The changes in the efficiency requirements for HVAC units and Water Heaters could create additional expense for property owners. Water heaters are sometimes in small closets or areas where space is limited. If the size is not available to fit the space, then costly construction work may be needed. Even though this change was put in place in 2015 some owners may not be aware and will get an unpleasant surprise when it is time to replace the hot water heater. HVAC unit replacement may also have space limitations. Often the inside unit is installed in the attic or on top the roof. If an exact match cannot be found, then modifications may need to be made. Owners who maintain a home warranty should check with their home warranty company to make sure the potential construction costs are covered. If they are not, then switch to home warranty company that does cover the additional costs.
Changes for Hot Water Heater Energy Factors (EF)
In 2015 the minimum Energy Factor (EF) ratings for virtually all residential water heaters increased. An EF rating measures the annual efficiency of a water heater – a higher EF means a more efficient water heater. Manufacturers will no longer produce units that do not meet the new standards. Products manufactured prior to April 16, 2015, can continue to be purchased and installed. Both gas and electric water heaters between 20-55 gallons will have more insulation. This means they could be up to 2 inches taller and wider. If water heaters get bigger, then some units might not fit in current installation sites. (e.g. small closet).
Both gas and electric water heaters will have unique installation requirements. Gas water heaters over 55 gallons will use a new condensing technology. Electric water heaters over 55 gallons will be required to use heat pump technology, which calls for the installation of a condensate disposal line, and the provision of sufficient air volume to accommodate the heat source, which may prevent installation in smaller spaces. Note: Less than 10% of all of the water heaters replaced by First American Home Warranty in 2021 were over 55 gallons.
In 2015 there were changes for Heat Pumps and Air Conditioners. SEER stands for “Seasonal Energy Efficiency Ratio.” SEER can be compared to miles per gallon on your car. The higher the number, the more efficient the HVAC unit.
Heat Pumps – The standard for all split-system heat pumps increased to the national heat pump efficiency minimum of 14 SEER and 8.2 HSPF (Heating Seasonal Performance Factor).
Air Conditioners – The AC standard has increased to 14 SEER. Existing systems less than 14 SEER may continue to be used as long as they can be repaired with available parts. But if your AC repair company cannot get parts the entire unit will have to be replace.