DOE proposes new energy-efficiency standards for gas furnaces

The U.S. Department of Energy (DOE) has proposed new energy-efficiency standards for residential gas furnaces that will reduce greenhouse gas emissions and save consumers billions annually on their energy bills.

Under the proposal, non-weatherized gas furnaces and those used in mobile homes would be required to achieve an annual fuel utilization efficiency of 95 percent. These efficiency improvements would save consumers $1.9 billion annually and, over 30 years, reduce carbon emissions by 373 million metric tons and methane emissions by 5.1 million tons. Gas furnaces account for approximately 15 percent of annual U.S. residential energy use. This is the equivalent of what 61 million homes emit each year.

“By updating energy standards for many carbon-emitting appliances, such as home furnaces, the Biden administration is working to save consumers money,” U.S. Secretary of Energy Jennifer Granholm said. “These efficiency measures not only reduce carbon and methane emissions, but also provide huge material benefits to American households in the form of cleaner air, modernized technology, and cheaper energy.”

Achieving an annual fuel utilization efficiency of 95 percent would mean taking almost all of the gas used by the furnaces and turning it into heat provided to the living space. Modern condensing furnaces make this standard achievable for every American home. A consumer that installs a furnace meeting the proposed new standard, replacing a non-condensing, inefficient furnace, will save $60 on their utility bills annually. The DOE expects the new rule to save consumers a cumulative $30.3 billion over 30 years.

If adopted, the new rule will come into effect in 2029. It is part of an initiative by the Administration to save the average family $100 a year on energy.

The Biden administration is also looking to improve the accessibility and affordability of heat pumps to heat and cool households. Last week, President Joe Biden invoked the Defense Production Act (DPA) to rapidly expand American manufacturing of five critical clean energy technologies, including heat pumps. This will reduce reliance on foreign nations like Russia for oil and gas and expedite the installation of heat pumps across homes and other buildings.