DOE proposes new energy efficiency standards for water heaters
New energy efficiency standards for water heaters proposed by the U.S. Department of Energy (DOE) are expected to save consumers $11.4 billion on their energy and water bills annually.
The proposal would require common-sized electric water heaters to achieve efficiency gains with heat pump technology while gas-fired instantaneous water heaters would achieve efficiency gains through condensing technology.
Water heating is responsible for about 13 percent of both annual residential energy use and consumer utility costs. These standards would reduce energy use from residential water heaters by 21 percent, which translates into $11.4 billion in consumer savings and $2.8 billion in health benefits each year.
Over the course of 30 years, these standards are expected to save Americans approximately $198 billion and reduce 501 million metric tons of carbon dioxide emissions — roughly equivalent to the combined annual emissions of 63 million homes.
“Today’s actions—together with our industry partners and stakeholders—improve outdated efficiency standards for common household appliances, which is essential to slashing utility bills for American families and cutting harmful carbon emissions,” U.S. Secretary of Energy Jennifer Granholm said. “This proposal reinforces the trajectory of consumer savings that forms the key pillar of Bidenomics and builds on the unprecedented actions already taken by this Administration to lower energy costs for working families across the nation.”
DOE last updated residential water heater efficiency standards in 2010. If adopted and finalized, the new standards would apply to new water heater models starting in 2029.
Replacing common-sized traditional electric resistance storage water heaters with electric heat pump water heaters would save consumers $1,868 on average over the life of the appliance. The Inflation Reduction Act expanded the accessibility and affordability of heat pump water heaters through tax credits, rebates, and other incentives.
Separate standards would raise the minimum efficiency levels for gas-fired storage water heaters, gas-fired instantaneous water heaters, and oil-fired storage water heaters based on technology improvements for those products.
The new proposed standards align with recommendations from stakeholders, including two of the largest water heater manufacturers, along with the Consumer Federation of America.
Collectively, the DOE’s past and planned energy efficiency actions under the Biden-Harris Administration will save Americans $570 billion and reduce greenhouse gas emissions by more than 2.4 billion metric tons cumulatively over 30 years.
