New Water Heater Efficiency Regulations To Be Implemented

By April of 2015, standard storage tank water heaters will manufactured to high efficiency standards with more insulation. While the water heaters will save money during its lifespan, it will cost consumers more in the initial installation.

Taking a look at a 40 gallon heater, the typical cost to operate the old styled water heater is $277 per year. Looking at the new water heaters, the estimated cost to operate will drop to $263, giving homeowners a $14 per year savings.

The change to construction of the new water heaters makes them larger and it could make them more difficult to install.

“Basically, it’s just going to be more insulation,” Sembower said. “The insulation in these tanks is blown in. It’s polyurethane and it forms around the inner steel tank. So, in this tank there’s just more of it, more on the top more on the sides.”

An older-model tank costs about $530 installed. The new models could be between $600 and $700 installed.


water heater efficiency regulationsIf we assume the installed price of the newer models is $600, the break even point is 5 years. Looking at the upper range of the installation costs, the break even point is 12 years. Unfortunately, your new 2015 water heater may already be replaced prior to breaking even as many water heaters do not last longer than 10 years.

Our vewipoint on this: If you need to get your water heater replaced, do so prior to April 2015 and save yourself some cash!