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New water heating efficiency standards ― marketing opportunity or obstacle?
New federal water heater efficiency regulations went into effect April of this year, bringing a whole host of changes for contractors installing and servicing these appliances. Higher energy factor ratings are now required on all residential gas, electric, oil storage tank and tankless water heaters, and the change has not only impacted how water heaters are manufactured, it’s created changes for contractors and homeowners, too.
Among the National Appliance Energy Conservation Act’s biggest impacts were:
- Replacements: Depending on fuel source and size of the existing water heater, a replacement is no longer as simple as switching the old unit with a new version of the same model.
- Installation: Because tank sizes are now taller, wider and heavier in many cases, there may not be appropriate space for new NAECA-compliant water heaters. Additionally, installation may require two people whereas they previously required one, and installation costs can be higher for homeowners.
- Equipment cost: New units may be pricier. The higher upfront cost on top of higher installation costs can be a challenge for homeowners to overcome.
While it’s easy to point out all the changes NAECA has created, what contractors may be failing to see is the opportunity it’s produced, too. Contractors can use the new regulations to their advantage so long as they know how to make the right recommendations.
- Discuss the long-term value on new water heaters.
Talk about this appliance in terms of long-term value, not just up-front cost. To do this, help homeowners figure annual cost of ownership, which is the cost of original equipment, installation and annual energy costs. Storage tank water heaters last on average 10 to 12 years and are the second largest energy user in the home. While new regulations may mean that replacing a unit costs more than it used to, in the long run homeowners will easily recoup those costs and then some.
- Educate homeowners about when to replace.
Most new homeowners do not know the current age of their water heater or the signs of an aging unit on its last legs. Additionally, the life span of a unit can vary greatly based on where homeowners live and how often they use it. Resources like KnowYouWaterHeater.com educate customers while also explaining options for replacement. Waiting until the unit fails will inevitably make families uncomfortable and cost more to replace.
- Recommend alternate energy sources.
NAECA revealed a lot of weaknesses with electric-powered water heaters. Electric storage tank water heaters increased the most in size and weight, and still cost more to operate than similar gas-powered models. Alternate energy sources, like propane, could save homeowners hundreds of dollars each year. If a customer already uses gas for other appliances in the home, consider recommending a switch. Additionally, customers interested in a gas-powered water heater may be interested in other gas-powered heating and cooling systems, too. This is an opportunity to sell those units as well.
- Sell water heaters as a green solution.
Water heaters can be a green selling point for eco-conscious customers. Compared with standard efficiency electric storage tank models, similar propane models produce two times fewer emissions. The difference amounts to about 1,300 pounds of carbon dioxide a year. That’s equivalent to the emissions produced driving a car more than 18,000 miles. For this reason, gas-powered water heaters are becoming increasingly popular in states such as California and others with tough emissions regulations.
The initial headache from NAECA’s changes is over. Now’s the time to focus instead on what contractors and industry professionals stand to gain in this new era. And personally, I see lots of opportunity.
Bridget Kidd | Director of Residential and Commercial Programs
Bridget Kidd is the director of residential and commercial programs for the Propane Education & Research Council (PERC). Her responsibilities include educating homebuilders, architects and other construction professionals on the applications and benefits of propane in these markets.Prior to her role with PERC, Kidd served as the executive vice president of the Home Builders Association of Bucks and Montgomery Counties in Pennsylvania. She was responsible for the organization’s management and administrative components including planning and implementation, fundraising, and execution of policies and procedures. In addition, Kidd served as the director of government affairs and lobbyist for the association. A graduate of Villanova University in Philadelphia with a Bachelor of Arts in communications, Kidd is working toward her master’s in Organizational Development and Leadership from Saint Joseph’s University.