New Water Heater Standards for 2024

Water heaters are one of life’s daily necessities, being used in everything from washing and bathing to laundry and dishwashing. It accounts for nearly 20% of a residential home’s energy use in the US.

As such, the US Department of Energy (DOE) recently established new standards for water heaters. These are intended to improve energy efficiency, reduce carbon emissions, and ultimately save consumers money. These regulations mark a significant step forward in the country’s efforts to promote sustainable energy practices and combat climate change.

In this article, we discuss the new water heater standards and what it means for homeowners.

What are the new water heater standards?

In Apr 30, 2024 the DOE finalized Congressionally-mandated energy efficiency standards for residential water heaters in the US. The new standards are part of the Energy Policy and Conservation Act passed by the Biden administration.

The date of effectivity began on July 5, 2024 and will compel all consumer water heaters sold in the USA to follow the new rule by May 6, 2029.

The revised standards can be seen below:

According to the DOE, the revised standards reflect slight increases in energy efficiency for:

• Gas-fired residential water heaters
• Oil-fired residential water heaters
• Large electric storage residential water heaters

Note that it does NOT include gas-fired instantaneous water heaters.

The water heater efficiency standards were last updated in 2010. The DOE says it is mandated to update energy efficiency rules for a broad range of products every six years.

What are the benefits of the new water heater standards?

According to the American Council for an Energy-Efficient Economy, the increased efficiency standards can save US households about $170 a year on water heating bills.

Over 30 years, it is estimated to save Americans $124 billion on utility costs, while reducing the carbon dioxide emissions of up to 43 million homes annually.

What does this mean for consumers?

The revised standards are designed to encourage homeowners to shift to electric heat pump water heaters. 

According to the Energy Department, replacing conventional water heaters with an electric heat pump equivalent can save up to $1,800 off water heating costs over the life of the heater.

Should I replace my water heater now?

Not necessarily. Water heaters have an average operational lifespan of 10 years. If you recently purchased one, there is no need to replace it until 2029.

However, if you have an older water heater or you’re looking to buy a new one, now is the best time to purchase an electric heat pump water heater that follows the new standard. Doing so future-proofs your investment and saves you on water heating costs in the long run. 

In addition, the Inflation Reduction Act provides $4.5 billion in rebates for households to buy new energy-efficient appliances, including qualifying water heaters.

What is the Inflation Reduction Act and how can I take advantage of it for my new water heater?

Passed in 2022, the Inflation Reduction Act is an energy policy bill that provides incentives for consumers and businesses to follow energy saving initiatives. 

For homeowners, it provides tax credits for purchasing new appliances that are Energy Star-certified, as well as Consortium for Energy Efficiency-specified.

For water heaters, homeowners can get up to 30% tax credit on installation costs for the highest efficiency tier water heaters:

• Up to $600 for gas-fired tankless water heaters with UEF rating greater than or equal to .95, capped at $1,200 per year. 
• Up to $600 for gas-fired storage water heaters with UEF greater than or equal to .86, capped at $1,200 per year.
• Up to $2,000 for heat pump water heaters with UEF more than or equal to 2.2 for 120V, and greater than or equal to 3.3 for 240V models

The act also provides 30% tax credit for solar water heaters and their installation costs, provided they don’t exceed the person’s regular tax liability for the year. However, any unused tax credits may be carried forward and used in the next taxable year.

Each state will establish its own rebate program as well as who qualifies based on income. For some jurisdictions, those who earn below 80% of the area’s average income may see all of their costs covered, while those earning between 80% to 150% of an area’s income can have part of their expenses covered.

Our Recommended Energy-efficient Water Heaters

Electric storage water heater:

GE GE50T12BLM 50 Gallon Tall Electric Water Heater with Built-in WiFi – 240 Volt

This 50 gallon electric water heater features two 5,500W elements that uses 240V electricity. It is 22″ in diameter and is 62-1/4″ high (63-3/4″ to top of water inlet/outlet connections).

It has a First Hour Rating or First Hour Delivery of 78 gallons, enough to provide hot water for a family of 3 to 5 persons. It boasts a .93 Integrated Energy Factor, which measures the energy efficiency of the hot water heater. The higher the energy factor, the more efficient the water heater.

Finally, this hot water heater has built-in WiFi which gives you the ability to set vacation schedules and adjust temperatures without having to go down into the basement!

Electric heat pump water heater (entry-level):

Bradford White RE2H50S6-1NCTT 50 Gallon AeroTherm Heat Pump Water Heater with Microban Technology – 208/230 Volt

This 240V 80 gallon AeroTherm Heat Pump hot water heater is Energy Star Rated and offers you an efficient way of getting hot water year round. It measures 60-3/4 inches high from the floor to the water connection with a 21-3/4″ jacket. It has 2″ of non-CFC foam insulation covering the sides and top of the tank, reducing heat loss, resulting in less energy consumption, improved operation efficiencies and jacket rigidity

It includes 4 operating modes – heat pump mode, hybrid mode, electric mode and vacation mode.The Heat Pump Only mode maximizes your savings and is the most efficient, while Hybrid mode is the factory setting with which your water heater will be delivered. It combines both the Heat Pump efficiency and savings with electric recovery when necessary. There’s also an Electric Only mode that operates as a regular electric hot water heater without the airflow and sound you might experience in the heat pump mode. It also offers the fastest recovery time. 

For energy savings, there’s also a Vacation Mode where the set point is adjusted down to 50° for extended periods of time so no savings are wasted!

Electric storage water heater with flexible capacity:

GE GE50S10BMM 50 Gallon Electric Water Heater with Flexible Capacity 240 Volt

This 50 gallon real capacity hot water heater boasts a flexible capacity of up to 80 gallons. Flexible Capacity gives you the option of choosing from three capacity settings to enjoy up to 60% additional hot water when you need it versus comparable water heaters, without mixing a valve at 120°F set and 58°F water temperature.

When activated, the heater stores your hot water at higher temperatures. Three settings, based on 120°F default outlet temp, include Normal – no increase in hot water capacity, High which increases water capacity up to 40% and X-High which increases hot water capacity up to 60%.

It has a First Hour Delivery of 75 gallons and a UEF of  0.93. The tank measures 24″ in diameter and 59-1/2″ high (61″ to top of water inlet/outlet connections). 

Future-proof your water heater today

At Total Home Supply, we carry energy efficient water heaters covering both tankless and storage models. Check out our Energy Star-certified selection of water heaters today to save on heating bills while saving the environment.

Also check out our related guide to Water Heater Efficiency, featuring a list of highly efficient water heaters.