There may be no time like the present if you want to upgrade from a traditional water heater.
Under the Home Electrification and Appliance Rebate Program, low- to moderate-income households are eligible for a point-of-sale rebate of up to $1,750 to transition to an Energy Star-certified heat pump water heater.
Homeowners who invest in an Energy Star-certified heat pump water heater can receive an additional 30% off their electrification project for a tax credit of up to $2,000. This applies to all products purchased and installed from Jan. 1, 2023, to Dec. 31, 2032.
High-efficiency heat pump water heaters are four times more efficient than standard models and use 70% less energy. They save families of four an average of $550 annually on electric bills and $5,600 over their lifetimes compared to traditional electric water heaters. According to Energy Star, it takes just three years for a heat pump water heater to offset its initial cost.
So, not only do you save money, but you also play your part in helping mitigate the effects of an overheating planet by reducing your carbon footprint.
The Inflation Reduction Act was passed in 2022. The legislation has helped millions across the nation increase the energy efficiency of their homes by incentivizing the implementation of clean energy appliances and improvements.
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One such option for homeowners looking to replace their outdated water heating systems is Cala's smart heat pump water heaters. The startup offers a highly customizable system with predictive technology to track your water usage habits and the most optimal time to draw power from the grid.
Cala estimates that its heat pump water heater can save you $6,000 over its lifespan, helping slash your energy consumption and bills while giving you hot water when you need it.
The rebates and tax breaks provided by the federal government may not last forever, though. President Donald Trump has already frozen the disbursement of funds under the IRA, leaving the future of the law uncertain.
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However, his plan is facing legal challenges and requires the approval of Congress, which is no guarantee. The Washington Post recently wrote that the administration may soon have to lift the freeze to comply with a court order, too.
Either way, time is of the essence if you want to upgrade to a heat pump water heater and save thousands of dollars in the process.
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