In 2020, 48% of U.S. households used natural gas for water heating, according to the U.S. Energy Information Administration. If these same households switched to a smart heat pump water heater, they could save over $2,100 on energy costs over the lifespan of a standard water heater, as defined by Lowe's.
Based on recent energy prices for natural gas in Arizona, heat pump water heater brand Cala calculated that the energy costs for a family of four using a natural gas water heater would be about $388 per year.
Conversely, a smart heat pump water heater, which intelligently optimizes water heater use based on the household's usage patterns, would cost about $134 in annual energy costs. That is about a 65% reduction in energy costs per year with a smart heat pump water heater.
With federal tax credits available through the Inflation Reduction Act, homeowners can save up to 30% off (up to $2,000 in savings) on a qualified, Energy Star-certified heat pump water heater. And Cala says its smart heat pump water heater could overall save you over $2,100 on total lifetime costs — or closer to $7,000 if you're replacing oil or propane.
However, the Inflation Reduction Act may not be around forever, as President Donald Trump has repeatedly mentioned wanting to eliminate these subsidies. While the future of the Inflation Reduction Act would require an act of Congress to effect any changes, taking advantage of these tax credits while they are still available could mean serious savings.
On top of the federal incentive, individual states and local governments may have additional rebates that will add further savings to lower the upfront cost of upgrading your home's water heater.
If your water heater at home is constantly leaking, needing repairs, making strange noises, or simply not heating well enough, it may be time to upgrade your water heater.
A smart heat pump water heater like Cala's can help homeowners drastically lower the annual energy bill associated with water heating. The smart technology behind this type of water heater intelligently optimizes the system to save energy during times when hot water is usually not in use, but it makes sure hot water is available when your household needs it.
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