While most people equate April 15 with their tax returns being due, there is another less notable but equally draining on the wallet event that happens following the 15^th of April of 2015.

As of April 16 2015, a new energy efficiency mandate is going into effect that will directly impact your wallet and possibly the location of your water heater. This revision to the National Appliance Energy Conservation Act, otherwise known as NAECA, will change the design of most new water heaters.

So what exactly is changing following the 15^th? The Department of Energy is requiring higher energy factor ratings on virtually all residential water heaters including gas-fired, oil-fired, electric, tabletop, instantaneous gas-fired and instantaneous electric.

Water heaters that hold under 55 gallons will now have to meet a significantly higher minimum energy factor requirement. In certain model, these new minimum requirements will be met by adding to the insulation surrounding the tank.

However, for those tanks over 55 gallons, much more substantial changes are required. Typical gas and electric models will not be able to meet the new requirements and will be diminished. Instead, electric heat pumps and high-efficiency condensing gas water heaters will be the new standard.

So what does this mean for you? All new water heaters manufactured after April 16 will be physically larger, up to 2” taller and 3” wider. For some homeowners with units installed in a small closet or alcove, this will result in relocating their water heater or downsizing to a smaller tank size, which can seriously put a hurt on the old wallet as this can involve renovating your whole water heater area, which is no small undertaking.

These newly designed tanks will also have a higher price tag, which is a great reason to think about installing a new unit in the near future. The average lifespan of a water heater is about 11 years. If you are approaching that mark, we recommend looking into replacement. These new units will be phased in as old inventories are depleted, but given the circumstances the supply is expected to deplete quickly.