Hybrid electric water heaters are also referred to as Heat Pump Water Heaters (HPWH) and are a combination of an air source heat pump and an electric water heater storage tank that can be used to heat water in domestic applications. HPWHs are a promising technology and use the same mechanical principles as refrigerators and air conditioners, but in reverse, taking heat from the environment and concentrating it to heat water for service needs. Many HPWHs are designed and fabricated with wrapped-tank D-shape coils, or microchannel condenser coils. Now that electrification is the goal, what is the most efficient condenser coil solution for HPWHs? Which HPWH coil technology is best and provides better efficiency, lower refrigerant charge, and superior operational ability for consumers? This Tech Tip answers those question and details the advantages of utilizing micro channeling in HPWHs and their benefits to contractors and their customers.