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DOE (department of energy) water heater standards for tank type heaters after April 2015 National appliance energy conservation act/ NAECA
 
Undersized heater will work more, costing more maintenance and shortening life of heater.
Buying new 30-40-50 gallon heater will cost considerably more than the possible $1 month energy savings caused by the 2015 energy standard.
50-75 gallon High technology condensing gas heaters will never pay back for ordinary home despite 20% higher efficiency.
50-80 gallon Hybrid heat pump electric heaters have drawbacks but might save money for some installations.

Resource pdf
New-energy-standards-for-water-heaters-DOE 2015-article.pdf
New-national-water-heater-standards-give-efficiency-major-boost
New-water-heater-rules/ pdf
NECA guidelines/ pdf
About 53% of U.S. households use natural gas water heaters, while 38% use electric and less than 4% use oil.
Gas heaters produce more BTU's per hour and can heat water faster than electric heaters.
Standard 2-element electric heaters are simple to install and can be maintained to last forever. They have higher efficiency than gas, but cost more to operate.
Less than 55 gallon
Energy standards
What they said in 2014:
Under 55 gallon:
Gas heaters: No standing pilot light and flue baffles means requires 120 volt outlet.
Gas and electric heaters might be 8" taller and 6" wider due to insulation.

Reality 2020: Gas water heaters still have pilot lights. Exceptions would include power vented heaters, and condensing heaters that use hot surface ignition ... this is unchanged since 2014.
It's true that flue damper heaters need outlet, as do power vented, and condensing heaters, same as 2014. But the residential and commercial atmospheric heaters with pilot light remain on the market and still do not need electric outlet. Review flue damper
The 50 gallon electric hybrid (heat pump) models are taller than ordinary electric heater, but they're same size as 2014.
Most ordinary 30-40-50 gallon heaters are probably 2" wider and maybe 1" taller ... almost as predicted.

What they said in 2014  
The new standard will result in approximately 43% energy savings.
Lower energy bills would cover typical incremental costs for more efficient water heaters (about $800) in seven years.'

Reality 2020: The prediction was false .... No heater has achieved 43% efficiency gain ... and increased costs of buying heaters has far exceeded any energy saving.
Condensing heaters have 80% efficiency, same as 2014, and maybe more homes have been forced into buying them.
Atmospheric and flue damper and power vented models that were 59-63% efficient before might be 2% more efficient after 2015 assuming manufacturers are actually making improvements, which is difficult to discover or prove based on resources they post ... and since manufacturers do their own testing without oversight, the whole situation is more than laughable.

What they said in 2014   Many homes will need to be remodeled to accommodate larger heater.

Reality 2020: This might carry some truth, and would affect folks with small living space. In this instance, a smaller heater might be necessary to save expensive remodel, and this would result in slight energy savings ... except offset by the fact ... that an undersized heater will work harder, requiring more maintenance and reducing lifespan of heater ... requiring early replacement of heater ... raising overall cost which far exceeds any energy saving.

More than 55 gallon
Energy standardsNew energy standard April 2015
What they said in 2014 about gas heaters  Over 55 gallon, must buy condensing heaters with higher technology, but cost of heater and maintenance will exceed expected savings.

Reality 2020 Yes, you must buy condensing for over 55 gallon, and costs exceed saving, but condensing heaters deliver a lot of hot water for high consumption homes, making it difficult to compare.
Condensing heaters cost more to buy (running into the thousands of dollars), they are higher technology, require more maintenance, require power vent or power direct vent installation, require 120 volt outlet, Condensing heaters are generally not DIY repair.
But wait, instead of a condensing heater, you can there are ordinary atmospheric vented, non-condensing 74-98 gallon gas heaters that are rated commercial grade for residential (a new category invented in 2015 to side-step energy standard). Example 74-98 gallon spec sheet
Or instead of installing a condensing, you can install 2 heaters, but again, it raises consumer cost and requires a larger flue pipe.
Undersized heater will work more, costing more maintenance and shortening life of heater.
Resource:
Review Polaris condensing heater (gas)

What they said in 2014 about electric heater The 30-40-50 gallon ordinary tank will have more insulation, larger size, higher efficiency, higher cost, but otherwise remain mostly unchanged after 2015 energy standard.

Reality ... true ... ordinary electric heaters are slightly wider and taller.

What they said in 2014 about electric heaters   Electric water heaters over 55 gallon must be heat pump to meet energy standards.

