US water heating market update 2021
With 1.3 million gas water heaters sold to Californian homes – or one quarter of the US market – it is no surprise the impetus for tighter building regulations came from the West. In July 2019, Berkeley, California became the first city in the nation to ban natural gas connection in new construction and large renovation projects. Brookline, Massachusetts, Seattle and 42 cities and counties in California also announced gas phaseouts.
Oregon became the second state, after Washington, to adopt a standard for grid-enabled water heaters. The standard requires electric water heaters to be able to automatically adjust their power usage in response to changes in electricity prices or the needs of the power grid. Nevada legislators authorised their state energy office to adopt similar grid-enabled standards for energy-intensive appliances like air conditioners and water heaters.
While some states are adopting increasingly ambitious clean electricity standards and/or greenhouse gas emissions reduction goals to move away from fossil fuels, opposition remains strong. Laws to protect natural gas use have been adopted in Arizona, Louisiana, Oklahoma and Tennessee. Similar laws have been proposed in Texas, Florida, Georgia, Iowa, Kansas, Missouri, Pennsylvania, Utah, Indiana, Arkansas, Kentucky and Mississippi. Considering half of the US water heating market is driven by the sales of gas-fuelled units (USD 3.9 billion in 2021), industry experts foresee a slow shift in technologies.
BSRIA’s research points towards moderate acceleration of sales of electric storage water heaters, whereas those of all gas-driven units have been forecast to plateau in the coming years.
The imbalance between the cost of gas and electricity is a clear obstacle to the refurbishment of systems. As most buildings in the US were built before the 1980s, additional enhancements of the building structure are often required to accommodate new technology, adding to the final bill.
Another trend emerging in both the residential and the commercial water heater market is the gradual rise of gas-fired condensing technology, for both storage tank and tankless type water heaters. The upgrade of gas water heater is growing to meet energy efficiency standards.
More information on the world residential and commercial water heating markets is available from BSRIA’s library of reports.
This article originally appeared under the headline, 'Water heating market update 2021' on the BSRIA website. It was published in November 2021.
--BSRIA
[edit] Related articles on Designing Buildings
- American architecture and construction.
- BSRIA articles on Designing Buildings.
- Greenhouse gases.
- Heating ventilation and air conditioning HVAC.
- Hot water.
- Natural gas.
- Types of domestic heating system.
- Water heating.
[edit] External resources
Featured articles and news
Apprenticeship announcement by the Prime Minister
Welcomed but with call for more actionable detail.
Heat pump announcements, what homeowners need to know
An 'ultimate guide to heat pumps' from a heating company.
Construction contract awards reach £7.1bn in February
Their highest level in seven months.
The journey to sustainability in heritage
Research is the key to better understanding.
Heritage approaches to adaptation, mitigation and loss.
Bridging the gap between policy, finance and installation.
Development on brownfield land
Definition, background, policy and the latest consultation.
With the Design Framework for Building Services.
Retrofit of Buildings, a CIOB Technical Publication
Pertinent technical issues, measures and the roles involved.
ECA joins HSE campaign to support mental health
Working Minds’ five simple steps based on risk assessment.
Mental health in the construction industry
Mental health issues in brief with related articles.
Transitional arrangements, Building Control and the BSR.
For pre-October buildings with substantial progress by April.
Why quality counts in domestic ventilation systems
From products, to systems to the installation.
Empowering the Future with CIOB Academy
Lifelong learning, upscaling, and reskilling for the built environment.
Comments
The cost of green electricity has to be made cheaper than gas but still we are comparing the cost of electricity generated by renewable sources with fossil fuels. Instead we should be showing how green electricity is cheaper per kwh than gas.The cost of green electricity has to be made cheaper than natural gas.