HEALTH AND SANITATION 31
Be prepared: A shift in water heating is coming
By
By Mike Flenniken
As traditional electric tanks / geysers are phased out( elsewhere in the world), Gregg Holladay explains what inspectors must know about heat pump operation, clearances, condensate and smart recirculation.
When Holladay stepped to the podium at IAPMO’ s Annual Education and Business Conference, he got right to the point about a coming shift that will affect every US plumbing inspector and installer in the industry: under new US Department of Energy standards taking effect in 2029, manufacturers will no longer be allowed to produce residential standard electric water heaters larger than 160 litres.
The mandate will usher in a nationwide transition to heat pump water heaters, a technology that uses a fraction of the energy of traditional models and is poised to redefine residential water heating in the US. This directly affects about 50 % of American homes that already have electric water heaters, not to mention those who might fuel switch from gas to electric heat pump water heaters, which is encouraged in some states like California.
Holladay, business development manager for specialty markets at Bradford White, said his mission wasn’ t to sell a product but to prepare the industry for a fundamental shift.
“ All of the other manufacturers know that I’ m here to help further the industry and the partnership that we have with you as instructors and installers for heat pump water heaters,” he said.“ The industry is about to change and it’ s going to affect everybody equally.”
He began with the basics.
“ Did you know a refrigerator’ s a heat pump?” Holladay asked.“ It says,‘ You put something hot inside, and my job is to move that heat from inside to outside.’”
Heat pump water heaters operate the same way— by transferring heat rather than creating it.
“ Heat pump water heaters absolutely work,” he said.“ They deliver on two promises: same volume of water, same recovery, but it delivers on the second promise, which is about a 75 % reduction in the cost of operation.”
Compared with conventional electric units that operate at roughly 90 – 93 % efficiency, Holladay said a 65-gallon( around 246l) heat pump model can reach about 420 % efficiency.
“ That means you spend a dollar to heat water, and you get USD4.20 in hot water,” he said.
“ If I’ ve got a water heater that saves you about USD400 a year and it has a 10-year warranty, that’ s about USD4 000 you don’ t pay the power company,” he added.“ The water heater pays for itself by definition; no other water heater has ever been able to do that.”
Holladay reminded the audience that the federal tax credit – a 30 % deduction of the installed cost, up to USD2 000 – remains available through the end of 2025. But the bigger deadline is 2029.
“ In just three and a half years, every manufacturer has to cease manufacturing residential electric water heaters as you know them today above 35 gallons( around 132l),” he said.“ All of a sudden water heaters will be replaced with heat pump water heaters.”
Holladay said many contractors hesitate to embrace heat pump technology until they understand the financial benefits of encouraging homeowners to replace ageing units early. Once people realise how much money they lose each year on energy costs, he said, they are far more willing to switch.
He also warned that unprepared installers will create inspection problems when heat pump models become the only option available.
“ There will be contractors out there that said,‘ I don ' t want to learn about that’ until the day they walk up to a counter and that’ s all they can buy to replace an electric water heater,” he said.“ Do you think they’ re going to read the instructions? No. They’ re going to just put it in like they did every water heater they had before, and your life is going to get turned upside down.”
David Viola, IAPMO CEO In the spirit of the sharing of unique experiences that shape the plumbing industries in our respective nations, the following article offers insight into an important transition underway in the United States that may also hold valuable lessons for plumbing professionals elsewhere. Written by IAPMO Senior Communications Specialist Mike Flenniken, it is the next in a regular series of similar articles that will run in this magazine.
Dave Viola IAPMO CEO
“ Holladay pointed out a major difference in how various brands are built.”
October 2026 Volume 32 I Number 08 www. plumbingafrica. co. za