If your old water heater is nearing the end of its life, consider getting a heat pump water heater to save money on your electric bill.
The scoop
A water heater accounts for 20% of a home's energy use, but a heat pump water heater is two to three times more efficient.
According to the U.S. Department of Energy, instead of generating heat, heat pump water heaters work by "[pulling] heat from the surrounding air and [transferring] it -- at a higher temperature -- to heat water in a storage tank."
While upfront installation costs can be higher than those of a traditional water heater, the Inflation Reduction Act offers a tax credit and a rebate for installing a heat pump water heater.
The U.S. Department of Energy says, "This tax credit is valued at up to 30% of the cost paid by the consumer, up to $2,000 per year." You could also be eligible for a "Home Electrification and Appliance Rebate of up to $1,750" or a "Home Efficiency Rebate, which provides up to $8,000 off projects that significantly reduce household energy use" if it's an "ENERGY STAR-certified electric heat pump water heater."
Unfortunately, the future of these incentives is uncertain. According to The Salt Lake Tribune, President Donald Trump wants to eliminate them, but major changes to the IRA would require an act of Congress.
How it's working
Once your heat pump water heater is installed, you'll see massive savings. Cala, a smart heat pump water heater maker, says that you can save $476 annually compared to an electric resistance water heater.
Heat pump water heaters don't rely on dirty energy, so they emit less polluting gas and improve the air quality in the community. They also use less energy, reducing the strain on the electricity grid.
Cala is a great option when you're ready to replace your old water heater. When you install one of its heat pump water heaters, you can set your preferences on an app. The heater then learns your water usage habits and adjusts to your needs. Once it knows your preferences, it can change the temperature when it knows you'll use it.
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What people are saying
Michael Rigney, CEO of Cala, told The Cool Down, "125 million water heaters in America should heat up when the wind is blowing and the sun is shining."
He added, "It's also going to decarbonize 3% of all greenhouse gas emissions in the whole country."
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