Your inefficient water heater could explain your sky-high energy bills — this high-tech model can save you $2,100

If you look at the usage breakdown of the average utility bill, you'll see that water heating is almost always the third-highest category, according to the Energy Information Administration. This also means it's the third-most expensive utility in your home.

Fortunately, a new generation of highly efficient heat pump water heaters (HPWHs) are helping homeowners slash these costs.  

The scoop

Many houses still heat their water with traditional tank heaters, which either burn dirty fuels or use electricity to heat water. These systems do produce hot water, but they often also result in energy being wasted due to standby heat loss, even when no hot water is being drawn.

Conversely, a heat pump water heater transfers thermal energy from the surrounding area to raise water temperatures — which is just as effective and vastly more efficient than burning fuel. In fact, the average HPWH is generally two to three times more efficient than a traditional water heater, according to EnergyStar.

And those numbers get even bigger when it comes to smart energy heaters, which use smart monitoring technology to anticipate heating needs and optimize energy usage. These heaters, like the ones from Cala, can be up to 500% more efficient than a conventional tank heater, saving homeowners an estimated $2,100 over their system lifetimes as compared to natural gas — and over $5,000 when installing one in place of a model that runs on oil, propane, or even electric resistance. 

How it's helping

In addition to being affordable, heat pump water heaters are significantly less pollutive than their oil and natural gas-burning counterparts. 

Because of this, U.S. homeowners who want to make the switch can take advantage of major incentives in the forms of tax credits and rebates. Many of these incentives are available through the federal Inflation Reduction Act, which currently offers rebates for up to 30% of the project cost — up to $2,000 — for new HPWHs.

However, President Trump has repeatedly mentioned that he plans to strike down as many of these incentives as possible. And while repealing the IRA would ultimately require an act of Congress, homeowners who are considering upgrading are advised to act sooner rather than later to ensure maximum savings.

What everyone's saying

For many people, the cost savings associated with a HPWH — especially a smart one like Cala's — are still only part of the allure. The other part is that, simply put, the technology is fascinating.

Not only do Cala's smart HPWHs lower both monthly bills and environmental footprints, they also improve comfort at home through their highly-customizable smart sensing technology. By learning the rhythms and demand patterns of each household, they ensure hot water is always available when it's needed — and that energy isn't wasted heating water when it's not.

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Michael Rigney, CEO of Cala, explained it to The Cool Down in a prior interview. 

"A Cala heat pump water heater should be like the most amazing maid of honor or best man at a wedding," he said. "[They] take care of problems without bothering anybody."

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