Water Heater Standards Set to Slash Bills and Pollution

Washington, D.C. - One of the biggest energy users in most homes will be significantly more efficient thanks to improved standards finalized by the Department of Energy (DOE) today. The standards for new water heaters will save many households about $170 each year on utility bills and avert 332 million metric tons of carbon dioxide emissions over three decades of sales, according to DOE.

The standards-due six years ago by law-are largely based on efficiency levels recommended by a coalition of manufacturers and consumer, energy efficiency, and environmental advocates. The new standards will take effect in 2029.

Steven Nadel, executive director of the American Council for an Energy-Efficient Economy, said: "Water heating is one of the biggest energy uses in most homes, and these standards are going to cut that demand significantly. 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."

Andrew deLaski, executive director of the Appliance Standards Awareness Project, said: "The technology for water heaters has advanced dramatically, and the standards have not kept up. Stakeholders came together and recommended efficiency levels that will reduce energy use significantly and yield big cost savings. This is going to move much of the electric market from decades-old technology that costs a lot to run to heat pump units that use less than half as much energy."

Margie Alt, director of the Climate Action Campaign, said: "The newly finalized hot water efficiency standards will cut more than 300 million metric tons of climate pollution and save families about $170 per year on their utility bills. These new Solutions for Pollution will deliver serious benefits to families and our environment, and for that President Biden and Secretary Granholm deserve serious thanks."

Courtney Griffin, director of consumer product safety at the Consumer Federation of America, said: "The new water heaters standards are a significant win for consumers. Water heaters are one of the largest energy users in our homes. The new standards allow for a shift to more-efficient technology. This means that consumers can expect considerably reduced energy bills."

Johanna Neumann, senior director of the Campaign for 100% Renewable Energy at Environment America Research & Policy Center, said: "The cleanest energy is the energy we never need to use in the first place. We all use hot water, so we'll all benefit from the energy savings and pollution reductions that this rule provides. By embracing a transition away from outdated, inefficient water heaters, the Biden administration is delivering Americans lower utility bills and cleaner air to breathe."

Becca Yates, executive director of the Northwest Energy Efficiency Alliance, said: "The new federal consumer water heating standard is a stellar example of how long-term collaboration between utilities, manufacturers, trade allies, efficiency organizations, and consumer advocates can deliver lasting market change leading to tremendous energy savings for all Northwest customers. The alliance will continue to collaborate with the market to bring this standard to its fullest potential to ensure affordable and reliable hot water energy-efficient solutions for residential, multifamily, commercial, and industrial customers."

Joe Vukovich, NRDC (Natural Resources Defense Council) staff attorney, said: "This move will save energy, lower utility bills for consumers, and reduce climate-warming pollution. The efficiency standards program is one of the strongest tools we have in fighting the climate crisis and on average efficiency standards cut household utility bills by $500 a year. These long-overdue standards will help facilitate wider adoption of climate-friendly efficient heat pumps and ensure Americans are not forced to rely on outdated and inefficient technology."

Residential water heater standards-last updated in 2010-set separate minimum efficiency levels for different classes of models, including electric tank water heaters, gas-fired tank water heaters, and gas-fired instantaneous ("tankless") models. The single-largest impact will come from the strengthened standards for electric tank models; most models will use less than half as much energy as most of today's by using proven heat pump technology. The agency did not finalize new standards for the tankless models, saying today it is still considering comments regarding updating standards for those products.

More information on the standards is available in a new Appliance Standards Awareness Project fact sheet

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