As living costs rise, there are many things that families can do to save more than just a few dollars each month. One of the most common things people do when their energy bills get too high is to save energy.
But most of us already do these things: turn off the lights when you leave a room, keep the thermostat at a reasonable temperature, use less water when you brush your teeth, and unplug appliances that aren’t being used.
What if there were more ways to save money, especially over time? We all know that some of our tools aren’t very good at what they do, but most people can’t afford to buy new ones when the old ones still work. It’s better to save a little more money for a few more months than to pay to replace a model that works, especially since it doesn’t cost much to run.
This is why it’s so important to know what’s going on. As winter approaches and our water heaters work harder, changing this piece of equipment might not cost as much as you think and will probably save you a lot of money.
What is a heat pump water heater?
A heat pump water heater, according to Energy Star, “uses electricity to move heat from one place to another instead of generating heat directly.” This makes the heater as energy efficient as possible and cuts the annual utility costs for a family of four by about $550.
Many people haven’t put them in even though they’ve had the chance because they don’t know they exist or how important they are to a home energy system.
That could change now, though, especially for people who read about the new tax breaks the Inflation Reduction Act gives people who make home energy-efficiency improvements. If you live in certain areas and your water heater is over 10 years old, the Home Electrification and Appliance Rebates program might let you get a heat pump water heater for up to $1,750.
The Energy Efficient Home Improvement Credit scheme also lets you get up to 30% of the cost of installing a heat pump, or up to $2,000. This would save you a lot of money, and if you are smart with your savings, the upgrade might even be free. Plus, you will save money on your bills after the update.
Why is energy efficiency important for your bills?
If the fact that the upgrade costs so little doesn’t change your mind, the fact that the money saved could be put to better use in any home might. In American houses, hot water costs 17 to 32% of the energy used, according to the U.S. Energy Information Administration. People in the US pay an average of $429.33 a month for utilities.
If you only take out the cost of utilities, that would be about $73 a month, or $800 a year. That’s the bottom end. You would save a lot of money on utilities if you could get them to cost 32% less by changing your appliances. The savings would be huge and cover the costs in just one year.
Even if saving energy isn’t what drives you, caring about the world might. If you want to be kind to the earth, use the things you already have. But sometimes that might not be the best idea. Using too much energy at home is linked to about 20% of global warming pollution in the US.
The less damage our appliances and usage do, the better it is for the earth. For example, this swap can help the environment, especially if you make sure to return the parts the right way.