Know new federal regulations on water heaters
On April 16, 2015, there will be significant updates to water heater energy factor (EF) requirements as the result of updates to the National Appliance Energy Conservation Act (NAECA). The new requirements call for higher Energy Factor (EF) ratings on virtually all residential gas and electric water heaters.
Updates to NAECA are nothing new. According to the U.S. Department of Energy (DOE), manufacturers have been required to comply with energy conservation standards for residential water heaters since 1990. The last update occurred in 2004.
A decade ago, 25 percent of home energy dollars typically went to heating water. Today the Department of Energy claims water heating accounts for about 18 percent of utility bills. New regulations are expected to reduce percentages even more.
If you own a standard water heater that is at least 10 years old, you have some decisions to consider before the new regulations take effect.
Most water heaters typically last 10-15 years; less, if you aren’t properly maintaining them. The new high-efficiency models could present an issue for homes with water heaters in small utility closets or other tight spaces because the new water heaters will be taller and larger in diameter. That means some homeowners may have to make structural modifications to their home in order for the new water heater to fit. Structural modifications, of course, cost money.
In addition, newer models likely will cost more because they are more complex. Electric 55-gallon units will likely utilize heat pump technology, for example. How much more, however, is really unknown at this point, but will likely depend on the type and size of water heater.
On the other hand, the energy savings from the new technology are expected to be dramatic and can help offset some of the product and installation costs.
Homeowners considering the purchase of a new water heater have two choices. Buy a new water heater now and save a little bit more on the upfront costs, or purchase a newer, costlier model that offers much greater energy efficiency.
Bottom line: If your water heater is more than 10 years old, it may be time to consider purchasing a new unit. Know your options. At the very least, you should get your current unit inspected by a professional. You can find one through BBB’s directory of Accredited Businesses available at www.bbbhouston.org.
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