A new federal water heater rule requires heat pump technology above 35 gallons by 2029

The Department of Energy will require electric storage water heaters bigger than 35 gallons to reach an efficiency level only heat pump technology can meet, once compliance starts on May 6, 2029.

351gallons, the tank size above which an electric storage water heater must reach an efficiency level only heat pump technology can hit
May 6, 20291the date compliance with the new efficiency standard is required
3321million metric tons of carbon dioxide the rule is projected to avoid over 30 years
25 billion to 82 billion1dollars in net present value consumer benefit over the life of covered water heaters, the range the rule itself gives under 2 different discount rate assumptions

The new water heater rule requires heat pump technology by 2029

A new Department of Energy rule sets an efficiency level for electric storage water heaters bigger than 35 gallons that only heat pump technology can reach, and manufacturers must meet it starting May 6, 2029. A heat pump water heater moves existing heat from the surrounding air into the tank instead of generating heat directly from electricity, the way a standard electric resistance water heater does. The Department of Energy published this final rule on May 6, 2024, giving manufacturers exactly 5 years to comply. A. O. Smith, a water heater manufacturer, also states on its own site that residential compliance is required by May 2029. Smaller tanks, 20 to 35 gallons, and much larger tanks, over 55 gallons, keep a path that does not need a heat pump, so the new water heater rule lands on the size range in between.

Why only heat pump technology can meet the new standard

The rule measures efficiency with a uniform energy factor, a single number describing how much hot water a unit delivers for the energy it uses. A water heater bigger than 35 gallons and up to 55 gallons now has to hit a factor of 2.3 or higher. A flat electric resistance water heater cannot pass a factor of 1, because it only converts electricity straight into heat. A heat pump moves existing heat instead of generating it, so it can report a factor well above 1. The California Energy Commission told the Department of Energy in comments on the rule that even the least efficient heat pump water heaters already sold carry a factor of 2.8 or higher. That gap is why electric storage water heaters bigger than 35 gallons will effectively have to be heat pump models once 2029 arrives.

Only heat pump water heaters clear the new efficiency requirementOrdinary electric resistance heatingMeets or beats the new heat pump only requirement
01231Ordinary electricresistance heating2.3New minimum requiredabove 35 gallons2.8Least efficient heat pumpalready on the marketuniform energy factor

Source 1.

Show the numbers
Ordinary electric resistance heating1
New minimum required above 35 gallons2.3
Least efficient heat pump already on the market2.8

The 3 size classes the rule creates

The final rule sorts electric storage water heaters into 3 size classes. Tanks of 20 to 35 gallons form a small class that can still use plain electric resistance heating. Tanks bigger than 35 gallons and up to 55 gallons must hit the 2.3 factor described above. Tanks bigger than 55 gallons and up to 120 gallons form a third class that must meet an even higher factor, not given as a single number in the rule. The current regulation, 10 CFR 430.32, confirms the 20 to 35 gallon boundary in the same words twice, once for the standard already in force and once for the standard that takes over in 2029.

The 3 electric storage water heater size classes under the ruleSmaller than this classThis class own gallon range
Small class20 to 35 gallons, resistance heating still allowedHeat pump required class35 to 55 gallons, must reach a uniform energy factor of 2.3Largest class55 to 120 gallons, an even higher factor required0306090120gallons of storage volume

The middle class is the one that must use heat pump technology to meet its efficiency requirement.

Source 1.

Show the numbers
Small class20 to 35 gallons, resistance heating still allowed
Heat pump required class35 to 55 gallons, must reach a uniform energy factor of 2.3
Largest class55 to 120 gallons, an even higher factor required

What stays true for buyers right now

Nothing changes for anyone buying a water heater today. Compliance is not required until May 6, 2029, and one 2026 explainer aimed at installers describes the rule as still facing ongoing legal challenges and postponements, so 2029 is the current legal deadline, not a settled fact. Only 1% of United States households used a heat pump water heater as of 2023, the year the rule was proposed, according to Grist reporting from that year. When the rule was still a proposal, Susan Weinstock, chief executive officer of the Consumer Federation of America, said this.

Although long overdue, the efficiency standards proposed by DOE will deliver significant savings for consumers over the life of the water heater.

Susan Weinstock, Chief Executive Officer, Consumer Federation of America. Source 5.

The impact the rule itself projects

The Department of Energy states in its own final rule that the standard will avoid 332 million metric tons of carbon dioxide over 30 years. A separate 2025 repeal of a different Department of Energy rule, covering gas fired tankless water heaters, does not affect this electric storage rule, a distinct product category under a distinct legal action.

Sources

  1. Energy Conservation Program, Energy Conservation Standards for Consumer Water Heaters. Federal Register, National Archives and Records Administration. Published 2024-05-06. Accessed 2026-09-22.
  2. 10 CFR 430.32, Energy Conservation Standards and Their Compliance Dates. Electronic Code of Federal Regulations, National Archives and Records Administration and the Government Publishing Office. Accessed 2026-09-22.
  3. DOE Regulations. hotwater.com, A. O. Smith Water Products Company. Accessed 2026-09-22.
  4. DOE 2026 Efficiency Standards for Water Heaters, What Homeowners Need to Know. TanklessHelp.com. Published 2026-06-30. Accessed 2026-09-22.
  5. New Rule for Water Heaters Could Help Americans Save Energy and Money. Grist. Published 2023-07-25. Accessed 2026-09-22.

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