How Energy-Efficient Water Heaters Add Value to New Construction
May 13, 2025
As homebuyers become increasingly focused on sustainability and energy savings, builders must consider every component of a new home to maximize efficiency and long-term value. One key feature that can significantly impact energy consumption is the water heater.
American Standard Water Heaters and HTP Water Heaters are now HomeSphere brand partners. Installing an energy-efficient water heater, such as those from American Standard or HTP, can enhance a home's appeal, reduce operational costs, and contribute to environmental sustainability. Here's why energy-efficient water heaters are a must-have in new construction.
Lower energy costs for homeowners
Traditional water heaters account for a significant portion of a home’s energy usage. Energy-efficient models, such as tankless water heaters, heat pump water heaters and high-efficiency gas or electric models can reduce energy consumption by up to 30 to 50%. This translates into lower utility bills, which is a strong selling point for new buyers looking to save on long-term expenses.
Environmental benefits and compliance with regulations
Many local and federal building codes are moving toward higher energy efficiency standards, including requirements for water heaters. Installing ENERGY STAR® certified models can help builders meet or exceed these regulations while reducing a home's carbon footprint. Sustainable construction practices not only benefit the environment but also align with growing consumer demand for eco-friendly homes.
Long-term durability and reduced maintenance
Energy-efficient water heaters tend to have longer lifespans than traditional storage water heaters. They also require less frequent maintenance, reducing homeowner headaches and minimizing post-sale service calls for builders.
Smart home integration and convenience
Modern energy-efficient water heaters often come with Wi-Fi connectivity, smart monitoring systems and leak detection technology. These features appeal to tech-savvy homebuyers who value convenience, remote control options and advanced safety features in their home systems.
Increased home value and marketability
A home equipped with an energy-efficient water heater is more attractive to buyers, particularly those who prioritize sustainability and cost savings. High-efficiency homes often sell faster and at higher prices, as they provide both immediate and long-term benefits. In competitive housing markets, highlighting energy-efficient features can set a builder apart from the competition.
Builder incentives and rebates
In addition to HomeSphere's rebate program, many state and federal programs offer rebates and tax incentives for builders who incorporate energy-efficient appliances in new homes. By installing American Standard or HTP energy-efficient water heaters, builders may qualify for financial incentives that help offset construction costs while providing additional value to homeowners.
For builders, incorporating energy-efficient water heaters in new construction is a smart investment that adds value, marketability and sustainability to a home. Homebuyers benefit from lower energy bills, increased comfort and environmentally-friendly living, while builders gain a competitive edge in an increasingly eco-conscious housing market.
By choosing American Standard or HTP energy-efficient water heaters, builders can ensure long-term satisfaction for homeowners while enhancing the reputation of their construction projects.
Interested in rebates on American Standard or HTP Water Heaters?
Builders who install American Standard and HTP water heaters qualify for exclusive rebates through HomeSphere, helping to reduce costs while offering energy-efficient solutions that add value to new construction.
Rebates are available for both single-family and multifamily builders who join HomeSphere. Earn rebates through the HomeSphere Rebate Program, and check our full list of partners to see what other rebates you could be earning through our program.
