As temperatures plummet, utility costs can start to soar — and water heating is a significant part of that expense, accounting for nearly 20% of utility bills, per the U.S. Department of Energy. However, there's a way to get a lot of that money back: a heat pump water heater.
Because the devices are two to three times more energy efficient than traditional water heaters, they can save households hundreds of dollars on energy bills every year while reducing pollution connected to rising global temperatures and health complications like asthma.
So why doesn't every home have one? As Forbes explained, heat pump water heaters have a higher price point, ranging from $1,500 to $3,000, whereas a conventional water heater tops out at around $1,000.
If the upfront cost is what is holding your family back from installing a heat pump water heater, that's where the Inflation Reduction Act can assist, offering qualified households up to $1,750 in rebates and a 30% tax credit to cover part of the project.
At this time, the credits are slated to run through 2032, per the DOE. However, President-elect Donald Trump has stated his intent to roll back the IRA, so it's important to keep in mind that credit availability may be impacted after proposed changes make their way through Congress.
"There is always a strong likelihood that some parts of the IRA are going to be capped or phased out," Capital Alpha Partner managing director James Lucier explained to Fortune.
If you're counting on the IRA to transition to a heat pump water heater, doing so sooner rather than later could save thousands of dollars in the long run.
So, where to begin? EnergyStar has research tools that can help you investigate your options, but if you're looking to kick things up a notch, Cala is helping families save significant amounts of cash with "the world's smartest water heater."
The company's "intelligent" device uses predictive technology to determine the most cost-effective time to heat your water, leveling up its money-saving potential and ensuring that you'll have hot water available in the event of a storm-driven power outage.
"A Cala heat pump water heater should be like the most amazing maid of honor or best man at a wedding," Cala CEO Michael Rigney told The Cool Down, explaining that it can "take care of problems without bothering anybody."
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