In a process industry heat pump can be used for water heating application for an energy conservation application. The theoretical design for heat pump is designed from the point of view replacing electrical heaters. This paper presents simulation results of designed heat pump for water heating in a process industry. The paper also shows the results of indoor environmental quality improvement by heat pump around its surroundings. The compressor consumption analysis has done for electrical heater and heat pump also simulated results for compressor is shows in this paper. Electricity consumption has been reduced by designing and simulating heat pump process.