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Oct 21, 2024

Government program offers homeowners $2,000 to upgrade their water heaters — here's how to access it

These heaters can save a family of four more than $6,000 over its lifetime. Photo Credit: iStock One remarkable device known as a heat pump water heater could save you thousands of dollars on your

These heaters can save a family of four more than $6,000 over its lifetime.

Photo Credit: iStock

One remarkable device known as a heat pump water heater could save you thousands of dollars on your energy bills over its lifetime.

A heat pump water heater "uses electricity to move heat from one place to another instead of generating heat directly," according to Energy Star, which explains this kind of setup maximizes energy savings. In fact, the company reports that a heat pump water heater reduces utility costs for a household of four by around $550 per year.

If that sounds enticing, consider that now is an excellent time to invest in one of these devices, as the Inflation Reduction Act is offering incentives for such home energy-efficiency upgrades.

For instance, you could qualify for up to $1,750 for a heat pump water heater through the Home Electrification and Appliance Rebates program. Additionally, you can claim up to 30% of your heat pump installation costs (up to $2,000) through the Energy Efficient Home Improvement Credit program. This tax credit is available through 2032.

First off, saving energy saves money — according to the U.S. Energy Information Administration, hot water typically accounts for 17 to 32% of energy costs in American homes.

Cutting down on energy use is also better for the environment. Currently, residential energy usage is responsible for about 20% of planet-heating pollution in the United States. Rising global temperatures threaten people and the planet, as they make weather catastrophes like wildfires, droughts, and flooding from hurricanes more severe and frequent.

Energy Star suggests a number of certified water heaters, but if you are able to wait until 2025 for a delivery, one startup called Cala is taking heat pump water heaters to the next level with its "intelligent" device.

By using predictive technology to heat water when energy is cheapest and cleanest, these special heat pump water heaters can further reduce demand for dirty energy and save a family of four more than $6,000 over its lifetime — all while making sure you have hot water in the event of a power outage.

"A Cala heat pump water heater should be like the most amazing maid of honor or best man at a wedding," Michael Rigney, CEO of Cala, told The Cool Down, adding that they "take care of problems without bothering anybody."

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