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Oct 26, 2024

These ultra-efficient water heaters can save you hundreds — and you could earn $2,000 or more in incentives

The government is offering incentives to make it easier to switch. Photo Credit: iStock While it might be counterintuitive, one of the best ways you can save money at home is by upgrading your

The government is offering incentives to make it easier to switch.

Photo Credit: iStock

While it might be counterintuitive, one of the best ways you can save money at home is by upgrading your appliances.

It takes an initial investment, but the right devices will pay for themselves in energy savings — not to mention being better for the environment. Plus, the government is offering incentives to make it easier to make the switch.

A stellar example of an energy-efficient appliance is a heat pump water heater. Instead of using fuel or electricity to directly generate heat inside the appliance, a heat pump gathers and redistributes heat from outside.

This method transfers significantly more heat using the same energy, so you could save around $550 a year on energy costs with this type of water heater.

Not only that, but the Biden administration's Inflation Reduction Act has set aside money for discounts, rebates, and tax incentives for eco-friendly home upgrades. According to nonprofit Rewiring America and Energy Star, a heat pump water heater could qualify you for up to $2,000 in federal tax credits to help offset the installation price.

Households in qualifying locations and with certain income levels may also qualify for rebates on heat pump water heaters and other efficient appliances.

Saving money is a good enough reason for any household to make the switch if possible, but the benefits of a heat pump water heater go beyond that.

If you have a gas water heater, then switching to any electric model helps eliminate fumes from your home that could increase your family's risk of asthma and cause other respiratory problems. Plus, those fumes also add to heat-trapping air pollution, so electric heaters are better for the planet.

If you already have an electric water heater, switching to a heat pump unit will lower your energy usage, thus reducing your impact on the electric grid and the environment — all while still providing you with perfectly hot water.

If you want a heat pump water heater, a smart model from Cala is an excellent choice. These devices are highly customizable and will help lower your energy bill by only heating water when you're likely to use it. If you're worried about running out, don't be — Cala's appliances are designed with comfort in mind and will adapt to your needs.

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