AI Water Heater Ends Cold Showers and Reduces Carbon Emissions

Many have experienced the sudden shift from a hot shower to a cold one, often due to a mismatch between hot water supply and demand. Michael Rigney aims to solve this issue with AI technology, predicting household hot water needs and eliminating the need for expensive on-demand water heaters.

Rigney’s Journey to Innovation

Rigney began his journey a few years ago when he started researching water heating technology. “It was really eye opening,” he told TechCrunch in a recent interview. He discovered that the basic technology behind most gas and electric water heaters has remained unchanged for decades. While affordable to purchase, these heaters are expensive to run.

The Rise of Heat Pump Water Heaters

Heat pump water heaters have begun improving efficiency and lowering utility bills for homeowners. However, Rigney saw even greater potential for improvement. He founded Cala Systems in Boston in 2020, seizing the opportunity to develop the best heat pump water heater amid growing market interest.

How Traditional Water Heaters Work

Traditional water heaters are straightforward: an insulated tank, a heating element, and a thermostat. Users typically set the temperature once and forget it, occasionally adjusting it for guests. As hot water is used, cold water enters the tank, lowering the temperature and triggering the thermostat to reheat the water. Rigney considers this process antiquated and believes 2024 offers better solutions.

Cala Systems’ AI-Powered Water Heater

Cala Systems' water heater pairs an advanced heat pump with an AI-powered control system to forecast hot water demand and heat the water accordingly. The system gathers general information like weather forecasts and time-of-use energy pricing and combines it with household-specific data, such as water usage patterns and whether the home has solar panels and sends it to the water heater. That data is then analyzed on the device. Rigney assures that household data will never be sold.

Efficient and Predictive Heating

By analyzing water use patterns, the tank anticipates demand surges and heats water efficiently. For instance, if sunny days are forecasted followed by clouds, the AI might use solar power to overheat the tank, mixing hot and cold water later to maintain the desired temperature. This method maximizes solar energy usage, effectively turning the tank into an energy storage device for cloudy days.

In consistent weather and demand conditions, the AI can slow the compressor speed, improving heat transfer efficiency by about 30%. Cala also includes a boost mode for extra hot water when guests are present, activated via the tank or an app.

The Market and Environmental Impact

In the U.S., water heaters are split between natural gas and electric resistance, with heat pumps making up a smaller but growing market share. Water heating accounts for around 20% of household energy usage. Heat pump water heaters significantly reduce this and decrease reliance on natural gas, leading to lower carbon emissions.

Heat pump water heaters, although more expensive upfront, are cheaper to operate over time due to their efficiency. Incentives from the Inflation Reduction Act are helping to increase their market share.

Production and Pricing

Cala Systems plans to buy parts from various suppliers and assemble the water heaters in the U.S. The first product, a 65-gallon model, will cost $2,850 and is available for preorder with delivery expected early next year. Despite being $800 more than competitors, Rigney believes the lower utility bills will offset the initial cost difference over time.

Funding and Future Prospects

To support its rollout, Cala has raised a $5.6 million seed round led by the Clean Energy Venture Group and the Massachusetts Clean Energy Center, with participation from Burnt Island Ventures, CapeVista Capital, and Leap Forward Ventures. Rigney sees a significant opportunity to redefine expectations for water heaters, given the nascent stage of the heat pump water heater market.