DOE’s Efficiency Standards for Tankless Water Heaters Fall Short of Environmental Goals, Impact Consumers and American Workers

PEACHTREE CITY, Ga. (December 17, 2024) – Rinnai America Corporation, a leading brand of tankless water heaters in North America, strongly opposes U.S. Department of Energy’s (DOE) amended final rule on efficiency standards for tankless water heaters and urges the incoming administration to consider all implications and reverse the rule. The final rule will unreasonably restrict consumer access to certain tankless water heater products, disproportionately impact middle-income households and small businesses, and jeopardize hundreds of American jobs. 

The DOE's final rule raises standards for tankless to a condensing level of 91 percent, while tanked gas-fired water heaters remain subject to significantly lower non-condensing standards. While tankless water heaters are the more environmentally friendly option, achieving 91 percent efficiency with non-condensing technology is technologically impossible.

“As published, the DOE’s rule will create an uneven market that favors less energy efficient gas-fired tanked water heaters,” said Frank Windsor, president of Rinnai America Corporation. “Consumers who rely on access to affordable tankless water heaters will see their options limited, forcing many to switch back to traditional tank-style water heaters, which are far less efficient at around 70 percent. This shift will result in higher energy bills and maintenance costs, while undermining the very environmental goals that prompted this rule. It will also potentially impact hundreds of American jobs that have been created in recent years. We urge the incoming administration to reconsider this egregious government overreach and reverse this rule that negatively impacts consumers, American workers, and the environmental goals it is intended to achieve.” 

Rinnai America Corporation employs over 550 people across the United States at its headquarters, manufacturing facilities, and distribution centers. In the last five years, Rinnai has invested more than $100 million as part of its commitment to developing a strong domestic manufacturing base to serve the North American market. 

For more information on Rinnai and its portfolio of products, visit www.rinnai.us. 

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Rinnai Media Contact: 
Amy Evans, PR Account Manager

Miller Brooks
Email: amy@millerbrooks.com

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