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Are your energy bills way too high? Replacing your outdated water heater could save you $5,100

Households can save up to $300 per year just by switching.

Households can save up to $300 per year just by switching.

Photo Credit: Depositphotos.com

If your utility bills seem like they're climbing higher every month, your water heater might be quietly to blame.

The scoop

Many homes still use outdated water heaters, which are among the least efficient appliances in the home. However, simply switching to a modern heat pump water heater could save around $5,100 over its lifetime, all while slashing energy usage.

Heat pump water heaters extract heat from the surrounding air or the ground to warm water, rather than generating heat directly, using up to 70% less energy in the process.

How it's helping

The obvious first benefit of switching is lowering utility bills

Households can save up to $300 per year just by switching to a heat pump water heater, according to the United States Department of Energy. That's money that can be put toward groceries, rent or mortgage payments, or savings instead of pouring it into a wasteful appliance.

Additionally, these upgrades help slash pollution by reducing reliance on dirty fuel-powered water heaters.

Heat pumps are just one way to make a home more eco-friendly. Installing solar panels can power a home with clean, renewable energy — cutting electricity bills and reducing carbon pollution. Meanwhile, switching to an induction stove offers faster and more precise cooking with far less wasted energy than gas or traditional electric stoves. Together, these upgrades can be incredibly cost-effective.

What everyone's saying

Brands like Cala are leading the charge with smart, ultra-efficient units that only heat water when it's actually needed. That means no wasted energy, no standby heating, and no surprise bill spikes.

According to Cala's estimates, homeowners can expect to save around $5,100 over the unit's lifetime under the electric resistance replacement scenario. 

Even better, many households qualify for rebates and tax incentives through the Inflation Reduction Act, which can significantly cut upfront costs. However, acting sooner than later is important, as President Trump has signaled his intent to remove these incentives — although this would require an act of Congress.

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Thankfully, there's growing momentum around smarter appliances. They demonstrate that sustainability doesn't have to mean sacrifice — it can mean serious savings, too.

Join our free newsletter for easy tips to save more and waste less, and don't miss this cool list of easy ways to help yourself while helping the planet.

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