Cala Systems raised $5.6 million to optimize water heating in US homes with AI

Cala Systems, a Boston-based startup working on redefining water heating with its innovative AI-powered heat pump water heater, recently emerged from stealth with $5.6 million in seed funding. The funding round was led by Clean Energy Venture Group and Massachusetts Clean Energy Center, with participation from Burnt Island Ventures, CapeVista Capital, and Leap Forward Ventures.

Although the US market is dominated by natural gas and electric resistance water heaters, heat pump water heaters are becoming increasingly popular due to their efficiency. Although the initial investment is higher than for other kinds of heaters, the savings in energy consumption and the independence from natural gas quickly compensate for the steep price tag. Additionally, the incentives offered by the Inflation Reduction Act have contributed to the rising popularity of heat pump water heaters.

Seeing this as an opportunity, Michael Rigney founded Cala Systems to optimize heat pump water heaters further using AI algorithms that analyze water use patterns to predict surges in hot water demand and optimize energy consumption. The system analyzes weather forecasts, energy pricing, household water usage patterns, and even solar panel integration to make intelligent heating decisions.

Cala System's first product, a 65-gallon model, will cost $2,850 and be available for delivery in early 2025. The recent investment will support production, ensuring the company can complete its plan of buying parts from suppliers and assembling the final product in the US.