Heating water is one of the biggest energy expenses in a home, making up nearly 20% of your energy bill and costing some households up to $1,000 a year. As TCD has previously covered, switching to a heat pump water heater could dramatically cut those costs while reducing your home's pollution footprint.
Even better, homeowners can take advantage of the Inflation Reduction Act to claim a 30% federal tax credit and could qualify for additional state rebates.
These savings won't last forever, as President-elect Donald Trump has said he intends to eliminate the subsidies, though this would require congressional action.
The scoop
Heat pump water heaters work differently from traditional systems. Instead of burning gas or relying solely on electricity, they draw heat from the air to warm water, making them up to 500% more efficient. Heat pumps operate by transferring heat using refrigerant gases, the same technology found in refrigerators and air conditioners, as reported by the Financial Times.
This smart technology not only saves money but also aligns with renewable energy sources, making it a great eco-friendly upgrade.
Cala, one company focused on smarter home energy solutions, offers an intelligent heat pump water heater that learns your household's water habits. It heats water when energy is cheaper, like during off-peak hours or when your solar panels are running.
Plus, it comes with an easy-to-use app that you can monitor and use to control everything from your phone.
CEO Michael Rigney told TCD the system is designed to "take care of problems without bothering anybody" so you can enjoy hot water when you need it without wasting energy.
How it's helping
Cala estimates that switching to its heat pump water heater could save a family over $6,000 in lifetime costs compared to a propane system and around $5,000 compared to a natural gas or an electric model.
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Besides individual benefits, heat pump water heaters significantly cut pollution output by avoiding the use of dirty energy. According to the U.S. Department of Energy, if every home in the United States switched to a heat pump model, it could prevent over 500 million metric tons of planet-warming pollution over 30 years.
What everyone's saying
"My EV charger will do that too but we need more smart appliances to take full advantage when the sun is shining," one commenter shared on an Electrek report about Cala.
Homeowners switching to heat pump water heaters consistently report lower energy bills and reliable hot water. One user shared their experience with upgrading to a more efficient system: "Just fantastic and our natural gas bill has dropped significantly (vs. our old natural gas water heater)."
Rigney summed it up by saying the "125 million water heaters in America should heat up when the wind is blowing and the sun is shining."
With IRA incentives still available, now is the time to upgrade to a heat pump water heater. The 30% tax credit and additional rebates could mean thousands in savings, but with the program's future uncertain, acting now is the best way to lock in those benefits.
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