The U.S. Department of Energy on Tuesday finalized new energy efficiency standards for several types of residential water heaters, in a rule it expects will generate more energy savings than any other appliance rule the agency has issued.
The new rule, which goes into effect in 2029, will save consumers about $7.6 billion annually on energy and water bills, DOE estimated. The amended standards “represent a moderate increase in efficiency for gas-fired, oil-fired and larger electric storage water heaters,” the agency said, and will require the most common-sized electric water heaters to achieve efficiency gains with heat pump technology.
The rule does not impact gas-fired instantaneous water heaters, but the agency said it is considering new standards for those products.
“Almost every U.S. household has a water heater, and for too long outdated energy efficiency standards have led to higher utility bills for families,” Energy Secretary Jennifer Granholm said in a statement.
DOE said the energy savings from the final rule will generate more than 17.6 quadrillion British thermal units of energy savings over 30 years, “the largest savings ever from a single DOE efficiency standard, representing more than the energy use of the entire U.S. residential building sector in a single year.”
Residential water heater efficiency standards were last updated in 2010. DOE’s Appliance and Equipment Standards Program is generally required to review energy efficiency rules for a broad range of products every six years, and the Biden administration has been making progress on a slate of overdue rules. In April, DOE finalized new energy efficiency standards for light bulbs, commercial rooftop heating and cooling units, distribution transformers and more.
The new water heater rules are expected to result in more than half of newly manufactured electric storage water heaters utilizing heat pump technology, compared to 3% today, DOE said.
“Water heaters are one of the largest energy users in our homes” and the new rules “are a significant win for consumers,” Courtney Griffin, director of consumer product safety at the Consumer Federation of America, said in a statement.
The standards for new water heaters will save many households about $170 each year on utility bills and are largely based on efficiency levels recommended by a coalition of manufacturers and consumer, energy efficiency, and environmental advocates, according to the American Council for an Energy-Efficient Economy.
Water heating is responsible for about 13% of annual residential energy use and consumer utility costs, according to DOE. The rule finalized Tuesday will provide savings of 10% relative to products currently on the market, the agency said.
“Saving this much energy has a big impact in reducing household costs and climate pollution. The icing on the cake is that this will reduce strain on the electric grid for a long time to come,” ACEEE Executive Director Steven Nadel said.
