Contractors, efficiency programs, and others are welcome to use these statements about the 2015 NAECA water heater standards. Contact: George Chapman Consortium for Energy Efficiency gchapman@cee1.org (617) 337-9262 Topic What has Changed? Summary Quote Most water heaters have changed slightly to improve insulation and save energy, but certain sizes now incorporate more advanced high efficiency technology. Product Line Changes Water heater manufacturers are responding to new federal standards by developing new technologies, updating their product lines and, in some cases, discontinuing certain models. Benefits The new federal standards ensure water heaters use less energy and save customers money on monthly utility bills. Models Affected The new standards apply to all residential storage and tankless water heaters that use gas, oil, or electricity as a heat source, but different styles are more affected than others. Commercial Models Commercial units, including light-duty commercial models occasionally installed in homes, are not affected by the higher standards. Product Changes: Moving Units Contractors should know that more insulation will mean slightly larger, heavier units that are harder to move and might not fit into existing tight spaces. Product Changes: Size In most homes, water heaters that are one to three inches wider will mean a tighter squeeze through doors. Where utility closets lack extra space for wider or taller units, installers may need to select a different model for replacement, such as choosing a tall- or short-style unit or selecting a smaller tank size. Product Changes: Larger Gas Models Some gas models with storage tanks larger than 55 gallons will use condensing technology that requires condensate drainage and special venting. Product Changes: Larger Storage Models Water heaters with storage tanks larger than 55 gallons will use electric heat pumps or gas condensing technology to heat water more efficiently. Space for Heat Pumps Heat pumps make hot water by concentrating heat from the surrounding air in the hot water tank. This typically requires an open-air connection to a 700–1,000 cubic foot space, such as a 10’ by 10’ room with 10’ ceilings. Larger Electric Models Electric models that store more than 55 gallons include heat pump technology that makes each unit five to seven feet tall. Installation These standards apply to manufacturers beginning April 16, 2015, but distributors and contractors are can still sell and install all existing stock. These new products will begin hitting shelves soon after the standards take effect. Customer Costs Most customers will see a modest increase in price that is more than offset by energy savings over the life of the unit. Costs for customers installing larger storage units will depend on where their water heater is located, and whether the location is suitable for a new high efficiency model. Tankless Models Nearly all tankless models already meet the higher standards so no changes are expected. Energy Factor Energy Factor is a measurement of how much energy is used to make hot water. The rating considers how each model heats and stores hot water, with higher numbers indicating better efficiency and less energy waste. New Ratings During 2015, EF ratings will be replaced by a new Uniform Energy Factor (UEF) that will better reflect water heater efficiency. Higher ratings will still indicate better energy efficiency. Installers: Impacts Contractors should be ready to explain these changes to their customers, and how a new high efficiency model can result in years of savings on energy bills. Installers: Benefits New technology such as heat pumps and condensing models will result in fewer DIY installations, and will lead to more opportunities for contractors who know how to properly install these units. Installers: Benefits The increase in high efficiency models, especially for products over 55 gallons, will lead to more high-margin installations. ENERGY STAR ENERGY STAR® qualified water heaters will continue to offer superior energy savings and reliability. ENERGY STAR: New Levels New ENERGY STAR® qualifications took effect at the same time as the new standard levels. ENERGY STAR: Recognition Criteria Gas, electric, and solar water heaters must meet strict performance criteria to earn ENERGY STAR® recognition.