Most basements stay above freezing year round. Heat pump water heater will return about 3 units of hot water for every 1 part of electricity at 35F. 4 to 1 return at 55 or above. I know, I import and resell theses units. after about 50 installs, never yet an un -happy customer. Use your house heater for heating, a heatpump heater for domestic water. you will not be sorry. here is a comparison, a resistance electric water heater consumes 17 amps of 220 volts for about 13000 btu of delivered heat, a heat pump water heater consumes 3 amps of 220 volts to deliver the same btu's. I can ship a very good unit, 50 or 65 gallon capacity, 220volt, stainless steel holding tank, one of the few that use stainless. Paul.