The government will pay you $2,000 to replace your water heater — here's what you need to know

Oct 14, 2024

If you're ready to make the switch but feel overwhelmed by the many choices out there, one stands above the rest.

Photo Credit: Cala

While ice bath cold plunges may be a growing trend, cold is likely the last thing you want when it comes to a bath at home. Further, letting the water run while it gets hot also runs up your bills. Thankfully, emerging technologies are making sure you don't find yourself waiting in the cold for your bath to get hot and that you save money, too, a major one of which is the heat pump water heater.

Like a regular heat pump, the U.S. Department of Energy explains that instead of generating a bunch of energy to heat your water, heat pump water heaters use electricity to move heat from one place to another, working like a refrigerator in reverse.

Because they don't have to generate heat to bring the heat, these water heaters can be up to three times more energy-efficient than conventional water heaters. Due to this efficiency, upgrading to a heat pump water heater will keep your water hot and more money in your wallet: nearly $3,000 over its first 10 years.

Long-term savings aside, the upfront cost of installing this technology can be steep, with Forbes reporting that the average cost is between $1,500 and $3,000.

Thankfully, the Inflation Reduction Act, a ground-breaking bill aimed at stopping rising global temperatures, offers tax incentives and rebates for eco-friendly upgrades, and heat pump water heaters fit the bill.

Financial savings aside, these appliances play a big role in saving the environment. Swapping your old appliances that run on dirty energy for eco-friendly appliances, such as heat pump water heaters, is one of the best ways to reduce your home's impact on the environment.

They also offer significant health benefits, as gas appliances cause respiratory issues and lead to a greater risk of heart disease.

If you're ready to make the switch but feel overwhelmed by the many choices out there, one newer option that stands out is Cala and its highly customizable smart heat pump water heaters by packing multiple punches.

The company has created what it calls the world's first intelligent heat pump water heater in that it understands your household's water usage habits and uses the information to optimize usage. This helps users drastically decrease their energy bills and environmental impact without losing an ounce of comfort.

The "intelligent" part of Cala's heat pump water heater further speaks to the fact that it uses predictive technology to heat water when your area's energy is the cheapest and cleanest.

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

Cala's water heaters are currently available to preorder, with deliveries beginning in 2025.

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