What the DOE water heater standards could mean for you

Most of us do not think much about our water heater until something goes wrong. When the time comes to replace one, though, the options available to homeowners may look different in the years ahead.

New federal energy-efficiency standards for residential water heaters are scheduled to take effect May 6, 2029. The standards apply to newly manufactured units and are intended to reduce energy use by requiring more efficient technology in many common water heaters.

One of the biggest changes will affect traditional electric storage water heaters. Under the new standards, most electric storage models larger than 35 gallons will need to meet efficiency levels generally achieved with heat pump technology. That means many of the 40-, 50- and 80-gallon electric resistance water heaters commonly used today may eventually be replaced in the marketplace by heat pump models.

Heat pump water heaters work differently from traditional electric models. Instead of relying entirely on electric resistance elements to create heat, they move heat from the surrounding air into the water. Most residential models are hybrid systems, meaning they use heat pump technology for everyday heating while still having traditional electric elements available when hot water demand is high or quicker recovery is needed. This allows the unit to use less energy while still providing dependable hot water.

For members who already have a water heater they are happy with, there is no reason to make a change because of the new standards. The requirements apply only to water heaters manufactured beginning in 2029. Existing units can continue to be used, repaired and replaced as needed with products that are available at the time.

CCEC’s water heating programs will also continue to be an important option for members. Grid-enabled electric water heaters with storage capacity greater than 100 gallons, that participate in CCEC’s demand response program, will be unaffected by this ruling. This program offers a lower electric rate in exchange for allowing qualifying water heaters to be temporarily controlled during periods of high electric demand. Because the tank stores hot water, members typically do not notice when control occurs.

Heat pump technology is continuing to evolve, including models that may support connected controls and future demand response opportunities. CCEC is evaluating how these products could fit into future programs, rebates, and rate options as the 2029 standards get closer.

If you are building a home, planning a renovation, or replacing a water heater, it is a good idea to talk with CCEC before making a purchase. Our Energy Services team can help explain current water heating options, available rates, programs, and incentives.

For more information, contact CCEC’s Energy Services team at 701-356-4400. CCEC will continue monitoring federal water heater requirements and product changes and will keep members informed as the new standards approach.