Industry Changes Continue Decades Later

 

Nonetheless, the act has been changed many times since it was first put into place by the United States Congress and former President, Gerald Ford. The last change took place in April 15th, 2015, and it has already dramatically changed the hot water heater sales and installation industry nationwide.

 

The U.S. Department of Energy (DOE), as part of the National Appliance Energy Conservation Act (NAECA), issued Final Rule energy efficiency mandates in April 2010. While these mandates only apply to products manufactured for sale in the U.S., Canada will soon implement similar increases in efficiency standards. These far-reaching new requirements will have important impacts on water heating manufacturers, distributors, contractors and homeowners.

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40 Gallon NG water heater prior to April 16th. 2015, energy factor (EF) rating was an average 0.58 EF

40 Gallon NG water heater After to April 16th. 2015, energy factor (EF) rating must be above 0.62 EF

40 Gallon NG ENERGY STAR water heater starts at 0.67 EF and above.

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How Much Can I Save? Let's Do the Math

Let's take a look PG&E published in 2017 Sacramento County pays on average $1.59 per therm of natural gas.

 

New standard 40 gallon natural gas (NG) water heaters cost is $550 and must have 0.62 EF or higher, most are at 0.62 EF, this water heater uses an average of 242 therms per year for a family of four (4), this equals to $385 per year or $32 per month.

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New energy star 40 gallon natural gas (NG), 110V powered damper water heaters cost $1175 and must have 0.67 EF or higher, most are at 0.67 EF, this water heater uses an average of 224 therms per year for a family of four (4), this equals to $356 per year or $29.50 per month.

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The cost of $32 per month for standard water heater and cost difference of $29.50 per month has a savings of only $2.50 per month or $30 per year, the electrical energy use for the powered damper models has not been factored in this report.

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The average cost difference between the two water heaters standard vs energy star is <$625>.

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In most instances a powered damper has to have a 110V GFIC electric receptacle to operate the water heater and be installed by a licensed electrician at an average cost of $300 and a electrical permit and inspection cost on average is $85

put this all together $625 energy star water heater upgrade cost $625 + electric $385 = $1010 total upgrade cost.

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Now here's the fun part take the extra total savings per month of $2.50 and divide it by the upgrade cost of $1010 this equals 404 months just to break even or 33.5 years to just break even.

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This mathematical equation is based on current rate of $1.59 per therm and four (4) people in household, if only two (2) people are in household expect up to 40 years just to break even. Average quality water heater last 12-14 years.