Overview

• The Department of Energy has finalized a rule banning less efficient, non-condensing natural gas water heaters, set to take effect in March 2025.
• The new standards require tankless gas water heaters to use 13% less energy, effectively phasing out cheaper non-condensing models.
• Critics argue the rule will significantly increase upfront costs for consumers, especially low-income and senior households, with limited long-term savings.
• Supporters highlight the environmental benefits, projecting a reduction of 32 million metric tons of carbon dioxide emissions over 30 years.
• The rule has sparked legal and industry backlash, with claims it violates the Energy Policy and Conservation Act by eliminating a distinct product category.