Reality 2020: Hybrid (heat pump) heaters are required unless you install 2 heaters.
Manufacturers are sticking to their guns on this one, despite the customer needing a rebates (you loaning yourself money to buy something that makes no sense otherwise). 
Why is there reluctance to buy hybrid heat pumps? Hybrid heaters are expensive. They require yearly maintenance and are generally not DIY repair. They are noisy, tall and heavy (900 lb massive like 4 linebackers) ... they require incoming air supply (7' x 10' room), floor drain for condensate, yearly maintenance (cleaning air filter and condensate drain), and can be a drain of money if unit needs $400-800 repair or consumes energy from the HVAC to heat water.
However, if all works well, then the hot water is heated using 690 watts of power instead of 4500 watt elements, albeit the unit reheats tank slowly unless secondary elements kick in to assist.

Demand Response
There are still 'ordinary' 2-element 80-100 gallon electric water heaters, but by law, they must be enrolled in a 'demand response program' where the lower element of heater is controlled by electric utility. Read spec sheet  You might be able to rewire these units to sidestep requirements, but I have not tried or heard of anyone doing so.
Resources:
Review Hybrid electric water heaters (electric)
Vaughn demand response control
Short nipple
Anode rod with resistorCombo anode rod
Result of more insulation on top of 30-40-50 gallon gas and electric heaters:

Hot-cold connections are same length as 2014 heaters, so the nipples are too short to apply a wrench ... and nipples are near impossible to remove.
Resource:
How to remove short water heater nipple

This is huge disadvantage for customers, especially folks that have heaters with the combo anode rod.
Anode rods protect steel tank from rusting. Most anodes are hex head and removed with a 1-1/16" socket, and have no connection to the nipple. See image
However the combo anode is connected to, and part of the hot water nipple ... the combo anode rod cannot be removed for inspection or replacement. See image
There is no magic answer for this problem.
This is going on ... no matter how much it costs or inconveniences you.
Resource:
How to inspect and replace anode rod

See example chart
Old sizing chart
Post 2015 heaters require high tech for sizes over 50 gallon.
High tech heaters have electronic controls that are susceptible to surge.
Plug heater into Surge Outlet. Multiple surge protection on one circuit is good. Do not use GFCI with water heaters, or risk errors and lockouts etc.
Buy:
Surge outlet

Take showers instead of bath. Showers consume 7-10 gallon hot, while bath consumes 15-20 gallon hot. Save 10 gallons hot water each time.
To achieve same hot water consumption as previous heater without buying more expensive heater install 2 water heaters, cut consumption, maintain heater, turn up thermostat temperature, install mixing valve.
Buy: Mixing valve

Resources:
Two water heaters
9 ways to save with water heater
Maintain water heater
How to adjust thermostat
Ways to increase hot water
Calculate first hour delivery
Advantages-disadvantages mixing valve
Over 55 gallon size heaters
Picture not to scale

1) Gas heaters over 55 gallon require a condensing heater.
Approximate efficiency 80% compared with ordinary 50 gallon tank heater 60%.
50 gallon condensing 22" x 71" and 75 gallon 27" x 64" Spec sheet
Condensing heaters produce massive amounts of hot water, but are expensive to buy, require large gas line, power venting, yearly maintenance, plus repairs and parts are expensive.
Note you can still buy 'commercial grade for residential' 74-98 gallon heaters. Spec sheet

2) Electric heaters over 55 gallon require hybrid/ heat pump.
50 gallon 22" x 63" and 80 gallon 27" x 69". Spec sheet
Heat pumps are reliable and deliver 50-80 gallons hot water but are slow to reheat tank. They are expensive and require yearly DIY maintenance. Payback is possible in some instances, but hybrids heat water by leeching energy from the HVAC, making payback uncertain.
There are still 1-element 80 gallon electric heaters that are typically used for solar hot water collection, but for the ordinary 2-element 80 gallon electric heater, it must be enrolled in a 'demand response program' where local power company can turn off lower element. Spec sheet

High technology water heaters increase purchase price considerably but improve efficiency.
Both gas and electric models require more maintenance.
floor drainRepairs and parts are expensive.
Both types generate condensation and require floor drain

Resources:
Review Polaris condensing heater (gas)
Review Hybrid electric water heaters (electric)
Efficiency of gas water heater
Energy factor is not efficiency
Energy factor is a formula for calculating efficiency
Source for efficiency/ pdf

Chart shows typical tank-type gas water heaters manufactured after April 2015 gained 2% efficiency over prior years. This might save $12-15 per year operation cost.

