As we’ve discussed in the past, due to new regulations regarding efficiency that went into effect April 16, water heaters have gone up in price this past year.
These new standards are hardly a new phenomenon however. Ever since the National Appliance Energy Conservation Act was passed in 1987, the government has set minimum efficiency standards for common household appliances.
The newest water heater standards mean most newly manufactured gas, oil and electric tank heaters will have to use less energy than before to heat the same amount of water. Tankless water heaters are subject to the new standards, too, but most already meet them.
So what does this mean for the consumer? Simply put, when you go to purchase your next water heater, you will likely end up paying more upfront.
There is a silver lining, however, as the new energy standards also mean that you will save more money in the long run. In addition, the earth will benefit from reduced demands on energy resources and lower greenhouse gas emissions.
So how much will these new standards likely save you the next time you go to buy a new water heater?
The most popular types of water heaters — 40-gallon gas water heaters and 50-gallon gas and electric models — will see the least change and manufacturers will likely meet the new standards by simply adding insulation or tweaking combustion.
According to the U.S. Energy Department, the new standards will raise the overall cost of buying and installing a 40-gallon gas water heater by $92 and a 50-gallon heater by $120. However, it also estimates that users will likely earn back what they pay upfront through savings over an average of 2.3 years.
So while this was certainly the winter and spring to purchase your new water heater early, even with the higher prices you are likely to break even due to the new, more stringent efficiency standards.
