A water heater includes a water tank for storing water to be heated and a thermosiphon tube in the water tank. The thermosiphon tube has a first end in a bottom portion of the water tank and a second end in a top portion of the water tank. At least a portion of a condenser tube of a heat pump is surrounded by the thermosiphon tube to define a water flow channel between the thermosiphon tube and the condenser tube. The condenser tube is at an elevated temperature compared to water temperature in the water flow channel due to a refrigerant cycle of the heat pump. A water pump is configured to flow water through the water flow channel to heat the water in the water flow channel and deliver the heated water into the top portion of the water tank through the second end of the thermosiphon tube.