Electric Water Heater Sales Set New Record In 2024 While Gas Sales Decline

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Contemporary 2024 data from AHRI exhibits that gasoline storage water heater gross sales declined once more in 2024 to their second lowest stage since 2012. Gross sales of tanked water heaters that burn gasoline had been down by 115,000 models, or 3%, in 2024.

In the meantime, gross sales of electrical water heaters elevated by 3% or 150,000 models in 2024, surpassing the 5 million models offered mark for the primary time. 2024 marks the very best complete gross sales quantity ever for electrical water heaters.

These water heater gross sales developments are an enormous deal as a result of they present how the second greatest power finish use within the dwelling is probably going transferring away from fossil gas combustion and towards electrical water heating options.

Previously 3 years, the electrical storage water heater market has gained 5% market share over gasoline within the US, 50% versus 45%. That is possible the very best market share electrical storage water heaters have had way back to no less than 1954 — the earliest information we may discover on water heater shipments.

Electrical water heaters gross sales had been additionally 17% above their 20-year common in 2024, whereas gasoline water heater gross sales had been 5% under common.

What’s not clearly proven in these market numbers are warmth pump water heater (HPWH) gross sales (AHRI combines HPWH and resistance merchandise in a single class). Warmth pump water heaters have emerged within the final 15 years as an environment friendly water heating choice and use 2–5× much less power in comparison with gasoline or electrical resistance water heaters. HPWHs at the moment account for about 2% of complete nationwide water heater gross sales, however are the quickest rising water heater phase, growing 35% in 2023 (the final 12 months now we have information) to 190,000 models shipped. That 12 months HPWHs represented 4% of all electrical water heater gross sales nationwide.

Additionally not represented in these numbers are gross sales of tankless (instantaneous) gasoline water heaters, whose gross sales are tougher to trace. Business estimates put gasoline tankless at 19% of the general gasoline market in 2023, which might be proper round 1 million models offered. ENERGY STAR tracks certified tankless water heaters yearly and noticed a major lower in shipments in 2023, however that is possible as a consequence of a requirements replace the 12 months earlier than which meant fewer tankless gasoline water heaters certified as ENERGY STAR. Conversations with producers have indicated that the tankless gasoline water heater market is rising at round 10% yearly, which is down (in keeping with these conversations) from 20–30% progress charges in earlier years. Whereas a portion of the tanked gasoline water heater declines are possible a change to tankless gasoline, the general market share developments and document gross sales of electrical water heaters nonetheless stand.

The electrification motion appears to be influencing the water heating market.

New development is seeing a powerful transfer to electrical, with constructing codes in states resembling Washington and California closely encouraging electrical warmth pumps. In Washington State, for instance, constructing codes incentivizing warmth pump water heaters elevated the share of electrical water heaters put in in new development from 37% in 2015 to 83% in 2018.

Native air high quality businesses are additionally decreasing local air pollutants such as NOx and particulates from water heaters by adopting zero NOx equipment guidelines. These insurance policies, the primary of that are possible to enter impact in California in 2027, will part out gross sales of combustion water heaters.

New applied sciences are additionally rising within the water heater market. For instance, 120-volt plug-in HPWHs enable for simpler and cheaper gas-to-electric conversions by avoiding the necessity for brand spanking new wiring, breakers, panels, and even service upgrades. GE additionally simply introduced a 120-volt HPWH that can later be converted to a 240V HPWH, increasing the know-how choices on this product class.

2024’s numbers present a continued macro shift within the water heater market away from gasoline and in the direction of electrical water heating. Constructing codes, air high quality businesses, and new, extra environment friendly applied sciences like warmth pump water heaters are possible driving these developments. With a new water heater appliance standard set to take impact in 2029 that can require considerably larger effectivity for electrical water heaters, a big portion of those gross sales will possible transfer to warmth pumps, probably making the warmth pump water heater the dominant water heater by the top of the last decade.