Air-source heat pump (ASHP) often operates with substantial frost formation on the outdoor heat exchanger at low ambient temperature in winter, it insulates the finned surface and also reduces heat transfer rate, leading to performance degradation or even shutdown of ASHP systems. Although several defrosting methods have been reported, the frosting and defrosting processes reduced energy efficiency and resulted in, in some cases, heat pump breakdown. To solve this problem, a novel frost-free air-source heat pump water heater (ASHPWH) system has been developed, which coupled with an extra heat exchanger coated by a solid desiccant (EHECSD) with an energy storage device (ESD). Based on the previous studies, a further analysis and comprehensive research on the novel frost-free ASHPWH system is presented in this paper. The dynamic characteristics of the novel system are investigated experimentally in different ambient conditions. An experimental setup and experimental procedures are described in detail. Thereafter, the dehumidification efficiency and regeneration efficiency of EHECSD, suction and discharge pressures of the compressor, the temperature of PCM are evaluated during the heating and regeneration modes respectively. Results indicate that the system can keep the evaporator frost-free for 32, 34, 36 min during heating mode at the ambient temperatures of -3 degrees C, 0 degrees C and 3 degrees C and 85% RH. Compared with the reverse-cycle defrosting (RCD), COP of the frost-free ASHPWH are 17.9% and 3.4% higher at the ambient temperature of -3 degrees C and 3 degrees C respectively. With this innovative technology, it has been proved that the new system can realize continuous heating and excellent performance at a low ambient temperature. (C) 2014 Elsevier Ltd. All rights reserved.