All costs are energy, and new heaters have one-time up-front cost: they use more materials, arrive in larger boxes, take up more space and cost more to buy. On the back end, they cost more to replace. What is the real energy savings if a heater saves $12-15 per year, lasts 12 years for a total saving of $144, but consumes more raw materials to manufacture and costs $200 more to buy just to claim higher efficiency?
Why the new energy standard is suspect:
1) Aside from reliability of self-tested products, the older 2012 energy standard is based on 135° thermostat setting. The new 2015 energy standard uses lower setting of 125° to achieve the higher efficiency.
A lower thermostat setting is always more efficient, but means you have less hot water in the tank. It reduces first hour delivery (the amount of usable hot water from a single continuous draw), so the water heater might run longer to keep up with demand. This factor might eliminate the expected savings shown on this page. Resources: Calculate first hour  Ways to increase amount of hot

2) All costs are energy, and new heaters have one-time up-front cost: they use more materials, arrive in larger boxes, take up more space and cost more to buy. On the back end, they cost more to replace. All costs are energy. What is the real energy savings if a heater saves $12 per year, lasts 12 years for a total saving of $144, but consumes more raw materials to manufacture and costs $200 more to buy just to claim higher efficiency?

3) The new water heater standards illustrate an attempt to preserve the heyday of consumption by using 'more efficient' products.
Instead of high cost efforts, why not sell a cheap do-it-yourself insulation kit, since most of the design difference between pre-and-post 2015 30-40-50 gallon water heaters is thicker insulation? Besides, it would not cause the 'short water heater nipple' problem mentioned before on this page.

4) My observation: People relying on 'the marketplace' to solve problems has often resulted in promoting boutique-priced rooftop solar panel installations, and awarding 'energy stars' to 4-person, 5000 square foot home because the massive windows are triple-pane, while overlooking inherent efficiency of DIY solar panels installed on a 6 person mobile home. Perhaps more do-it-yourself decisions, and less reliance on 'somebody inventing a new product' might be correct solution. 
Protect your investment:   How to maintain water heater
The future of water heating might be solar panels:   Convert AC water heater to DC    Should you buy solar water heater
What happens
Who is affected most
Probably true 2020
Small homes, poor people.

What about grandma's manufactured home?
What about the tiny house? 
What about larger diameter water heaters... in attic... in basement... in utility room?
At least big oversized homes will not be affected... that's an energy star !!
Remodeling required? Might be true in 2020:
What they said in 2014: Estimate 50-75% of new installations will require alterations and possible remodeling.
What about small economical homes with no extra space?
Higher prices: 30-50% more
Probably true in 2020, but hard to measure exactly
Estimate: new water heater prices will increase by 30-50 %.
Fact is, heaters have more than doubled in price since 2009.
How much do you save?
$1 each month
Accurate in 2020:
Estimate average monthly energy savings $1 per month for new water heaters.
$1 a month savings = $12-15 per year energy savings  x 12-15 year life of heater = $144-225 over life of heater.
All costs are energy. New heaters have one-time up-front cost: they use more materials, arrive in larger boxes, take up more space and cost more to buy. On the back end, heaters cost more to replace. What is the real savings if a heater costs more than the savings?  
Protect your investment:   How to maintain water heater
How will differences affect you? Accurate in 2020:
Electric heaters over 55 gallon require heat pump that needs 10' x 10' room plus floor drain for condensate.

Not accurate in 2020:
Grounded outlet required for gas water heaters? Of course, dampered gas water heaters and power vented heaters require outlet same as 2014.

True then and now.
Repair technicians must be skilled in water heaters, plumbing, electronics, and electricity. Is that realistic for all communities?

Not true for Bradford White and AO Smith. But true for Rheem.
Repair resources available only from manufacturer?... creating choke point for DIY.

True for condensing heaters and hybrid heat pumps
Complicated water heaters require more maintenance, are more susceptible to external factors such as water quality, plumbing and electrical issues.
Good news:
Rich folks will not be affected
Accurate in 2020:
People with a lot of money and big homes will consume plenty of hot water with less budget inconvenience than poor folks.
Inconsistent standard?
Still true.
I support ordinary electric storage water heaters because they can be integrated into many do-it-yourself projects, and can be located wherever a wire can be installed. For example 80 gallon electric can be used as energy battery to store hot water during peak pricing. The 80 gallon storage tank is used similarly for solar applications.

