Is your water heater old or outdated? Here's how to get the government to pay for a next-gen replacement

If you own a gas or electric water heater, chances are you know all about how inefficient some models can be. With typically lower uniform energy factor ratings, these heaters can often be cheaper upfront but cost you more in the long run. 

However, there's a way that you can upgrade your water heater with energy-efficient, next-gen technology … and receive money-saving incentives from the government in the process. 

The scoop

Heat pumps are hardly a new technology. In fact, they have been around since the 1850s. However, advancements in heat pumps have given the technology a wide assortment of possible applications. These include heating and cooling, refrigeration, and water heating. 

Heat pump water pumps work by drawing heat from the surrounding air and transferring it. According to the U.S. Department of Energy, heat pump water heaters "can be two to three times more energy efficient than conventional electric resistance water heaters." This increase in efficiency can lead to a substantial reduction in your electric bill.  

If you want to save even more money, keep in mind that heat pump water heaters also qualify for tax incentives thanks to the Inflation Reduction Act. Homeowners can save 30% of the project cost, or up to $2,000.  

However, while receiving tax incentives can be alluring, President Trump has signaled a desire to eliminate these subsidies, though it is important to note that significant changes to the IRA will require an act of Congress. Regardless, it may be prudent to take advantage of the incentives sooner rather than later. 

How it's helping

According to Energy Star, the installation of a heat pump water heater could save a family of four up to $550 a year compared to a traditional electric water heater. This is due to the fact that traditional water heaters need to convert fuel into heat. Over time, this can lead to inefficiency. 

Although switching to heat pump water heaters from companies such as Cala may cost a bit more out of the gate, you will likely notice significant savings on your electric bill that could make up for that price tag. As the "world's first intelligent heat pump water heater," Cala uses predictive technology that can optimize your home's energy source, such as solar power.  

On top of saving you money, heat pump water heaters can also drastically reduce the amount of pollution that your home produces. This could eliminate up to 2,000 pounds of carbon dioxide every year, according to the New Buildings Institute.   

What everyone's saying

While speaking to The Cool Down, Cala CEO Michael Rigney emphasized the important role that water heaters play in our homes. "No homeowner I've ever talked to cares about when [their water is] heated," Rigney said. "You just care that the hot water is there, right?"

How old is your current water heater? 10 years or older 😬 5 to 10 years old 🙂 Less than 5 years old 😎 I have no idea 🤷 Click your choice to see results and speak your mind.

Ultimately, Rigney believes that Cala could help reshape the way we look at energy efficiency.  "Our vision is really simple," Rigney added. "125 million water heaters in America should heat up when the wind is blowing and the sun is shining."

"That's going to be really inexpensive over time, and it's also going to decarbonize 3% of all greenhouse gas emissions in the whole country."

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