How much more efficient is a new electric water heater?
James Craig
Published Mar 05, 2026
As the result of recently updated efficiency standards, water heaters less than 55 gallons now have a 4 percent boost in efficiency and water heaters 55 gallons or more have efficiency gains of 25 to 50 percent, depending on the technology used—heat pump or condensing. (See water heater types, below.)
Are old or new water heaters more efficient?
A. New water heaters are more energy efficient than old ones, but there is no need to replace an old one which is not leaking. When the tank starts to run out of hot water, for example after many long showers, the top element comes on instead to supply hot water faster.
What is the best electric water heater on the market?
Best Electric Water Heaters
| RANK | PRODUCT NAME | |
|---|---|---|
| 1 | Rheem Performance Platinum Hybrid Electric Water Heater 5/5 | Buy now |
| 2 | Rheem Performance Platinum Electric Water Heater 4.5/5 | Buy now |
When do water heaters have to be more efficient?
Water heaters produced after April 16, 2015 must conform to new energy efficiency standards. These translate to a mandatory increase of 3% – 30% greater efficiency vs. current models.
What are the new energy standards for water heaters?
Water heaters produced after April 16, 2015 must conform to new energy efficiency standards. These translate to a mandatory increase of 3% – 30% greater efficiency vs. current models. The amount varies by tank size based on formulas. The larger the tank, the more the efficiency is required.
Which is the best Energy Star certified water heater?
ENERGY STAR certified water heaters are an easy choice for energy savings, performance, and reliability. They use less energy than standard models, saving homeowners money on their utility bills while helping protect the climate.
When do new water heaters have to be installed?
So you can start saving energy now, at around the price you might pay next year. Current hot water heater tank styles can still be installed after April 16, 2015 but inventory will eventually run out. Installers and suppliers are stocking the last of the available current style tanks as we know many people will want them.