Summary:

• California is taking a bold step toward addressing climate change by rolling out new regulations that ban gas water heaters. In some areas, like San Mateo, the changes will become active as early as 2027.
• Gas appliances contribute to greenhouse gas emissions, but alternatives like electric and heat pump water heaters are much more eco-friendly. Upgrading to one of these two options can help you save money on energy bills and cut your carbon footprint.
• California’s new regulations require that all water heaters manufactured after 2015 meet higher energy efficiency standards. The DOE is separately rolling out new rules that affect existing and new water heaters.
• Upgrading your water can come with higher upfront costs and installation challenges, but rebates and long-term savings can help. Working with a professional is the best way to find the right fit for your home.

Climate change is a pressing global issue that requires decisive action from all sectors of society. In a bold move to address this challenge, the California Air Resources Group is rolling out new regulations that ban the sale of gas water heaters starting in 2030. 

This significant step aims to reduce California’s carbon footprint, and is expected to contribute to the state’s ambitious climate goals. Learn why this change is happening and what you need to do in this guide—then send us a message for help with the transition!

Related: The Best Water Heater Temperature Setting for You

How Gas Appliances Affect Climate Change

Gas-powered appliances are a staple in American homes because they’re affordable and effective, but they also have serious drawbacks. Natural gas combustion releases harmful greenhouse gases like carbon dioxide and nitrogen oxide into the atmosphere.

According to the California Air Resources Group (CARB), commercial and residential buildings contribute up to 10% of all greenhouse gas emissions. The board’s decision to ban the sale of gas water heaters by 2030 recognizes the need to transition away from fossil fuel-dependent technologies like these so we can embrace cleaner alternatives.

Alternatives for California Residents

As the ban on gas water heaters approaches, California residents will need to consider alternative options for their homes. Viable alternatives include electric water heaters and hybrid/heat pump water heaters, but let’s take a look at the pros and cons of each option.

Electric Water Heaters

Electric water heaters use electricity to heat water. This eliminates the emissions associated with gas combustion, helping to lower your carbon footprint.

Pros

• Available in tank or tankless formats.
• Widely available and relatively easy to install.
• Lower upfront costs compared to heat pumps.

Cons

• Energy bills may be higher with heavy use.
• Slower to recover hot water compared to gas appliances.
• May be unsuitable for large households with constant demand.

Heat Pumps

Heat pump water heaters are energy-efficient systems that extract heat from the air surrounding your home or the ground. They’re especially ideal here in California.

Pros

• More energy-efficient than gas or electric.  
• Increased efficiency often results in lower energy bills.
• Generally more durable than electric water heaters.

Cons

• Higher upfront cost to adopt and install when switching from gas.
• Needs 450 to 700 cubic feet of free air space for efficient operation.
• Generates up to 55 decibels of sound when active.

For a closer look at the features and benefits of each option, take a look through the table below. Or, give us a call at Caccia Plumbing so we can help you find the right fit. 

Comparing Your Options

Related: Which Water Heater is Right for You?

When Should I Replace My Old Water Heater?

The Bay Area is set to ban gas water heater sales starting in 2027. If you own a home in the area and still have a gas water heater, now is the time to consider replacing your old gas water heater with a more eco-friendly alternative.

Caccia Plumbing can provide quotes on replacements and help you select the right water heater for your needs. We’re also well-versed in accessing rebates! Ask us how we can help you take advantage of incentives to make the transition affordable.

Related: The Difference Between Tank & Tankless Water Heaters Explained

A Breakdown of the Most Impactful Upcoming Regulations

Customers in San Mateo and the Bay Area understandably have questions about the upcoming regulations and whether they should know about other guidelines currently on the table. To answer these and other questions, here are some of the most important regulations and why they are so important to consumers, manufacturers, and many others.

• Updates to Existing Water Heaters. A new DOE rule from May 2024 sets standards for water heaters across the United States. Electric storage water heaters with tanks over 35 gallons will need to have heat pump technology. Some gas-powered units may also need a damper or maximum temperature reductions.
• New Standards for Gas Tankless Water Heaters. At the end of 2024, the DOE finalized new standards that require new gas tankless water heaters to use at least 13% less energy. This is less impactful here in the Bay Area, but it’s still a sign that the US is moving away from gas-powered appliances.
• California’s Ban on Gas Water Heaters. This is the core regulatory change that will impact new and existing homes in California. The Bay Area is rolling out this change the fastest by making the ban effective in 2027.

If you aren’t sure whether it applies to you, reach out to us—we can help you identify what you have and replace it.

Which Heaters are Affected?

The new energy efficiency regulations apply to gas, electric, oil, or propane water heaters manufactured after April 16, 2015. It’s important to note that they do not retroactively apply to water heaters made before this date.

Even though existing heaters manufactured prior to 2015 aren’t directly impacted by the regulations, you should still consider an upgrade. The new standards are expected to lower energy consumption by between 3 and 30 percent for most homeowners. By making the switch, you’re saving money and helping protect our world.  

Are Tankless Water Heaters Affected?

If you already have a tankless water heater, chances are you have nothing to worry about! That’s because the vast majority of tankless water heaters already have an energy efficiency rating of at least .82 or higher, which means they comply with the new regulations.

Related: Save On Your Next Plumbing Service With Caccia!

Will Prices Increase Due to the Regulations?

Upgrading can help you save money on your monthly water and heating bills, but buying a new water heater does come with an initial upfront cost. Prices may temporarily increase as manufacturers redesign production lines—and that means you might pay more out of pocket. 

It’s hard to predict just how much of an increase people can expect. Some figures suggest that homeowners can expect to pay $100 or more for a new water heater that meets or exceeds regulations. But the Department of Energy claims most consumers will save an average of $1,868 over the life of their new appliance, softening the impact.

A Note on Special Needs and Custom Installations

Water heater upgrades are relatively straightforward in most homes, but there are some scenarios where it can become more complex. The most common examples we see in Bay Area homes include:

• A lack of space to install the water heater. You might need to build a new area capable of housing your new water heater.
• Problems with venting. Your vents or ductwork may need to be adjusted to better accommodate your new heater.
• Problems with electrical supply. This is relatively rare, but some homeowners may also need to update their electric panels to properly support their new water heater.

Don’t let problems like these hold you back from getting better efficiency and saving money on your energy bills! We can help you find a path forward.

Related: Why Caccia Plumbing is Your Top Choice for Tankless Water Heaters

Embrace Change With Caccia Plumbing Inc.

The California Air Resources Group’s decision to ban the sale of gas water heaters by 2030 is a commendable step toward mitigating climate change. As responsible residents of California, it’s our duty to embrace this change and transition to more sustainable options.

We’re standing by to help Bay Area homeowners make this transition. With over 45 years of experience in water heater installation and repair, you can trust us to help you find the right product and get the job done. Our goal is to become your partner in embracing greener technologies that help combat climate change!

Take the first step toward a more sustainable future—schedule your water heater replacement today!