What is the National Appliance Energy Conservation Act of 2015, and how does it affect my water heater?

The National Appliance Energy Conservation Act (NAECA 3) of 2015 took effect on April 16th, of 2015. NAECA 3 improves the energy efficiency of new water heaters and other appliances. The new water heater regulations are only applicable for:

• Gas
• Propane
• Oil
• And Electric water heaters

According to the U.S. Energy Information Administration, water heaters account for an estimated 18% of energy consumption in households. Homeowners who have a new efficient water heater installed will see the savings through their utility bills, and within the first 5 years of owning the water heater they will save the equivalent of the installation of the water heater.

Pre NAECA 3, a new water heater plus installation was estimated around $900. Now, with the new NAECA 3 regulations, a new water heater plus installation runs an estimated $1250 and up.

Why the increase in cost?

The new water heaters are more expensive and they take longer to install. Along with the increase in price, the new water heaters stand an estimated 2 inches taller (height) and are 2 inches and up in diameter (width).

What does this mean for me?

The new size of the water heaters do not affect the vast majority of homeowners. Unfortunetly, there are some homeowners this will affect. Meaning, where a 40 gallon water heater used to fit, the new models will be too tall and too wide. There are multiple options available if this situation occurs.