Your outdated water heater could be draining your wallet — this next-gen model can save you $6,900

There's nothing worse than cold showers and high electric bills, but this next-gen water heater can solve both those problems while benefiting the planet. 

The scoop

Water heating accounts for about 20% of your home's energy use, which can add up quickly. The Department of Energy states that the average American family spends about $400 to $600 annually to heat water, but that can be as high as $1,000 depending on what energy source you use. 

If you switch to a heat pump water heater, you can cash in on significant savings. Because these high-tech water heaters are two to three times more efficient than traditional electric water heaters, they can shave about $550 a year off your energy bills if you purchase an Energy Star-qualified model, per Energy Star.

Thanks to the Inflation Reduction Act, homeowners can also claim a 30% tax credit (up to $2,000) when they buy a heat pump water heater. Environment America reported that government rebates could cover an additional $1,750 for low-income residents who purchase a heat pump water heater.

How it's helping

This energy hack can save you a ton of cash on electric bills, but it's also better for the planet since heat pump water heaters don't use dirty fuels like oil and gas. 

If you want to boost your savings and environmental impact, consider checking out Cala's new generation of heat pump water heaters. Cala bills the product as the world's first intelligent heat pump water heater because it's equipped with predictive technology to analyze your household's water usage, bringing you affordable hot water on demand. 

This makes showers more comfortable and drastically reduces your electric bills. The company estimates lifetime savings of more than $2,000 over natural gas heaters, more than $5,000 compared to electric, and nearly $6,900 when you upgrade from oil and gas-powered water heaters. And because they rely on smart technology and don't release polluting fuels, they're much better for the environment than traditional water heaters.

While IRA incentives for heat pump water heaters and other energy-efficient upgrades are still available, they may not be for much longer. President Donald Trump has repeatedly said he wants to repeal many of the incentives offered through the IRA, though Congress would have the final say in the matter. But with the future of the incentives being uncertain, it's wise to claim potentially thousands of dollars in savings while you can. 

You can take advantage of these tax breaks to weatherize your home, upgrade to a heat pump for heating and cooling, and plenty of other home improvements that can slash your electric bills and lower your home's carbon output. 

What everyone's saying

Both Reddit users and The Cool Down readers highly recommend heat pump water heaters. 

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.

"I LOVE my heat pump water heater. It is helping us save money because it's more efficient, got the gas out of our house, and has worked like a charm," one TCD member said. 

"We put in a 120v heat pump water heater and it works great!," a Reddit user in r/heatpumps said. "The bottom line is: The unit is pretty quiet, it has an AC affect on my garage, it's greener, we're saving money monthly and it was cheaper to install. 10/10 would recommend!"

"A HPWH was one of my highest ROI efficiency projects. Switching from a gas to HPWH saved us about $250/yr in utility bills," another user shared.

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