Water heaters get tougher efficiency standards

New standards from the DoE increase the stringency of minimum conservation standards for three types of residential heating products, which account for about 18% of energy use in homes across the country. The standards will significantly reduce energy consumption by these products, says DoE, including decreasing energy use in large electric storage water heaters by 47% and by more than 30% in large gas water heaters. Standards for water heaters will go into effect in 2015, while the standards for pool heaters and direct heating equipment – including gas-fired wall, floor and hearth heaters – will apply to products manufactured in 2013 and beyond. 

DoE also figured the impact of the new regulations on manufacturers of the affected equipment. For makers of water heaters, for example, DoE estimates the industry net present value (INPV) to be $880 million for gas-fired and electric storage water heaters, $9 million for oil-fired storage water heaters, and $648 million for gas-fired instantaneous water heaters (all figures in 2009$). DOE expects the impact of the standards on the INPV of manufacturers of gas-fired and electric storage water heaters to range from a loss of 2.9 to 13.9%t (a loss of $25.9 million to a loss of $122.6 million).

DoE expects the impact of the standards on the INPV of manufacturers of oil-fired storage water heaters to range from a loss of 2.0 to 4.2% (a loss of $0.2 million to a loss of $0.4 million). DoE expects the impact of the standards on the INPV of manufacturers of gas-fired instantaneous water heaters to range from an increase of 0.4% to a loss of 0.2% (an increase of $2.3 million to a loss of $1.2 million).

At the amended standard level, DoE does not expect significant impacts on competition in the overall water heater market.

You can read the final ruling here:

http://www1.eere.energy.gov/buildings/appliance_standards/residential/pdfs/htgproducts_finalrule_notice.pdf