A new proposed rule from the Department of Energy (DOE) has plumbers and consumers alike wondering whether the agency is truly looking out for our best interests. At the heart of the debate is an abrupt, seemingly unbalanced push for higher efficiency standards on some types of water heaters, while others receive only a modest bump. Below is an overview of what’s happening, why it matters, and what you can do to make your voice heard.
Why the New Water Heater Rule Raises Concerns
The DOE recently proposed that non-condensing tankless water heaters, which currently achieve around 80% efficiency, must jump to an unattainable 91% efficiency. Meanwhile, traditional tank-style water heaters, hovering at about 65% efficiency, are only required to go up to 70%. Many see this as disproportionate, effectively sidelining a popular, more efficient option (non-condensing tankless) in favor of less efficient tanks or costly condensing units.
The Real-World Impact on Trades
Plumbers’ Bottom Line
Plumbers often earn more labor hours by installing tankless water heaters because of the extra steps involved (e.g., upsizing gas lines or adding venting). If non-condensing tankless models become unavailable, some plumbers lose a profitable option—and homeowners lose a straightforward upgrade path.
Homeowners’ Choices
Non-condensing tankless water heaters are typically priced similarly to traditional tank-style heaters but offer better energy use and a longer lifespan. The new rule could force many consumers, especially in mid-to-lower income brackets, back to tank heaters—meaning more frequent replacements, less energy savings, and fewer eco-friendly features like continuous hot water.
The Environmental Angle
More Tank Replacements
Tank heaters typically need replacing about twice as often as tankless units. Over time, that leads to more steel tanks winding up in landfills, and more energy consumed to manufacture, transport, and install each new unit.
Increased Carbon Footprint
Higher-efficiency standards should, in principle, mean reduced emissions. However, the minimal efficiency bump for tanks (from 65% to 70%) does little to change their substantial fuel use, especially when families pass on tankless due to cost barriers. The net effect may be more CO₂ output, not less.
What the DOE Is Supposed to Do
Established under President Carter, the Department of Energy’s original mission was to:
- Promote energy conservation
- Develop alternative energy sources
- Reduce reliance on fossil fuels
- Strengthen national energy security
Critics argue that this rule undercuts the goal of promoting efficient technology by pushing consumers toward cheaper but less efficient tank water heaters. This leaves many questioning whether the DOE’s draft rule truly supports its own objectives.
What You Can Do
If you believe these proposed standards are off-base, one option is to contact your local representatives. By clicking on the link that many industry groups and manufacturers like Rinnai are providing, you can send a message urging your senators and representatives to reconsider or revise this rule.
Sponsored by Rinnai
This topic is brought to you by Rinnai. Known for their tankless water heaters, Rinnai supports policies that advance efficient technologies while keeping them accessible to homeowners and professionals alike. Whether you’re a trade pro wanting to protect your business, or a homeowner hoping to save on your utility bills, Rinnai encourages you to stay informed and make your voice heard.
Final Thoughts
Raising efficiency standards across the board seems logical, but doing so in a way that favors lower-performing technologies undermines progress. Non-condensing tankless units already provide a big step up in efficiency compared to standard tanks, yet the new rule could sideline them from the market. If this concerns you—whether you’re an installer or a consumer—now is the time to speak up. The industry, the environment, and your wallet may all hang in the balance.
