Switching from a traditional water heater to a heat pump can save money, increase energy efficiency, and end unexpected cold showers for good.

Standard water heaters use gas or electricity to heat water stored in a tank. When a household's demand for hot water exceeds the size of the tank, the water will run cold — a familiar experience to anyone who has tried to shower while the dishwasher was running.

Heat pump water heaters, on the other hand, act like reverse refrigerators, using electricity to harness heat from the air outside the unit. Because these water heaters transfer heat instead of generating it directly, they use two to three times less energy than conventional alternatives, according to the U.S. Department of Energy.

Lower energy usage means lower electric bills. The average household spends $400 to $600 a year on water heating, the DOE added, but people who use energy-efficient heat pumps can save nearly $300 a year on electricity.

One heat pump water heater company, Cala, maximizes savings by using smart technology to monitor electricity prices and heat water when it is most cost-effective. It also gets to know each household's hot water usage schedule, ensuring a consistent supply is available.

Your individual savings might vary based on where you live and how much hot water you use, but Cala anticipates hundreds of dollars of savings for a variety of households making the switch. It also offers free, personalized estimates on local hot water costs and potential savings.

To lower your energy bills to almost nothing — while ensuring that your heat pump water heater is powered by renewable energy — consider installing solar panels. TCD's Solar Explorer makes it easy to explore your options by connecting you with vetted local installers and curating competitive bids so you can save up to $10,000 on solar installations.

This investment doesn't need to come with a short-term hit to your wallet. The Solar Explorer has no-money-down subscription options, like Palmetto's LightReach solar leasing program, which lets users lock in low energy rates.

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