Did the profit angle affect the energy standard? Of course.
While the 80 gallon electric water heater is discontinued, the whole-house tankless electric is not affected by energy standards. Yet whole house tankless is LEAST EFFICIENT water heater made. For typical family of 4, costing $100 more per year to operate than ordinary electric water heater.
The argument was that tankless were as efficient as they could ever be, and no improvement could be had. But remember, Tankless electric are profitable to sell... and manufacturers receive residual profit from part replacement and service contracts.
The 2-element 80 gallon electric water heater tank is less profitable to sell... and with generic parts, there is no residual profit from DIY repair. 
What are you going to do to conserve energy
Can you conserve Do you really need the same gallon water heater?
Or can you survive with fewer gallons of hot water?
Is it time to investigate solar? Maybe conserving hot water, and less consumption is better.
9 ways to save using water heater
Start today: How to maintain water heater
Modest house with 88 cent energy bill
surge protector      Wall outlet surge protector Surge protect new water heater?
All costs and decisions are energy. Spend more to save more?? 
To save water heating energy, you should buy more stuff that consumes energy to manufacture, ship, buy, install and replace
New water heaters will have electronics that are susceptible to surge
Water heaters with blower fans, flue dampers etc require 120 volt outlet located within 10 feet of water heater

Buy:
15 amp surge suppressor receptacle
Leviton J-box surge protection kit
Square D / whole house or branch panel surge protector at Amazon
Resources:
How to wire whole house surge protector
how to bond control panel
All ground wires from outlets and switches and lights throughout house must be properly bonded together and connected to ground busbar in main panel, and then to ground rod driven into soil deep enough to meet local codes.
All other grounds from satellite, telephone, internet, etc must be joined together and bonded to the main panel ground rod.
Example shows solar panels... but also includes pool control centers, water heaters, electronic devices etc
Check household grounding
Lightning strike within 90 feet of house can knock out electronic controls on water heater
New electronic gas control valves require grounding or they can malfunction and throw error codes
Surge protection and lightning-resistance require proper grounding
When installing new water heater, water pipe, doing repairs on plumbing, installing new electric service etc... check that all electric is connected to dedicated ground wire that is bonded to outdoor ground rod
Bonded means steel electric panel enclosure must be directly connected to local ground rod 

Buy:
Ground rod and clamps at Amazon
Bonding lugs

Resources:
Why ground is important
Basic household wiring
Outlet polarityHeaters that plug into outlet must have correct polarity or gas water heater will not work

Buy
Circuit breaker finder and polarity tester
Outlet testers at Amazon
Multimeters at Amazon
Two water heaters Time for 2 water heaters?
Instead if buying 80 gallon heat pump or go gallon condensing... buy 2 water heaters 40 gallons apiece
Water heaters must stand upright

Resource:
Two water heaters

Time to maintain the old water heater?
Instead if buying new... or remodeling home... keep the old one maintained
Keep old one from leaking, change anode rod each 2-3 years
Resource:
How to maintain water heater
Replace anode rod
Time for point of use electric water heaters?
Instead if buying 80 gallon heat pump or 80 gallon condensing... buy smaller main water heater and install point of use at sink
Connect point of use water heater to cold incoming water so it does not draw hot from main tank.
Instead of buying 60 gallon water heater, install 2-3 smaller heaters sized 15-20 gallons each
Or install 20 gallon water heater in bathroom, and only take shower

Resources:
Installing point of use water heaters
Two water heaters
All costs and decisions are energy
If you have money, then you can have all the hot water you normally use
If you are poor, then your decisions will be limited
Use walk-in tub as fish pond/ re-purpose, do not discard

Why did the plumber do such a bad job installing this heater?
The local plumbing codes probably required a permit if plumber changed gas line or vent pipe.
Permit would cause delay, waiting for inspector to approve installation.
Install water heater yourself: How to install gas water heater
Installation problem: Gas line and vent

Vent pipe (located at top of heater) did not line up for old and new heaters.

Plumber installed water heater tipped to side because of the vent line, and because gas line was in the way.

The plumber should have moved the gas line and gas shut off valve to accommodate moving water heater to the right. Instead, plumber pushed water heater against the gas line and dented water heater slightly... no real damage... but not professional.
The water heater stand is fine for this installation, but some cases, the stand might be too small.

