Biden Energy Department Finalizes Rules on Water H

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Critics have said the federal administration’s energy initiatives are ‘diminishing competition and profoundly affecting consumer choice.’

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The Biden administration has mandated energy standards that effectively force electric water heater manufacturers to switch to heat pump technology, raising concerns about the high upfront cost of such heaters and viability in colder climates.
On Tuesday, the U.S. Department of Energy (DOE) finalized energy efficiency standards for electric water heaters, requiring manufacturers to use heat pump technology in the appliances. Manufacturers have to comply with the new standards beginning in 2029, which will make over 50 percent of newly manufactured electric storage water heaters use heat pump technology compared to just three percent at present. The new standards will “accelerate” the adoption of heat pump water heaters across the country, the agency stated.
Traditional electric water heaters work by using certain electric heating components. In contrast, water heaters with heat pumps work by pulling up heat from the surrounding air and transferring it at a higher temperature to heat water in a storage tank. Heat pumps basically function like an air conditioner but in reverse.

According to the DOE, heat pump electric heaters can be two to three times more energy efficient than traditional appliances. The new rule aims to shift people to use electric heaters based on heat pumps, which the DOE claims would “save American households approximately $7.6 billion per year on their energy and water bills.”

“Replacing common-sized traditional electric resistance storage water heaters with electric heat pump water heaters meeting the new standards would save consumers approximately $1,800 on their utility bills, on average, over the life of the appliance.”

The DOE is also deliberating amended standards for gas-fired instantaneous water heaters, which the new standards do not address.

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