Guide to Water Heater Efficiency

Jennifer Ann • November 21, 2022

Old water heaters received an Energy Factor (EF) rating to determine efficiency. The higher the EF, the more efficient the unit.


After June 12, 2017, manufacturers switched to the
Uniform Energy Factor (UEF) for increased accuracy and consistency. SImilar to the old system, the higher the UEF, the more efficient the hot water heater. In this article, we will use the modern UEF rating. 


In order to determine a unit’s UEF, the unit is placed into one of four categories or
“bins”:


  • Very small 
  • First Hour Rating (FHR): < 18 gallons (tank)
  • Gallons Per Minute (GPM): < 1.7 (tankless)
  • Low 
  • First Hour Rating (FHR):  18 - 51 gallons (tank)
  • Gallons Per Minute (GPM): 1.7 - 2.8  (tankless)
  • Medium
  • First Hour Rating (FHR): 51 - 75 gallons (tank)
  • Gallons Per Minute (GPM): 2.8 - 4 (tankless)
  • High 
  • First Hour Rating (FHR): > 75 gallons (tank)
  • Gallons Per Minute (GPM): > 4 (tankless)


You can only accurately compare UEF ratings between two water heaters in the same bin. 


UEF measures FHR with a 125°F outlet water temperature. UEF measures GPM assuming a temperature rise of 67°F. 


What Is an Energy Efficient Water Heater?

You can trust tankless water heaters, heat pump water heaters, and solar water heaters to operate efficiently with heat pump water heaters and solar water heaters producing the best results. If you see the Energy Star sticker on the product, you can rest assured that the unit meets specific criteria regarding efficiency.

To establish how much you will save, compare your old water heater with your new water heater. The larger the discrepancy between the old water heater’s UEF and the new water heater’s UEF, the more money you will save. 


Upgrading to a tankless heater will save anywhere from 8 - 34% on water heating expenses. 


Energy Star claims that a heater pump water heater can save as much as $470 per year for a family of four and $4500 over the life of the water heater. 


A solar water heater can save 50 - 80% on water heating costs. 


The longer you have the new, efficient water heater, the more of a return you will get.

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