Frugal homeowner receives helpful advice after searching for cheapest way to upgrade their water heater: 'Get that tax credit while you can'

A homeowner took to Reddit seeking advice on whether upgrading their water heater and taking advantage of the federal tax credit was worth the effort. 

In the subreddit r/heatpumps, they asked about replacing their water heater with a heat pump before federal incentives disappear. 

"Last year, I DIY installing a heat pump heating and cooling system," they began. 

"I did it for about $9000 total and of course got the tax credit. Now, with this tax credit coming to an end this year, I'm wondering if I should DIY installing a heat pump water heater."

They explained that they have solar panels installed, enabling them to heat water during the day when their energy is most abundant. The user added that the excess energy they generate is simply sent back to the grid.

"We have a heat water heater that is gas powered in which is about 10 or 12 years old," they explained. "It still works, but I just want would hate for it to give out six months from now and I would regret that I didn't get the tax rebate." 

Heat pump water heaters are an excellent way to save money on utility bills while also reducing your carbon footprint. 

Where traditional water heaters use gas or electric resistance, running a current through a system, heat pumps draw ambient heat from within your home or outdoors to heat water. 

They're far more efficient than traditional water heaters, and since they don't rely on natural gas, they eliminate the health risks associated with gas-powered systems. You can stack those savings by installing solar panels on your home. 

EnergySage provides free tools to help you get quotes from local installers, which can save you up to $10,000 on installation costs. If buying panels isn't in your budget, Palmetto's LightReach leasing program offers plans with $0 down, allowing you to lock in low rates. 

Should the government offer tax incentives for energy-saving home upgrades? Absolutely 👍 It depends on the upgrade 🤔 It should only be states ⚡ No way 🚫 Click your choice to see results and speak your mind.

Heat pumps aren't just for water heaters; they also efficiently and effectively heat and cool homes. Mitsubishi can help you find the right heat pump and connect you to trusted installers. 

In this case, commenters urged the poster to take advantage of the significant savings before they expired. 

"Get that tax credit while you can!" an account run by the organization QuitCarbon advised. "And all the other rebates you may qualify for — there can be many, depending on where you live, what you are replacing, how much you earn, etc." 

"I don't see why not," another said. "If you can, get it while you get a rebate." 

"Yes," a third began. "I switched to one 6 years ago. My energy use is 1/3 of what it was with a conventional electric hot water heater." 

"And it's programmable so that I can make it heat up at certain times of the day when I know there's going to be a lot of usage," the user added. "Definitely worth it. Especially in the situation you are describing."

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