Contact: Ben Somberg, 202-658-8129, bsomberg@aceee.org
Washington, DC—A resolution passed by the U.S. Senate today to cancel energy efficiency standards for new gas tankless water heaters will increase monthly bills for households that choose these models.
“American families are going to face higher bills because the Senate sided with a group of gas utilities and one particular manufacturer,” said Andrew deLaski, executive director of the Appliance Standards Awareness Project. “This is going to keep an outdated version of this technology on the market, with homeowners and renters paying the cost.”
The resolution, which passed in the House in February, now heads to the president’s desk.
The standards at issue, which the Department of Energy (DOE) completed last year and were set to take effect in 2029, require new gas tankless (also known as instantaneous) water heaters to use about 13% less energy than today’s least efficient models. They would reduce a household’s total costs by an average of $112 over the life of the product when compared to purchasing and using less-efficient tankless models, DOE found. Consumers would cumulatively save $3.1 billion in total.
About 60% of new tankless units sold today already meet the standards, and all major water heater manufacturers sell such models. Since tankless models are only a small portion of all gas water heaters, the standards would affect less than 10% of all gas water heaters sold.
The standards—due six years ago by law—are based on efficiency levels recommended by a coalition of product manufacturers and consumer, energy efficiency, and environmental advocates. They complement strengthened standards DOE finalized earlier last year for more common electric tank and gas tank water heaters.
The manufacturer that has lobbied against the standards for tankless models, Rinnai, estimated to DOE that it would cost $15 million to retrofit a plant that produces models that do not meet the standards. Rinnai has suggested it would invest to “retool” the plant. In 2024, the company earned about $250 million in profits and had close to $1 billion in cash on hand. The company, together with gas utility trade associations, has also sued to try to block the standards.
More information about the gas tankless water heater standards is available in an ASAP fact sheet and myths and facts document.
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