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May 2015 — Property Management Quarterly — Page 21
B y now you probably are aware
of the newwater heater
regulations, but, as with any-
thing new, it is good to have
additional information and
perspectives. As early as April 2, sup-
ply houses were running low or were
out of older water heaters because
the older heaters are being bought up
in the typical supply-versus-demand
economic theory. The new water
heater regulations will drive up the
cost of water heaters. Period. Early
estimates are predicting the increase
to be between 8 and 12 percent,
according to the Plumbing, Heating
and Cooling Contractors Association.
Water heater manufacturers are
forced to alter designs to improve the
insulation to meet new energy-effi-
ciency standards. This means most of
the water heater diameters and sizes
will increase or the heater’s capacity
will decrease, potentially up to 10 per-
cent, according to the association.
The higher efficiency makes these
units pricier to install and to repair.
Additionally, due to the size changes,
they could cause installation issues.
New heaters will require at least 3
inches of extra space around the unit,
which is particularly troublesome for
areas with size restrictions.
Choosing smaller units may cause
capacity to drop, which is some-
thing most water heater users don’t
want to give up. Efficiency standard
increases in the past did cause manu-
facturers to reduce 40- and 50-gallon
water heaters to 38- and 47-gallon
heaters, respectively. This had a large
impact on residential condominiums
and apartment buildings. Residents
likely will require a change in their
hot water use due to the lowered
capacity.
These fears are causing people to
snatch up the older models to avoid
or delay the capacity and size down-
sides. Plumbers, contractors, builders,
property managers and homeowners
are capitalizing on that fact.
The new water heater efficiency
standards, effective April 16, 2015,
state that all household appliances
manufactured for sale in the U.S.
must meet certain energy-efficiency
levels. This new rule, however, does
not preclude installation of noncom-
pliant products manufactured before
April 16. The updates will require
nearly all residential electric, oil and
tankless water heaters to carry higher
energy-factor ratings.
These new regulations will result in
a few options for property managers
to consider:
Jump on the bandwagon. You still
may be able to secure an older model
water heater and “buy” yourself
more time before needing to make
the adjustment. However, before the
useful time of the water heater has
expired, you may be facing a problem
with getting replacement or service
parts because the parts will no longer
be manufactured and will become
obsolete.
Be a trendsetter. You can get an early
jump on the higher-efficiency water
heaters before prices rise because
of the demand. Once people start
to require new water heaters due to
water heater failure, they will have lit-
tle option but to purchase the newer
systems.
If you are looking for a water
heater that doesn’t increase in size
or decrease in capacity, you have a
few other options – gas water heater,
tankless water heater or hybrid heat
pump water heaters.
• Gas water heaters are only an
option if gas is already installed,
because installing
new fixtures can
add up quickly.
• Tankless water
heaters are ideal for
areas where lots of
hot water for mul-
tiple users is impor-
tant. The tankless
heaters save space,
are long lasting and
are better for the
environment.
• With twice the
efficiency of stan-
dard electric water
heaters, hybrid heat
pump water heaters can offer signifi-
cant cost savings, including possible
tax credits. It’s a good idea to take
advantage of this newer technology
that won’t reduce output capacity.
Models already are being designed to
address the space issues.
“Based on the NAECA 2015 rules,
all residential electric models over 55
gallons must be of the hybrid electric
heat pump water heater type design,”
said A.O. Smith Corp., a leader in
water heater manufacturing.
Cross your fingers and wait. Your cur-
rent water heater may keep ticking
right into the next round of regula-
tions, model improvements or energy
rating standards. The standard war-
ranty for an electric water heater is
six years, but we have heard of water
heaters lasting 16 years. This is espe-
cially true of high-quality brands. The
risks you run are the leaks and flood-
ing that could come as a result of
water heater failure, which can create
costly water damage to property.
To discuss the new water heater
regulations or to get pricing for bud-
get consideration, contact a local
licensed plumber who specializes in
a variety of water heater options. For
property management of multiunit
properties, consider an action plan
that budgets replacement of all energy-
efficient appliances in phases.s
Susan Roberts-
Frew
President and
CEO, Sunshine
Plumbing, Heating
& Air, Commerce
City
Codes
Photo courtesy Rheem
Hybrid heat pump water heaters offer
twice the efficiency as standard heaters.