Seasonal performance evaluation methods for water heaters are reviewed and an experimental method for rating air-source heat pump water heaters is presented. The rating method is based on measured heat pump performance during heat-up operation of particular products rather than a generic simulation model of heat pump performance. The measured performance is used in a correlation model of the heat pump unit in an annual load-cycle system performance simulation based on the TRNSYS simulation package. (C) 2003 Elsevier Ltd. All rights reserved.