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Homeowner seeks financial advice on the benefits of a new water heater: 'We use half of the electricity'

"It's typically about 1/3 of the usage of an electric water heater."

"It's typically about 1/3 of the usage of an electric water heater."

Photo Credit: iStock

Thinking about switching to a heat pump water heater, but worried about efficiency in winter weather? One New York homeowner had the same question — and the answer could save you big.

The scoop

In a recent Reddit post, a New York homeowner asked about switching to a heat pump water heater in hopes it will "help [their home's] energy consumption." The homeowner wanted to hear from others who live in colder winter climates who have made the switch, hoping to understand how the system would fare in his region's conditions, especially as it pulls cold groundwater and ambient air for heating in the winter.

How it's helping

A heat pump water heater works like a sponge for heat — it grabs heat from the air around it, concentrates it using a small amount of electricity, and then uses that heat to warm your water. 

The Environmental Protection Agency reports that heat pump water heaters are cleaner, more efficient, and better for the planet than traditional systems. That's because they don't have to make a lot of heat to be effective. Instead, the system moves heat from one area to another — and uses a lot less electricity to do so. This means the system can seriously cut your electric bills — and your home's impact on the planet. 

While heat pump water heaters do cost more up front than standard systems — usually between $1,500 and $3,000, plus installation — the long-term savings can make the investment well worth it.

Fortunately, there is help available to homeowners to offset some of the often high costs of switching to a heat pump water heater. Through the Inflation Reduction Act, eligible homeowners can get a point-of-sale rebate of up to $1,750 when transitioning to an Energy Star-certified heat pump water heater. Homeowners who invest in an Energy Star-certified heat pump water heater can also receive an additional 30% off their electrification project for a tax credit of up to $2,000. 

Energy Star estimates a heat pump water heater saves the average U.S. family about $550 per year compared to a standard electric water heater. That's more than $5,610 over the HPWH's lifetime.

What everyone's saying

Commenters on the Reddit post assured the New York homeowner that they would save money by switching to a heat pump water heater.

"I'm in central MA, so not a very different climate than yours, and I switched to a HPWH last October," one commenter wrote. "We use half of the electricity at worst, usually just a little less than that, of what our traditional electric tank did. [It] works just fine with the cold groundwater."

"You have almost the exact same set-up as my home in New Hampshire," another commenter added. "It's typically about 1/3 of the usage of an electric water heater. We run it in heat pump mode exclusively and have yet to run out of hot water, even with 15-minute back-to-back-to-back showers."

Which of these factors would most effectively motivate you to buy a heat pump?

Lower energy bills 💰

Better temperature control 🌡️

Helping the planet 🌎

I'd never buy a heat pump 🚫

Click your choice to see results and speak your mind.

If you're looking to switch to a high-performing heat pump water heater, Cala is a smart choice — literally. 

Cala's smart, highly customizable systems help homeowners significantly cut their energy bills and reduce their environmental impact. By learning your household's water usage patterns, Cala "thinks ahead" to optimize performance and reduce energy costs — and lets you track it all with an app. With Cala, it's easy to see just how much your system is saving you.

But government rebates for heat pump water heaters may not be around forever. President Donald Trump has suggested plans to dismantle the IRA, which could cut or eliminate incentives for climate-friendly home upgrades. Though major changes to the IRA would require congressional approval, taking advantage of incentives sooner rather than later could save you thousands.

Join our free newsletter for easy tips to save more and waste less, and don't miss this cool list of easy ways to help yourself while helping the planet.

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