If your monthly utility bills keep creeping up, your water heater might be part of the problem. Traditional electric water heaters are among the biggest energy hogs in your home, but switching to a heat pump water heater could save you up to $600 a year. These devices are two to three times more efficient than standard models, and a federal push to make clean tech more affordable means big rebates and tax credits are available.

Thanks to the Inflation Reduction Act, homeowners can get a 30% tax credit (up to $2,000) and may also qualify for rebates. But these incentives may not be available forever. President Donald Trump has consistently said he wants to eliminate subsidies for clean energy tech. While major changes to the IRA would require an act of Congress, locking in these savings sooner rather than later could be worth thousands of dollars.

The scoop

A heat pump water heater works by pulling heat from the air around it and using it to warm water. It's highly efficient and doesn't burn dirty fuel sources such as gas or use as much electricity as a conventional heater.

Modern smart models, such as those from Cala, are cutting edge in the market. Cala's intelligent water heaters are designed to optimize usage, heating water exactly when you need it and saving energy when you don't. They can be installed in most homes without any special plumbing or ventilation needs, and some models qualify for full or partial rebates through IRA programs.

How it's helping

Beyond the immediate savings, heat pump water heaters can increase your home's value, make your home more comfortable, and slash your overall household energy consumption. Over the lifetime of the unit, that's thousands of dollars that stay in your pocket.

Even better, these water heaters help decrease planet-warming pollution tied to home energy use. By making simple changes such as upgrading appliances, weatherizing your home, and using smart tech, you can reduce your home's carbon footprint and support a cleaner future for us all.

Another ultimate energy hack to compound the savings is installing solar panels, which can bring your cost of energy down to or near $0. EnergySage offers free tools that make it easy to compare quotes from vetted local installers and save up to $10,000 on installation.

What everyone's saying

According to Cala, its smart water heaters help customers slash energy bills and pollution while making their homes more comfortable. And more homeowners are jumping on the heat pump train. 

"Amazing!" one user wrote on Instagram. Another commented: "This is so beneficial! Need this for my home ASAP!!"

"There is also a giant prize here for consumers who get to stop throwing away their money, to the tune of $20+bn a year in saved operating costs, not to mention saving 3% of US GHGs (yes, really)," wrote Burnt Island Ventures about its decision to invest in the company.

How old is your current water heater? 10 years or older 😬 5 to 10 years old 🙂 Less than 5 years old 😎 I have no idea 🤷 Click your choice to see results and speak your mind.

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