This unbelievably smart water heater predicts the future to lower your energy bills — and the government will pay you $1,200 to get one

If you want hot deals for your home's smart water heater, the time is now.

The scoop

Heat pump water heaters can lead to significant energy bill savings for homeowners. These innovative systems are highly efficient, often operating at 200% to 500% efficiency as compared to traditional fuel-burning systems, per EnergyStar.

This efficiency translates into reduced energy consumption and lower utility bills.​

Additionally, the Inflation Reduction Act currently offers generous incentives for energy-efficient home improvements, which means even more savings for homeowners.

Specifically, the 25C Energy Efficient Home Improvement Tax Credit provides a tax credit covering 30% of the cost of installing eligible heat pump water heaters, up to $2,000. If an electric panel upgrade is necessary to accommodate the new system, homeowners may be eligible for an extra credit of up to $600, per EnergyStar.

And for even more improved efficiency and ongoing lower bills, many homeowners are opting to upgrade to smart water heaters.

How it's helping

Smart heat pump water heaters are designed to optimize energy usage and enhance user comfort.

Unlike traditional models that heat water at a constant rate, these systems learn households' unique hot water usage patterns and adjust their heating schedules accordingly. This approach ensures that hot water is available when needed while minimizing energy waste. 

One model TCD recommends is the Cala water heater. The system is controlled through an app, which allows users to set preferences based on priorities such as cost savings, energy reduction, or pairing up with their home solar systems. 

Cala's model is priced at $2,850 plus an installation cost that will depend on your own home. The company estimates an average installation to replace a natural gas unit to cost $2,970 in total after federal and local rebates cover almost all of the install costs, with $1,230 of those savings coming from the aforementioned Energy Efficient Home Improvement Tax Credit. 

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Cala projects that same home would save $2,132 over the lifetime of the unit in bill savings, with more than $5,000 in lifetime savings if choosing Cala over an electric resistance, oil, or propane unit, as those tend to cost even more in monthly bills.

Environmentally, the reduced energy consumption translates to reduced harmful gas pollution, and it's also just safer to reduce the number of gas-powered appliances in a home, given the small risk for leaks or fires. Since a heat pump water heater moves heat into the unit, it's generally a lot closer to a refrigerator when it comes to safety. 

What everyone's saying

While intelligent heat pump water heaters are relatively new, they have garnered attention for their innovative approach to energy efficiency. Discussions among industry professionals and consumers highlight a growing interest in smart home technologies that offer both economic and environmental benefits. 

However, homeowners who want to jump on board with the best deals should act sooner rather than later. President Donald Trump has expressed intentions to eliminate such subsidies, which could impact the availability of these tax credits in the future. Ultimately, these changes would require an act of Congress, but it's still wise to move quickly if possible.

As more homeowners seek sustainable solutions, modern smart home products are ready to play a significant role in better managing our at-home energy usage.

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