DOE Minimum Efficiency Standards for
Commercial Water Heaters
The Department of Energy (DOE) sets national minimum energy efficiency standards for commercial and consumer (residential) water heater and American Water Heaters is committed to leading our industry in compliance.
The Department of Energy’s (DOE) new energy conservation standards for commercial water heaters will go into effect by October 2026. These new regulations are part of DOE’s efforts to reduce overall energy consumption in the United States.
All water heater manufacturers will be required to meet new minimum efficiency standards for commercial applications by October 2026.
What you need to know
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Gas Storage Standard |
Gas Instantaneous Standard |
Residential-Duty Gas Storage Standard |
Commercial Electric Tank |
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Min TE = 95%
Reduced Max
Standby Loss |
Min TE = 96% |
UEF = 0.9297 |
No Changes |
Everything You Need to Know
On October 6, 2026, the Department of Energy’s (DOE) new minimum efficiency standards for commercial water heaters will go into effect. A.O Smith is here to make it easy.
DOE-Compliant American Water Heaters
Impacts of the New Standards
The new standards:
...will require commercial water heaters to incorporate condensing technology to increase energy efficiency
...are projected to save businesses and operators $140 million per year in operating costs
...will significantly reduce carbon and methane emissions
Commercial Water Heater Energy Conservation Standards
Residential-Duty Commercial Water Heater Energy Conservation Standards
Still Have Questions?
Why are the regulations changing for commercial water heaters?
The Energy Policy and Conservation Act, as amended (‘‘EPCA’’), prescribes energy conservation standards for various consumer products and certain commercial and industrial equipment, including Commercial Water Heating (‘‘CWH’’) equipment. EPCA also requires the U.S. Department of Energy (‘‘DOE’’) to periodically review standards. In this final rule, DOE is adopting amended energy conservation standards for CWH equipment.
Source: https://www.regulations.gov/document/EERE-2021-BT-STD-0027-0042
Why is the US Department of Energy (DOE) making these changes?
The DOE has created an Industrial Decarbonization Roadmap that outlines a clean energy strategy to reduce gas (GHG) emissions in the American industrial sector.
What do these changes mean?
Beginning on October 6, 2026, only high-efficiency (condensing) gas commercial water heaters can be manufactured or imported into the United States.
Water heater professionals may still purchase commercial water heaters manufactured or imported before October 6, 2026, from existing retail or wholesale inventory.
The new standards for residential (consumer) water heaters do not go into effect until May 6, 2029, but if you are considering a new water heater or looking at a new house, you’ll find helpful information on our Resources for Homeowners page.
