A method of controlling a startup operation in a heat pump water heater system prevents inadvertent shutdowns and/or low operating efficiencies via closed loop control of the system. The method includes choosing an expansion valve opening at startup near an expected steady state value to ensure high system capacity as early as possible, setting a water pump signal to a high level to maximize cycle efficiency during warm-up, and applying closed loop control over the expansion valve and the water pump to increase the pressure in the system in a controlled manner until the system reaches a steady operating state. The method provides stable startup control even if a transcritical vapor compression system is used as the heat pump