A new kind of water heater is more efficient than old-school gas boilers, and over $2,200 in government incentives is available to help cover the cost.
Heat pump water heaters draw heat from the air or the ground to create hot water, and they use electricity rather than relying on gas or propane. This intelligent technology provides various benefits for homeowners who want to make the switch.
These include lower energy bills, especially if you're switching from dirty fuels. One estimate from Cala Systems shows that a family of four in the Northeast can save $6,000 over the technology's lifetime after switching from a propane water heater.
These systems are smart too. Some can learn your schedule and heat water only when you need it.
They're also much better for indoor air quality than gas water heaters, which can release nitrogen dioxide and carbon monoxide into homes. If you're trying to cut energy costs without compromising your family's health, it's another reason to make the switch.
Between federal tax credits and state or local rebates, Cala estimates that you could get up to $2,265 off the total cost of a new unit. These credits come from the Inflation Reduction Act, which also helps people cover upgrades such as solar panels or energy-efficient appliances.
The IRA is still in place for now, but President Donald Trump has threatened to repeal the benefits it provides — although this would require congressional approval. If you're thinking about switching to a heat pump water heater, acting sooner could save you more money.
Cala's smart water heaters are designed to cut energy use without making you wait for hot water. They're customizable too, so they run only when you need them, which lowers bills and makes your home more efficient without extra effort.
Using less energy at home also reduces pollution and makes your household a little more climate-friendly. Weatherizing your home, upgrading to a smart home, and going solar are other ways to be more energy efficient while saving money.
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