Innovative AI-Powered Water Heater Revolutionizes Hot Showers and Reduces Carbon Emissions

Ibrahim Awotunde

Many of us have experienced the frustration of a hot shower turning cold unexpectedly, often due to simultaneous household water usage. Michael Rigney aims to solve this issue with a groundbreaking approach to water heating that anticipates hot water demand and eliminates cold showers without resorting to costly on-demand water heaters.

Rigney’s journey began a few years ago when he delved into water heating technologies. He found that the basic design of most water heaters, whether gas or electric, had not evolved significantly over several decades. Although these heaters are relatively inexpensive to purchase, they are costly to operate. Heat pump water heaters have emerged as a more efficient alternative, reducing utility bills for many homeowners. However, Rigney saw further potential for innovation.

In 2020, Rigney founded Cala Systems in Boston, recognizing a growing market for heat pump water heaters. He identified an opportunity to develop the most advanced heat pump water heater available. Traditional water heaters consist of three primary components: an insulated tank, a heating element, and a thermostat. Typically, users set the temperature and forget about it, with the heater activating as needed to maintain the set temperature.

Cala Systems’ water heater incorporates an advanced heat pump and an AI-powered control system that predicts hot water demand. The system collects general data, such as weather forecasts and energy pricing, and combines it with household-specific information like water usage patterns and the temperature of incoming cold water. By analyzing these factors, the water heater optimizes its heating process for maximum efficiency.

For example, if sunny weather is forecasted before a few cloudy days, Cala’s algorithms might use solar power to preheat the tank, mixing hot and cold water to reach the desired temperature when needed. This method allows the heater to store excess solar energy for use during cloudy periods. Additionally, the heater can slow down the compressor when demand is consistent, enhancing heat transfer efficiency by about 30%.

To accommodate sudden increases in demand, such as when guests arrive, Cala’s water heater features a boost mode that can be activated via the tank or an app.

Currently, water heaters in the U.S. are divided almost equally between natural gas and electric resistance, with a small percentage using oil, propane, and heat pumps. Water heating accounts for about 20% of household energy use, and heat pump water heaters significantly reduce this consumption and reliance on natural gas. Though heat pump water heaters occupy a minor share of the market, their popularity is growing, spurred by incentives from the Inflation Reduction Act. Despite higher initial costs, their efficiency results in long-term savings and lower carbon emissions.

Cala Systems plans to source components from various suppliers and assemble the final product in the U.S. Their first model, a 65-gallon water heater priced at $2,850, is available for pre-order with delivery expected early next year. This price point is about $800 higher than competitors, but Rigney asserts that lower utility bills will offset this difference over time.

To support its launch, Cala has secured $5.6 million in seed funding from investors including the Clean Energy Venture Group and the Massachusetts Clean Energy Center. Rigney believes there is significant potential to redefine consumer expectations of water heaters, given the limited market penetration of heat pump water heaters to date.