Cala Systems, a manufacturer of highly intelligent heat pump water heaters that ensure comfort, save energy, reduce emissions and integrate into the home, today announced the raising of $5.6 million in seed funding and the launch of its product. The Massachusetts Clean Energy Center (MassCEC) and Clean Energy Venture Group led the funding round, with participation from Burnt Island Ventures, Leap Forward Ventures, CapeVista Capital, Collaborative Fund and Climate Capital.

Cala’s heat pump water heater (HPWH) is now available for pre-order on the website, with first deliveries expected in the first half of next year.

Cala has developed a highly efficient and intelligent heat pump system that heats water based on each household’s hot water usage patterns and the homeowner’s preferences. By identifying each household’s hot water usage patterns, Cala improves hot water availability during periods of high demand and minimizes costs. In addition, homeowners can customize hot water heating to their home and priorities, for example by synchronizing hot water heating with the power output of their solar system, minimizing their greenhouse gas emissions by timing hot water heating to times of clean electricity on the grid, reducing costs for households on variable electricity tariffs, preheating water before potential power outages, 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 combine artificial intelligence and physics-based techniques, allowing the system to plan for future hot water usage and any other inputs (home solar output, electricity price, etc.) that the homeowner has enabled in the Cala app. It also includes a variable speed compressor and integrated mixing valve, allowing it to take full advantage of its predictive controls by increasing water heating efficiency and producing more hot water when needed.

Cala’s HPWH will offer local, state and federal incentives to homeowners and installers, including a tax rebate of up to 30% through the Inflation Reduction Act. Cala will perform final assembly in Massachusetts, bringing high-quality, environmentally friendly manufacturing jobs to the local economy.

In addition to designing and manufacturing its smart, efficient HPWH, Cala is also addressing barriers to HPWH adoption by building a network of professional plumbers, electricians and HVAC installers, as well as other partners to support installation. The company has signed over ten letters of intent (LOI) with installers to date.

Cala’s founders and leadership team bring extensive experience in consumer hardware, heat pumps, energy, and the built environment. And CEO and co-founder Michael Rigney has over 20 years of startup experience at companies like EnerNOC, EnergySavvy, and BlueTarp Financial. VP of Hardware and co-founder Mike Ting led hardware and product management teams like Bose and SharkNinja. Cala’s leadership and key advisors come from notable companies like Nike, Google, Nest, Span, Gradient, and James Hardie.

KEY QUOTES:

“Heat pump water heaters are growing in popularity due to their tremendous savings and greenhouse gas reduction. Today’s heat pump water heaters are designed to release heat into the tank when the water is cold. This design has remained virtually unchanged for 130 years. In contrast, our smart heat pump water heater is not only better at ensuring hot water availability and reducing costs, but also takes into account the other needs and goals of every homeowner. Cala is a superior way to heat water.”

• Michael Rigney, CEO and co-founder of Cala Systems

“Other heat pump water heaters miss out on both cost savings and emissions savings because they don’t use the core technology as effectively as possible. Cala’s unit is the only one that integrates seamlessly into the customer’s home and lifestyle, providing an exceptional experience and maximum savings. The team has done a remarkable job.”

• Tom Ferguson, general partner at Burnt Island Ventures

“Heat pump water heaters are an essential tool to help us meet our climate goals, and Cala’s innovative design unlocks their full potential to reduce emissions while helping residents save money and improve comfort. MassCEC is excited 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.”

• Susan Stewart, managing director of investments at the Massachusetts Clean Energy Center