Save Energy, Save Money

Save Energy, Save Money
A monthly column by Michael Schultz, MS, AARP Oregon State Volunteer President

November 2023: Hybrid Heat Pump Water Heaters

Don’t let this get away from you—upgrading your home can provide you tax credits in 2023 (and in future years). The Federal Inflation Reduction Act contains three categories of energy-efficient home improvements that can generate credits today (depending on household income, and equipment efficiency).

Focusing in on an upgrade that you might be able to get installed before December 31, 2023, your water heater can generate tax credits of up to 30% of installation costs if it is a Heat Pump model. Heat Pump water heaters are sometimes called hybrid water heaters. They look just like conventional water heaters but use a fraction of the energy, saving you on the monthly operating cost as well.

The Heat Pump water heater takes heat from its surroundings using an evaporator and a compressor to heat and store water at 130 degrees F. Informational video for more details on operation in your home setting.

Local information on this product can be found via many sources. Phillip who installed a unit in his home this year says, “I looked at this website to get to a supplier and installer and information on incentives to make sure my old water heater would be replaced quickly to save me money on this basic home appliance.”