A long, hot shower to set you up for a successful day (or relax you after a stressful one). A neatly folded stack of freshly laundered clothes. The satisfying “cycle completed” ding of the dishwasher, delivering pristine plates you didn’t have to scrub by hand. If you’ve enjoyed any of the above, you have your water heater to thank. But is yours “thanking” you back by serving up bigger-than-necessary energy bills?
Water heaters are our second-largest users of home energy (after HVAC heating and cooling), according to the U.S. Energy Information Administration. In fact, nearly 20 percent of the average U.S. home’s energy cost comes from all that cleaning of things — your silverware, your sweatpants, yourself.
That’s why, if you’re thinking about replacing your water heater, you should consider upgrading to heat-pump technology, which can significantly reduce your electricity bill — while delivering plenty of hot water. Heat pump water heaters’ extraordinary energy efficiency is a main reason, according to Dan DiClerico, director of home improvement and outdoor at the Good Housekeeping Institute, that the Signature 900 66-Gallon Smart Hybrid Heat Pump Water Heater with Leak Detection and Automatic Shutoff from A. O. Smith won a Good Housekeeping Home Renovation Award. (It also comes in 50- and 80-gallon models.) Good Housekeeping also deemed the Signature 900 the best overall water heater, noting that it can save the typical homeowner close to $600 a year.
The Signature 900, available exclusively at Lowe’s, is what’s called a hybrid system, because it combines a conventional electric tank heater — the kind you’re probably most familiar with already — and a heat pump, which pulls energy from the air around it, by far the most efficient method of heating water. So efficient, in fact, that a heat-pump water heater’s higher up-front cost will be more than offset by your significant savings over time, DiClerico says.
You’ll also see more money in your pocket in the short term. The Signature 900 is Energy Star–certified, which qualifies homeowners for a federal tax credit of up to $2,000 under the Inflation Reduction Act. That’s cold cash for hot water. “Combined with the lower operating costs, the heater could pay for itself within a few short years,” DiClerico says. (You can also use A. O. Smith’s rebate finder, aosmithatlowes.com, to search by zip code for rebates that may apply to you.)
Fair warning, though: The federal tax credit will be available only until the end of 2025, due to recent legislative changes — “which is incentive to move quickly,” DiClerico points out. So do the math, and make your move now if possible.
The Signature 900’s money-saving powers are clearly significant, but it has other features that save you worry and hassle as well. “These are new, innovative machines, so they’re WiFi-connected and have all the benefits of that technology, including remote control and operation and monitoring through the smartphone app,” DiClerico says. “If you’re interested in tracking your energy consumption, it’s now a lot easier to do that." Plus, there are four operating modes, including a vacation mode to maximize energy savings while you're away from home.
The unit also offers integrated leak detection, so if your heater springs a leak, your phone will alert you, and a built-in shut-off valve will automatically turn off the water supply, potentially preventing a catastrophe. A leak is an unlikely occurrence, however, according to DiClerico. “This is a very well-built water heater,” he says. “The inside is ceramic, so it’s not going to rust and corrode nearly as quickly as a conventional one.” Still, there’s no such thing as too much peace of mind — which also makes the Signature 900’s 10-year warranty additionally welcome.
“If you take care of it, you could have this water heater for 20 or 25 years — around 10 years longer than a standard heater,” says DiClerico. “You’re potentially saving thousands and thousands in the long run.”