The water heater is not sitting flat against water heater stand, although heater is supported by earthquake straps.
I would not pay for this particular installation, because it can be fixed by moving the gas line... which would cost more money for
 installation.
Bigger water heaters mean installation problems for customers and plumbers.
Resource:
Which is best gas water heater
Electric hybrid for electric over 55 gallon Heat pump requires 10 foot x 10 foot room. Unit must be installed 7 inches away from wall
Requires condensate drain. Heavy to lift. More expensive.
Electronic controls are susceptible to power surge, few generic parts, few DIY repairs
Cannot be maintained to last more than 12-14 years
Must be connected to 208-240 volt. Wiring and voltage cannot be modified DIY
Through wall fan Use thru-wall fan if room size is smaller than 10' x 10'
Hybrid heat pump water heater requires 10' x 10' room
If you do not have that size room, then install thru-wall fan
Running a fan to supply air to meet the needs of heat pump water heater adds energy cost
Larger image
Buy:
Thru-wall fans at Amazon
Thru-wall fan at Amazon
Current switch/ current transducer
6 x 6 enclosures
Resource:
Add a delay timer to the fan
2012:
If water heater lasts 10 years, and cost $600 to buy and install today, but 10 years from now it costs $1200 to buy and install, then depreciation cost is $5 per month.
All costs are energy.
Add depreciation cost to monthly energy bill to accurately estimate cost for operating water heater.
It makes sense to maintain water heater, because depreciation cost is high, and do-it-yourself DIY maintenance cost is small.
2015:
Electronically controlled water heaters often cannot be maintained to last longer than 10-14 years.
Maintenance might require service technician with specific skills. Manufacturers do not post service manuals... models change quickly. Expect many changes over next ten years.
New DOE mandates might force consumers into products that cannot be maintained or repaired by homeowner.
Does this mean more efficient water heater costs you additional $5 per month in depreciation, plus cost of service technician, to save $2-4 of energy per month?
Look at parts sheet, and weigh the option of buying smaller water heater vrs complex water heater.
Ask: Is it time to weigh solar water heating options? Solar can be costly and complex too.
Consider options: Simple water heater, DIY repairs and maintenance, and lower consumption means energy savings.
All costs and choices are energy.
Resource:
How to maintain water heater
Review solar water heater
2012
Look at parts sheet before buying product. Avoid electronic gizmos that are susceptible to surge and cannot be repaired.
Avoid tankless and heat pump and expensive heaters.
If repairs cost $400 each time, and you need 1 repair over 10 year lifespan of product, then that adds another $3.30 per month for energy cost. Two repairs adds $6-7 per month.
If you add $3-6 per month to budget for repairs, so that water heater can save $2-4 per month energy cost, did you save money?
If a product cannot be repaired, because parts are not available or parts are too expensive, or no qualified technician in area, or water heater is just not repairable, then you must replace heater. Did you save money?
2015
Look at the parts sheet and ask same questions as above.
The DOE standards do not tell manufacturers which product to make... DOE simply mandates the manufacturer must meet new energy standard
To meet new energy standards, especially for larger heaters, the manufacturers can only offer more complex water heaters.
This might mean you should downsize the water heater and reduce consumption.
All costs, and behaviors and choices are energy.
2015 other options:
New standards do not effect commercial heaters. These heater are much more expensive.
Or you can add second heater so you have two water heaters. Same capacity as before without buying complicated heater. Two heaters: more surface area/ more heat loss.
Resource:
9 ways to save with water heater
Review GE heat pump
Troubleshoot Rheem tankless
Two water heaters
Recycled water heaterNew standards will spark innovation
Fewer people with hot water...
Smaller water heaters...
Less hot water...
Shorter showers...
Colder showers...
Will save energy !!!
All costs and decisions are energy

Resources:
Modest house with 88 cent energy bill
9 ways to save with water heater
Support the economy:
Buy water heaters from my associate links:

50 gallon Gas water heaters at Amazon
40 gallon gas water heaters at Amazon
50 gallon Electric water heaters at Amazon
40 gallon electric water heaters at Amazon
Hybrid / heat pump/ water heaters at Amazon

Resources:
How to install gas water heater
How to install electric water heater
Troubleshoot gas water heater
Troubleshoot electric water heater
Point of use water heaters
Resources:
Troubleshoot Gas valves with manuals
Icon gas valve

How to replace water heater element Waste King disposal
How to wire tankless electric


Install point of use water heater
Titan tankless

Contactors/ relays
Type 1 and type 2 surge protection surge protection
Programmable timers

Woods timers
surge protection
Anode rods anode rods
Recirculation system

Tankless recirculation
Point of use water heater
Install and troubleshoot garbage disposal Waste King disposal
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Saws and saw blades
box timers Resource:
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Control water heater w/ Z-wave
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Intermatic control centers: and parts
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programmable timer Resource:
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