DOE Finalizes Energy Efficiency Standards for Residential Furnaces

WASHINGTON, D.C. — The U.S. Department of Energy (DOE) finalized congressionally mandated energy efficiency standards for residential gas furnaces that will slash household utility costs by $1.5 billion annually and significantly reduce greenhouse gas emissions. These standards, which take effect late 2028, require non-weatherized gas furnaces and those used in mobile homes to achieve an annual fuel utilization efficiency of 95 percent, conserving energy and improving residential heating. DOE expects these standards to cumulatively save consumers $24.8 billion on their energy bills over 30 years and cut harmful carbon and methane emissions that fuel the climate crisis.

“At the direction of Congress, DOE is continuing to review and finalize energy standards for household appliances, such as residential furnaces, to lower costs for working families by reducing energy use and slashing harmful pollutants in homes across the nation,” said U.S. Secretary of Energy Jennifer M. Granholm. “Today’s measure, along with this Administration’s past and planned energy efficiency actions, underscores President Biden’s commitment to save Americans money and deliver healthier communities.”

These furnace efficiency standards were last updated in 2007. With these modernized standards, starting in late 2028, residential gas furnaces will provide an annual fuel utilization efficiency of at least 95 percent—reducing waste by converting nearly all of the gas used into heat for the living space. This standard is readily achievable by modern condensing furnaces, which use secondary heat exchangers to capture excess heat from the furnace’s exhaust gases.

As of 2022, residential gas furnaces account for approximately 19 percent of annual residential energy use in the United States. DOE expects that updating efficiency standards for these appliances will, over 30 years, cut carbon emissions by 332 million metric tons (roughly equivalent to the combined annual emissions of 42 million homes, or approximately 34 percent of homes in the United States) and cut methane emissions by 4.3 million tons (an amount equivalent to the combined annual emissions of 14 million homes or roughly 29 coal plants).