The U.S. Department of energy has put into effect new requirements for water heating systems. Manufacturers are now required to produce water heaters with a minimum heating seasonal performance factor (HSPF) score of 8.2, up from a previous minimum requirement of 8.0. We interpret this new regulation as geared towards the manufacturer and beneficial to the consumer. Although the concept of water heater regulation sounds boring, saving money is not.
Heating Season Performance Factor is essentially a measure of energy efficiency. It is essentially what miles per gallon is to your car. It takes into to account total heating compared to total energy expended. The higher the HSPF score the more efficient the heating system. The highest efficiency heaters chart in around 9.5. Heaters operating at this efficiency may be claimed for tax credits from the IRS, but you can also claim an IRS tax credit if you upgrade to a water heater with the new HSPF requirement of 8.2. Moreover, a high efficiency water heater tends to save homeowners money in the long run due to the reduction of their monthly energy bill.
The new water heater efficiency regulation implemented by the U.S. Department of Energy is no doubt aimed at manufactures. By setting an efficiency floor, the production of high efficiency water heaters will naturally reduce energy expenditure, and thus, contribute to the conservation of the environment. The U.S. Department of Energy did add the stipulation that manufacturers have an 18 month grace period to sell water heaters below the 8.2 threshold. We believe that this will force manufacturers to reduce their price in order to move their inventory before the deadline approaches. Customers on a budget would be wise to take advantage of this. Moreover, the market for used water heaters will see a trend in the reduction of used water heater prices. The new efficiency ceiling set by the U.S. Department of Energy will force vendors cool down their prices in order to move their outdated water heaters.