This unbelievably high-tech water heater puts older units to shame — here’s how it could shave thousands off your energy bill

Water heating is one of the largest energy costs in a home, accounting for nearly 20% of your energy bill and costing some households up to $1,000 per year. As TCD previously reported, switching to a heat pump water heater could dramatically reduce these costs while reducing your home's emissions.

Even better, homeowners can use the Inflation Reduction Act to receive a 30% federal tax credit and could qualify for additional state rebates.

Those savings won't last forever, as President-elect Donald Trump has announced he intends to eliminate the subsidies, although doing so would require congressional action.

The shovel

Heat pump water heaters work differently than traditional systems. Instead of burning gas or relying solely on electricity, they draw heat from the air to heat water, making them up to 500% more efficient. Heat pumps work by transferring heat using refrigerant gases, the same technology used in refrigerators and air conditioners, the Financial Times reports.

Not only does this smart technology save money, but it is also aligned with renewable energy sources, making it a great eco-friendly upgrade.

Cala, a company focused on smarter energy solutions for homes, offers a smart heat pump water heater that learns your household's water habits. It heats water when energy is cheaper, such as off-peak times or when your solar panels are operating.

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Additionally, an easy-to-use app is included so you can monitor and control everything from your phone.

CEO Michael Rigney told TCD the system is designed to “solve problems without disturbing anyone,” so you can enjoy hot water when you need it without wasting energy.

How it helps

Cala estimates that by switching to the heat pump water heater, a family could save over $6,000 in lifetime costs compared to a propane system and about $5,000 compared to a natural gas or electric model.

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In addition to individual advantages, heat pump water heaters significantly reduce pollutant emissions by avoiding the use of dirty energy. According to the U.S. Department of Energy, converting every home in the United States to a heat pump model could eliminate over 500 million tons of planet-warming pollution within 30 years.

What everyone says

“My electric vehicle charger will do the same, but we need more smart devices to take full advantage when the sun shines,” shared one commenter in an Electrek report on Cala.

Homeowners who switch to heat pump water heaters consistently report lower energy costs and reliable water heating. One user shared his experience upgrading to a more efficient system: “Simply fantastic and our natural gas bill has gone down significantly (compared to our old natural gas water heater).”

Rigney summed it up this way: “The 125 million water heaters in America should heat up when the wind blows and the sun shines.”

With IRA incentives still available, now is the time to upgrade to a heat pump water heater. The 30 percent tax credit and additional rebates could result in thousands in savings. However, with the future of the program uncertain, the best option is to secure these benefits now.

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