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Oct 23, 2024

This amazing smart home tech can slash your energy bills by $600 a year — here's what you need to know

"You can get up to 500% efficiency with a heat pump water heater." Photo Credit: Getty Images Heat pump water heaters are quickly becoming the hottest new home appliance, helping families save

"You can get up to 500% efficiency with a heat pump water heater."

Photo Credit: Getty Images

Heat pump water heaters are quickly becoming the hottest new home appliance, helping families save hundreds on their electric bills while making cold showers a thing of the past.

Ready to ditch your old water heater and make the switch? Here's how to get started.

Unlike traditional water heaters that use propane, natural gas, or electricity to generate heat, heat pump water heaters use electricity to move heat from their surroundings into the tank.

It may sound strange, but the process is much more efficient and can yield huge energy savings — possibly more than $6,000 over the water heater's lifetime or up to $600 annually — if you switch from propane, according to estimates from tech company Cala.

In addition, you can save even more with tax credits and rebates through the Inflation Reduction Act.

When you're ready to upgrade, you can snag a 30% tax credit from the government on qualifying models. Low- and moderate-income households could be eligible for an additional $1,750 in rebates by purchasing an energy-efficient water heater, per the Department of Energy.

Because heat pump water heaters are two to three times more efficient than conventional models, according to the DOE, they help reduce your electric bills and do the environment a big favor.

Plus, since they run on electricity, they're much better for indoor air quality than gas or propane water heaters.

Cala CEO Michael Rigney told The Cool Down, "You can get up to 500% efficiency with a heat pump water heater," meaning less pollution from dirty fuels like oil and gas.

In fact, according to a New Buildings Institute study, you could save over a ton of carbon pollution annually by swapping your old water heater with a heat pump model. Your wallet and the planet will thank you when you make the switch.

There are many options, but to help you narrow it down, you can check out the Department of Energy's free tool to help you decide and find installers.

If you're looking for a water heater with customizable settings and features, Cala launched what it calls the world's first "intelligent" heat pump water heater that kicks things up a notch, with deliveries set to begin in 2025 on preorders.

With predictive controls, its water heater can optimize your household's water usage and deliver hot water when needed, saving you money and time waiting for the water to heat up.

"Cala delivers up to 50% more hot water by heating to a higher temperature and then mixing with colder water at the outlet to maintain a consistent delivery temperature to your home," the company said on its website.

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