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Summary:
California is moving to phase out gas water heaters because they account for around 10% of the state's total greenhouse gas emissions. In the Bay Area, bans on purchasing new gas water heater sales are scheduled to begin as early as 2027 and be implemented state-wide by 2030. Additional rules from the Department of Energy (DoE) make it mandatory for electric storage tank systems to rely on high-efficiency heat pump technology instead of relying on electric resistance alone.
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Climate change is a pressing global issue that requires decisive action from all sectors of society. The California Air Resources Group is rolling out new regulations that ban the sale of gas water heaters starting in 2030 in a bold move to address this challenge.
Measures like these reduce California's carbon footprint and contribute to our state's ambitious climate goals, but they can also affect you as a customer. Learn why these changes are happening and what you need to do in this guide, then send us a message for help with the transition!
How Gas Appliances Affect Climate Change in California
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 Pump Water Heaters
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 Home Services so we can help you find the right fit.
Related: Which Water Heater is Right for You?
Comparing Your Options
| Feature | Electric Water Heaters | Heat Pump Water Heaters |
|---|---|---|
| Greenhouse Gas Emissions | None | None |
| Energy Efficiency | Moderate | High |
| Upfront Cost | Lower | Higher |
| Operating Cost | Higher | Lower |
| Installation Space | Compact | Requires more space |
| Lifespan | 10–15 years | 10–20 years |
| Average Upfront Cost | $800–$1,500 | $1,200–$6,000 |
| Maintenance Requirements | Minimal maintenance needed | Occasional servicing of the compressor and airflow |
| Environmental Impact | Depends on electricity source (renewable vs. fossil fuel) | Low |
| Heat Recovery Time | Slower compared to other options | Faster due to efficient heat transfer |
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. We gathered some of the most important takeaways for you so you can get answers fast and stay informed.
You need to know about:
- 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 still aren't sure whether these rules apply to you, give us a call. We can help you identify what you have in your home now so you know where you stand and whether you need to upgrade
A Note on Special Needs and Custom Installations
Water heater upgrades are relatively straightforward, but there are some scenarios where the job can be a little more complicated.
The most common examples include:
- A lack of available space. You might need to build a new area capable of housing your new water heater if you don't have enough clearance around the unit.
- Pre-existing problems with venting. Your vents or ductwork may need to be adjusted to better accommodate your new heater.
- Problems with your electrical supply. This is relatively rare, but some homeowners may also need to update their electric panel to properly support a 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, no matter what hurdles you encounter.
FAQs About Water Heater Regulations in the Bay Area
When should I replace my gas 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 one, now is the time to replace it with a device that's more eco-friendly and efficient.
Caccia can provide quotes on replacements and help you select the right water heater for your needs based on how you use your water. We're also well-versed in accessing rebates! Check our rebate directory or ask us how we can help you make the transition more affordable.
Which water heaters are affected by the new regulations?
The new energy efficiency regulations apply to gas, electric, oil, or propane water heaters manufactured after April 16, 2015. Tankless water heaters aren't usually affected as they already meet higher standards.
The rules don't retroactively apply to water heaters made before this date, but if you have an older device, making the switch can still help you save money. The new standards are expected to lower residential energy consumption from these devices by up to 21% across the board.
Will prices increase because of 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 around $100 more, but long-term savings help offset this extra up-front cost. The DoE estimates that upgrading could save you $1,868 over the life of the appliance!
Are tankless water heaters also 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: Why Caccia Home Services is Your Top Choice for Tankless Water Heaters
Embrace Change With Caccia Home Services
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. Schedule your water heater replacement today to take the first step toward a greener future!
