Biden Energy Department Finalizes Rules on Water Heaters

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.

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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“Almost every U.S. household has a water heater, and for too long outdated energy efficiency standards have led to higher utility bills for families,” said U.S. Secretary of Energy Jennifer M. Granholm.

“The Biden-Harris Administration is continuing to put American consumers first with new, effective rules—supported by industry—that save both energy and money.”

The DOE admitted that heat pump water heaters have “higher initial costs” compared to conventional storage water heaters.

“Leave us alone. These products already exist in the free market. Consumers should decide whether the upfront cost of a heat-pump water heater is worth the possible long-term savings. In many cases, the monthly savings never make up for the upfront cost of the equipment,” Mr. Massie said in a July 22 X post.

“Heat-pump water heaters can save energy, but they make less sense in northern climates. That’s because they extract heat from the surrounding air … warm air that your furnace will have to work harder to replace. There’s ‘no free lunch’ from these water heaters in the winter.”

The lawmaker pointed out that heat pump water heaters take a “long time” to heat up a tank of water.

“DOE notes that production of electric heat pumps would need to increase substantially, at a level of three to four million additional heat pumps per year. However, DOE implies that this heat pump production would be electric heat pumps, as it earlier finds that gas-fired heat pumps are not available at scale,” they said.

“Consequently, DOE is seeking to promote the market for electric heat pumps at the expense of gas-fired water heaters, diminishing competition and profoundly affecting consumer choice.”

Manufacturers would have to make “very high” investments in a short period of time to comply with the energy standards. This could make some companies even “leave the market,” they warned.

Moreover, “DOE’s efforts will promote additional demand for electricity for water heaters at a time when the electric grid is suffering from a reliability crisis.”

In October last year, the DOE listed several appliances they intended to target over a one-year period with stringent energy standards, which included fan light kits, consumer water heaters, direct heating equipment, consumer boilers, fans and blowers, electric motors, furnace fans, microwave ovens, clothes dryers, and air cleaners.

DOE energy efficiency standards have already targeted pool pumps, battery chargers, ceiling fans, dehumidifiers, and gas stoves. The crackdown on home appliances has triggered strong reactions from lawmakers.

Rep. Stephanie Bice (R-Okla.) raised concerns about DOE energy efficiency standards on ceiling fans. In a letter to Ms. Granholm, she said the push to regulate appliances amounted to “significant overreach of the federal government.”

Such “heavy-handed regulations” would drive up prices, limit consumer choice, and impose burdens on many small businesses, she stated.

“Under the Biden Administration, the Department of Energy is unleashing an avalanche of new regulations for household products, including stoves, dishwashers, washing machines, showers, toilets, water heaters, air conditioners, heat pumps, and furnaces,” she said.

“My bill will stop federal bureaucrats from banning popular models of appliances and products in our homes and raising costs for middle-class families. I am proud to again stand on the side of choice for American consumers.”