Cala Systems, creator of highly intelligent heat pump water heaters that ensure comfort, save energy, reduce emissions, and integrate with the home, announced $5.6 million in seed funding and the commercial launch of its product. The round was led by the Massachusetts Clean Energy Center (MassCEC) and Clean Energy Venture Group, and included Burnt Island Ventures, Leap Forward Ventures, CapeVista Capital, Collaborative Fund and Climate Capital. Cala’s heat pump water heater (HPWH) is now available for preorder on its website, with initial deliveries expected in the first half of 2025.

Cala has developed a highly efficient and intelligent heat pump system that heats water based on the patterns of hot water use in each home and the preferences of the homeowner. By understanding each home’s hot water patterns, Cala improves hot water availability during times of high demand and minimizes costs. In addition, homeowners can tailor water heating to their home and priorities; including synchronizing water heating with the power output of their home solar system, minimizing their greenhouse gas emissions by coordinating water heating with times of clean electricity on the grid, decreasing costs for homes with variable electric rates, preheating water before potential power disruptions, and more.

To achieve this, Cala combines sensors and advanced hardware with patented predictive control software originally developed by the U.S. Department of Energy’s National Renewable Energy Laboratory (NREL). Cala’s predictive controls blend artificial intelligence and physics-based techniques, enabling the system to plan ahead for future hot water use, and whatever other inputs (home solar output, electricity price, etc.) the homeowner has activated in the Cala app. It also incorporates a variable speed compressor and an integrated mixing valve, which enable it to take full advantage of its predictive controls by increasing water heating efficiency and producing more hot water when beneficial.

Cala’s HPWH is poised to benefit both homeowners and installers with local, state, and federal incentives, including up to a 30% tax rebate through the Inflation Reduction Act. Cala will conduct final assembly in Massachusetts, bringing high-quality, green manufacturing jobs to the local economy.

“Heat pump water heaters are beginning to grow rapidly because of their enormous savings and greenhouse gas reductions,” said Michael Rigney, CEO and co-founder of Cala Systems. “Today’s heat pump water heaters are designed to deliver heat into the tank when the water is cold, a design that is virtually unchanged for the past 130 years. By contrast, our intelligent heat pump water heater is not only better at ensuring hot water is available and reducing cost, but also accounts for the other needs and goals of each homeowner. Cala is a superior way to heat water.”

Beyond developing and manufacturing its intelligent, efficient HPWH, Cala is also addressing obstacles to HPWH adoption by establishing a network of professional plumbers, electricians and HVAC contractors, as well as other partners, to support installation. To date, the company has already signed over ten Letters of Intent (LOIs) with installers.

Cala’s founders and senior team bring significant experience in the fields of consumer hardware, heat pumps, energy, and the built environment. Rigney has over 20 years of start-up experience at companies including EnerNOC, EnergySavvy and BlueTarp Financial. Vice President of Hardware and Co-Founder, Mike Ting, led hardware and product management teams as Bose and SharkNinja. Cala’s senior leadership and key advisors are drawn from prominent companies including Nike, Google, Nest, Span, Gradient, and James Hardie.

“Other heat pump water heaters leave both money and emissions savings on the table because they don’t use the core technology as effectively as possible. Cala’s unit is the only one that seamlessly integrates with the home and the customer’s lifestyle to deliver an exceptional experience and maximum savings. The team has done remarkable work,” said Tom Ferguson, General Partner at Burnt Island Ventures.

“Heat pump water heaters are an essential tool for meeting our climate goals, and Cala’s innovative design realizes their full potential to cut emissions while helping residents save money and improve comfort,” said Susan Stewart, Managing Director of Investments at Massachusetts Clean Energy Center. “MassCEC is thrilled to support the Cala team through our 2030 Investment Fund as they grow their business and create jobs in Massachusetts to meet customer demand across the country.”