My parents got a heat pump water heater (electric) a few months ago and it's great. Definitely the priciest option, but it sips electricity and also cools the area around it (basically operating as an "inside out refridgerator").

In this same remodel I also convinced them to get heat pump / AC combo unit to replace the old gas furnace. Again amazingly cheap (even compared to gas), but also higher upfront cost.

This is in a coastal California region, so I'm not sure how well these heat pump solutions will work in colder places (ice would likely form on the heat pump near freezing, limiting its capability), but if anyone is looking to upgrade either a hot water heater or an AC unit, I cannot recommend the heat pump option enough (if you can get through the higher up front cost).