Tankless water heaters became an attractive alternative to conventional tank units: They deliver an endless supply of hot water while using a fraction of the energy.
According to the Free Beacon, the new regulations aim to reduce carbon dioxide emissions, a move aligned with broader climate change mitigation efforts. However, the regulations are set to remove approximately 40% of the current tankless water heater models from the market by 2029 (between gas and electric). This shift is expected to force consumers to opt for either more expensive or less efficient alternatives.
An industry analysis forecasts that the average cost increase for new water heaters due to the regulations will be around $450. This price hike is poised to disproportionately affect low-income and senior households, who are among the most reliant on the more affordable models currently targeted for phase-out.
Meanwhile, the timing of these regulations is noteworthy - coming in the wake of President-elect Donald Trump's electoral victory over Vice President Kamala Harris. Trump has expressed intentions to roll back many of Biden's climate initiatives to bolster energy production and stimulate economic growth. This regulatory push on water heaters is part of a series of actions targeting household appliances, including gas stoves and refrigerators, aimed at reducing carbon emissions and promoting electric alternatives.
Ben Lieberman, a senior fellow at the Competitive Enterprise Institute, criticized the move, stating, "It bans an entire category of tankless water heaters and the ones that are most affordable. This is all part of the climate change agenda...an antipathy towards natural gas because they want to electrify everything."
Industry's Response and Legal Challenges
The regulation has sparked extensive debate about its legality and practicality. The American Gas Association has hinted at possible legal action, suggesting that the rule might violate the Energy Policy and Conservation Act, which prohibits banning products that offer unique performance characteristics.
Frank Windsor, president of Rinnai America, the nation's leading manufacturer of tankless water heaters, voiced strong opposition. He highlighted the contradiction in eliminating higher-efficiency product categories- telling the Beacon, "If you really want to impact the water heating ruling, you really need to deal with the tank models." Rinnai America, having invested $70 million in a new facility in Georgia based on the previous administration's manufacturing incentives, finds itself at risk of seeing its investment become obsolete under the new rules.
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I'll tell an anecdote however....I recently had to replace an electric hot water heater.....the heater itself was like $450 I think......when I inquired about installation they quoted price was something ridiculous like $2000.....I'm sure they assumed they had to bring things "up to code".....I said fuck that - with the help of my neighbor, a fella worked for that billionnaire who owned the Holiday Inn hotel conglomerate - he and I put the new hot water heater in ourselves - and it has works like a charm.
Installation cost - $0.
That is what industrious folks do - and fuck all the rules. Most of em are in place only to enrich others....