Yes! However, it's always best to place your water storage tank inside, in a spot that remains above freezing all year round. For ideal performance, the unit should be located inside where the temperature stays within the 40º–90ºF (4.4º–32.2ºC) range. Many models can operate outside this temperature range for short periods of time, but it’s not ideal. If you live in more northerly states or Canada, consider getting a heat pump water heater that meets the Northern Climate Efficiency Specification developed by the Northwest Energy Efficiency Alliance (NEEA). These units have been tested using protocols with lower temperature ambient air and inlet water. All such units must be ENERGY STAR certified and generally have larger compressors that cut off at lower temperatures to work more efficiently in colder climates.