On its surface, the forecast for the electric water heater market looks sunny. Between 2017 and 2022, the market is expected to grow steadily – researchers predict that it may rise by over 7% during each year of that period. This is, in part, because by 2015, the real estate and construction industries had finally recovered from the 2008 recession.
That said, there may be challenges ahead for this industry. Electricity prices have been rising for the past few years, and consumers may come to prefer solar powered water heaters in the near future, as experts have predicted. There are, however, two trends that may continue to drive consumers to electric water heaters:
1. Consumers are increasingly seeking out tankless water heaters.
Tankless water heaters provide a number of advantages to consumers, so it’s easy to see why they have become so popular in the United States. First and foremost, they are environmentally friendly. They help protect the environment by reducing carbon dioxide emissions into the atmosphere. And, since they’re smaller than heaters that store water in tanks – often by over two-thirds – the tankless varieties take up significantly less space in landfills at the end of their lives. Many manufacturers even use recycled materials to produce their water heaters.
But what makes this option particularly attractive to both individual and commercial buyers is its potential to save users money. Though the upfront costs of installing best gas tankless water heaters can be high, research has shown that they do lead to savings over time. Their energy efficient design can help users save on their monthly water and electricity bills, and operating costs are generally very low. In addition, tankless heaters often last up to ten years longer than standard tank heaters. This means that home and business owners will save on their long-term maintenance costs if they switch to tankless.
2. New government policies are pushing for greater domestic energy efficiency.
A number of green energy policies have been implemented in recent years, as the public increasingly demands greater sustainability in the country’s energy production and consumption practices. Because water heating accounts for almost 20% of the average home’s energy usage, the Department of Energy (DoE) has focused its efforts on helping Americans control their hot water consumption. In addition to common sense strategies for simply using less hot water each day, the DoE suggests purchasing electric water heaters. That is because this type of energy is widely available throughout the United States, and because electric heaters have been shown to save users money on their energy bills while reducing daily energy consumption.
The National Appliance Energy Conservation Act (NAECA), which came into effect in 2015, has set new, stringent standards for water heater producers. This has the dual effect of saving even more people money on their energy bills – as more are now able to afford the highly efficient models – and driving consumers back to electric heaters, in which manufacturers have already heavily invested.