Hot water heaters are a beloved staple in every home, delivering steamy showers and soothing baths, but they can eat up a lot of energy (and money). But there are a few ways to save some big bucks and still get refreshed.
Heating water accounts for up to 18% of energy use in your home, and is usually the second-largest household expense, according to the U.S. Department of Energy. That means the average home spends anywhere from $400 to $600 on this via utility bills each year. One of several ways to reduce this expense, along with using less water and adding insulation to your pipes, is to upgrade to an energy-efficient heat pump water heater.
Heat pump water heaters work by using electricity to move heat from one place to another instead of generating heat directly, as explained by Energy Star. That efficiency can save a family of four an estimated $550 per year on its energy bill.
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Savings go up if you take advantage of the Inflation Reduction Act's (IRA) rebates and tax credits. Passed in 2022, the IRA rewards homeowners for making green upgrades to their homes, like solar panels and electric appliances. In the case of heat pump water heaters, you could get $1,750 through a Home Electrification and Appliance Rebate (depending on income eligibility and where you live). Or this appliance upgrade might help you earn a rebate as part of a broader home energy retrofit. Plus, you could see an additional $2,000 in tax credits.
You may want to act on what the IRA has to offer sooner than later due to the incoming administration. President-elect Donald Trump has stated he intends to dismantle the IRA once he takes office, per The Salt Lake Tribune. However, any changes would require an act of Congress to go into effect, making the IRA's future uncertain but not a foregone conclusion.
Energy Star offers guides for finding an installer for heat pump water heaters and other appliances that meet the IRA's requirements for rebates and tax credits.
One standout brand is Cala, the creators of a smart heat pump water heater. Cala's model is highly customizable and studies household habits to heat water exactly when needed, increasing comfort at home. By maximizing efficiency, your water bill drops, as does your environmental footprint.
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