Many homeowners looking for more eco-friendly and efficient appliances are switching to heat pump water heaters.
The scoop
Heat pump water heaters work by drawing thermal energy from the surrounding air. Since they don't burn fuel, HPWHs can help lower a household's carbon footprint. They also function more efficiently than conventional water heaters, slashing homeowners' energy bills.
In addition to saving on utilities, homeowners who opt for heat pumps may qualify for thousands of dollars in installation costs, rebates, and tax credits under the 2022 Inflation Reduction Act. The tax credit alone can cover 30% of the purchase price and installation, up to $2,000. Even the best HPWHs cost under $3,000, with installation ranging from $1,000 to $3,000 depending on what you're replacing and removing, so a common 30% tax credit outcome is saving closer to $1,500.
On TikTok, clean energy advocacy group Faces of Clean Energy (@facesofcleanenergy) discussed the savings potential for homeowners in making the switch.
@facesofcleanenergy More homes are upgrading to cleaner, more efficient heating. 🔥 Heat pumps outsold gas furnaces by 37%! 🏡 Geothermal heat pumps slash energy bills. 💰 North Carolina launches $208M in rebates. Get all the #CleanEnergyWins in our blog and newsletter! #heatpump #heatpumps #fyp #news #goodnews #cleanenergy #cleanenergynews #geothermal #heating #efficiency ♬ original sound - facesofcleanenergy
In North Carolina, the voiceover reported, the state government has issued over $200 million in rebates to incentivize homeowners to install heat pump systems.
"I have an early '90s heat pump, with propane backup," one user commented. "BEST SYSTEM EVER!"
How it's helping
The benefits offered by the IRA are helping increase demand for more sustainable home technology. In 2024, heat pumps outsold gas furnaces by the highest margin ever, per the Faces of Clean Energy video.
In particular, smart-pump water heaters like Cala's can maximize long-term savings in addition to the initial federal subsidies.
Since household needs vary based on square-footage, occupancy, and location, heat pumps and HPWHs aren't one-size-fits-all. Customizing your HPWH with Cala or another smart-pump service can ensure your system suits your needs.
The rising popularity of heat pumps and HPWHs can lower household carbon emissions from HVACs, especially as demand slackens for fuel-based electricity.
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Which of these factors would most effectively motivate you to buy a heat pump? Click your choice to see results and speak your mind. |
Lower energy bills 💰 Carbon pollution is the leading contributor to climate change and its wide-ranging effects. For humans worldwide, rising temperatures have manifested in public health disasters and food insecurity, among other ramifications.
President Trump's administration is also threatening funding cuts that could dismantle the IRA and its subsidies for current homeowners. Although any major changes would require an act of Congress, upgrading to heat pumps sooner rather than later may be the best option.
EnergySage's heat pump marketplace can get you started, connecting you with local installation services and keeping you informed about national and state-wide policies to finance your switch.
What everyone's saying
Responses to federal heat pump incentives are overall curious and enthusiastic.
"I had a $750 rebate from Maine and another rebate from federal." one Redditor wrote about their HPWH. "Made it very cheap. Works great, uses a lot less electricity than my old traditional one."
"One of the best energy savings decisions you can make," said another.
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