typing on computer

DOE Minimum Efficiency Standards for Commercial Water Heaters

The Department of Energy’s (DOE) new energy conservation standards for commercial water heaters will go into effect by October 2026. These new regulations are part of DOE’s efforts to reduce overall energy consumption in the United States.

All water heater manufacturers will be required to meet new minimum efficiency standards for commercial applications by October 2026.


A. O. Smith is committed to leading our industry in compliance.


We've got you covered with the informational videos, helpful information, tools, and and free certification courses at university.hotwater.com.

What You Need To Know

Gas Storage Standard

tank images

Min TE = 95%

Reduced Max Standby Loss

Gas Instantaneous Standard

tank images

Min TE = 96%

Residential-Duty Gas Storage Standard

commercial electric tank

UEF = 0.9297

Commercial Electric Tank

tank images

No Changes

TE = Thermal Efficiency

See details of the DOE standards

A. O. Smith's full suite of condensing products that meet the DOE's new standards

DOE-Compliant High-Efficiency Condensing Water Heaters

Cyclone® Xi

Cyclone® Mxi

Cyclone® LV

Cyclone® XL

A. O. Smith has you covered with alternatives to gas-fired models

Impacts of the New Standards

DOE ENERGY ROADMAP

The new standards:


...will require commercial water heaters to incorporate condensing technology to increase energy efficiency


...are projected to save businesses and operators $140 million per year in operating costs


...will significantly reduce carbon and methane emissions

Commercial Water Heater Energy Conservation Standards

Gas-Fired Storage

Current Standard:

Min TE = 80%


New Standard:

Min TE = 95%



Current Standard:

Max SL = (Q/800)+(110 x √Vr) Btu/h


New Standard:

Max SL = 0.86×[(Q/800)+(110 x √Vr)] Btu/h

Gas-Fired Instantaneous (Tankless)

Current Standard:

Min TE = 80%


New Standard:

Min TE = 96%


Max SL = N/A




TE = Thermal Efficiency; SL = Standby Loss (Btu/h); Q = Rated input (Btu/h); Vr = Rated storage volume (gal)

Residential-Duty Commercial Water Heater Energy Conservation Standards

Residential-Duty Commercial Gas-Fired Storage

>12 kW and ≤58.6 kW and ≤2 gal


Current Standard:

Min TE = 80%


New Standard:

Min TE = 96%


Max SL = N/A



UEF = Universal Energy Factor

Electric Instantaneous (Tankless)



Current Standard:

All Draw Patterns

UEF=0.80


New Standard (No Change):

All Draw Patterns

UEF=0.80


Max SL = N/A



Everything You Need to Know About Commercial DOE Standards

On October 6, 2026, the Department of Energy’s (DOE) new minimum efficiency standards for commercial water heaters will go into effect. A.O Smith is here to make it easy.

Still Have Questions?

The Energy Policy and Conservation Act, as amended (‘‘EPCA’’), prescribes energy conservation standards for various consumer products and certain commercial and industrial equipment, including Commercial Water Heating (‘‘CWH’’) equipment. EPCA also requires the U.S. Department of Energy (‘‘DOE’’) to periodically review standards. In this final rule, DOE is adopting amended energy conservation standards for CWH equipment.

The DOE has created an Industrial Decarbonization Roadmap that outlines a clean energy strategy to reduce gas (GHG) emissions in the American industrial sector.

DOE ENERGY ROADMAP

These changes will have the most direct impact on new commercial construction projects.

Beginning on October 6, 2026, only high-efficiency (condensing) gas commercial water heaters can be manufactured or imported into the United States.


Water heater professionals may still purchase commercial water heaters manufactured or imported before October 6, 2026, from existing retail or wholesale inventory. 


The new standards for residential (consumer) water heaters do not go into effect until May 6, 2029, but if you are considering a new water heater or looking at a new house, you’ll find helpful information on our Resources for Homeowners page.

The time to plan for the changes is now.

A. O. Smith has you covered with informational videos, helpful documents to download, and free certification courses at university.hotwater.com.

Why A. O. Smith?

 
market_leader
Market Leader

A. O. Smith is a leading manufacturer of both residential and commercial water heating technologies, including the #1 most specified commercial water heater.

creating_solutions
Commitment to Innovation

For more than 145 years, we’ve developed state-of-the art products that push new boundaries and improve the lives of our customers.

support
Best-In-Class Support

We combine cutting-edge technology with committed people who take pride in providing the very best support for our customers.

unmatched
Unmatched Quality

Our products are put through rigorous quality and endurance testing so now matter where hot water is needed, A. O. Smith can provide a solution you can count on.

Learn more about A. O. Smith