Your outdated water heater could be costing you over $1,000 per year. With a money-saving upgrade, you could cut that bill by over $750 — and make your home more energy-efficient in the process.

The scoop

The experts at Cala Systems, a heat pump water heater company, know everything there is to know about heat pumps — and what your hot water should really be costing you. But the answer isn't one-size-fits-all. As Cala Systems explained, the cost of hot water varies widely from household to household based on factors like fuel type, utility rates, household size, usage patterns, and climate. 

A standard water heater uses gas, oil, or electricity to warm cold water, storing it in an insulated tank. A heat pump water heater, however, works more like a refrigerator in reverse. Instead of using energy to create heat from scratch, it pulls heat from the surrounding air and transfers it into the water. This process uses far less energy, making heat pump water heaters significantly more efficient — and cleaner — than standard systems.

Cala Systems' intelligent heat pump water heater takes it a step further, using advanced hardware, sensors, and software to learn how and when a household uses hot water. The system then heats water at the most efficient and cost-effective times, prioritizing when electricity prices are lower, solar power is available, or grid emissions are reduced. 

And the results can be dramatic. 

In one case, a two-person household in Georgia was paying $245 per year to heat water with natural gas. In another, a four-person household in New England was spending $1,100 annually to heat water with electricity. After switching to Cala Systems, the Georgia household reduced its yearly water-heating costs to just $66. The New England family cut its bill to $380 — a total savings of $767.

While installation costs vary based on the existing water heater, electrical setup, and local labor rates, Cala Systems noted that state and utility rebates — potentially up to $1,750 — can substantially reduce the upfront expense.

How it's helping

Because heat pump technology is far more energy-efficient than traditional water heaters, a Cala Systems heat pump uses much less energy to deliver the same amount of hot water, resulting in lower annual bills. Even when powered by grid energy, heat pump water heaters have lower carbon emissions than traditional systems. 

Cala Systems expands upon that by heating water when renewable energy is abundant or electricity demand is low. This reduces reliance on carbon-intensive power plants during peak hours.

Through its smart heat pump, Cala Systems makes this climate-friendly behavior automatic and easy. You don't have to change how much hot water you're using or when to use it. Instead, the smart system learns your household usage patterns, optimizes behind the scenes, and saves you money.

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What everyone's saying

Those who have made the switch often report lower energy bills and smarter performance, appreciating a water heater that finally matches how people actually use hot water.

"I bought Cala for two simple reasons: I liked the technology, and I wanted to lower my electric bill," a Cala customer said. "The idea that my old water heater was heating water all day — whether we were home or not — just didn't make sense."

"Costs way less to run than the oil one it replaced," another Cala customer said of their system. "Reasonably quiet, never have any issues with hot water supply, and generally it's just done its job without issue."

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