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The Biden administration finalized climate regulations to ban most natural gas-powered instantaneous water heaters—a move that critics say will drive up costs for consumers.
The Department of Energy—which formally published the rules the day after Christmas—didn’t issue a press release announcing the action, a departure from past appliance regulations. The published rules say the regulations are expected to help the climate by curbing carbon dioxide emissions.
Overall, under the regulations, roughly 40 percent of the new tankless water heaters available in the United States today will be taken off the market by 2029. Experts and industry officials say that will force consumers to purchase either more expensive or less efficient water heater models. //
One industry analysis estimates that consumers will pay $450 more on average when purchasing new water heaters thanks to the regulations. And that will impact low-income and senior households, which are most reliant on the models targeted by the Department of Energy.