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You can't say that your 120VAC 25Watt pump puts 25 watts of heat into the water. It's most likely maybe 10% if that, which is only 2.5 watts
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I can say that those 22.5w of kinetic energy transfered to the water cannot leave the system in any form other then heat. So while you are correct that the pump itself maybe 90% effcient, all of the kinetic energy it produces will be converted to heat. Otherwise energy in the system would build up endlessly (current going in is constant), and of course this doesn't happen.