Here’s why: starting April 16, 2015, new federal regulations mandate higher energy standards for domestic water heaters. The new Department of Energy (DOE) regulations apply to manufacturers and sellers of the water heaters, but homeowners will be the ones really feeling the pinch – make that a PUNCH!
The new standards have forced manufacturers to adopt technologies that are likely to increase the price of water heaters and their installation significantly. Large water heaters of 55 gallons and above may double or triple in price, according to some industry observers. In some cases the only way manufacturers can meet the new standards is to incorporate heat pump technology into their water heaters. This involves massive re-engineering and retooling.
The new standards do not require homeowners to replace their current water heaters, but as time passes you will only be able to buy units meeting the new DOE efficiency standards. Some of the extra cost will be recouped in energy savings, eventually, but an analysis of the DOE’s published documents makes that questionable. In most cases the savings amount to less than a couple of dozen bucks a year, with payback periods as long as 10+ years.
Industry statistics show that the average storage tank water heater lasts 10-15 years. If yours is at the outer edge of that life span, even if it is in good working order, this is a good time to consider replacing it now. In addition to paying more money in the years ahead, you will be forced to try out new technology that has been rushed into the marketplace and may well have a few bugs to be worked out. Also, water heaters compliant with the new standards will be larger and may not fit in the space your water heater now occupies, leading to more headaches.
The new regulations allow sellers of water heaters to deplete their inventories of pre-2015 models before taking on the new high-efficiency units. This means that homeowners may still have access to some older units after April 16. As time passes those older models will become harder and harder to find, and their prices are likely to go up accordingly.
This may also be a good time to consider a tankless water heater. Tankless water heaters do not store hot water but heat it on demand. They boast efficiencies of up to 96% and for the most part already meet the new federal regulations. Many models are also eligible for energy-efficiency rebates to help lower their installation cost.
Give us a call to review your options, but don’t wait too long. April 16th is only a month away.
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