Why Water Heater Prices Are Increasing in January — And What Homeowners Should Know Now

If you’re considering replacing your water heater, now is an important time to act.

Beginning January 1st, new federal energy-efficiency regulations will go into effect that significantly change the types of water heaters manufacturers are allowed to produce. While these changes are designed to improve energy efficiency nationwide, they also come with higher upfront costs for homeowners.

What’s Changing?

Under the new regulations, manufacturers will no longer be allowed to produce certain standard-efficiency water heaters. These models—reliable, affordable, and widely used—have long been our best-selling units.

Starting January 1st, all newly manufactured water heaters must meet ultra-high efficiency standards.

How This Affects Pricing

Ultra-high efficiency water heaters are more complex to build and often include:

  • Advanced components

  • Additional insulation

  • New technology designed to reduce energy usage

As a result, we are expecting price increases of several hundred dollars per water heater once the new regulations take effect. This increase is driven by:

  • Higher manufacturing costs

  • Reduced availability of current standard models

  • Increased demand as homeowners rush to comply

Unfortunately, this is not a price change we can avoid or delay—it is an industry-wide shift.

What This Means for Homeowners

If your water heater is:

  • Near the end of its lifespan

  • Showing signs of failure

  • Over 8–10 years old

Replacing it before January 1st could save you a substantial amount of money.

Once existing inventory of current models is gone, only ultra-high efficiency units will be available, and prices will reflect that change.

Should You Upgrade Now?

For many homeowners, upgrading before the deadline makes financial sense:

  • Lower upfront cost

  • Proven, reliable technology

  • Avoiding rushed decisions during peak demand

Our current inventory is limited, and once these models are sold out, they will not be replaced.

We’re Here to Help

We understand that regulatory changes like this can be frustrating and confusing. Our goal is to help you make the best decision for your home and budget—whether that means upgrading now or planning for a future high-efficiency system.

If you have questions or want to explore your options, contact us today. We’re happy to walk you through what’s changing and help you stay ahead of rising costs.