CEE Publishes Updates to Performance Requirements for HVAC & Water Heaters

The Consortium for Energy Efficiency, the nonprofit member-based organization of efficiency program administrators, research organizations and efficiency advocates throughout the United States and Canada, published updates to the CEE Residential Electric HVAC and Water Heating specifications. These performance requirements serve as the basis of eligibility for federal 25C tax credits up to $2,000 enabled by the Inflation Reduction Act, as well as for utility financial incentives. The revised levels were effective Jan. 1.

These new revisions reflect market advancements in efficiency, heating capacity and the ability for equipment with embedded demand-response capabilities to support grid reliability. The specifications are designed to ensure products recognized by CEE deliver cost-effective energy savings that will deliver customer bill savings and ensure comfort.

Residential electric HVAC equipment updates

CEE residential electric HVAC equipment specifications cover central air conditioners and air-source heat pump equipment. Highlighted updates include:

• Creating two pathways for eligibility. One pathway for heating-dominated applications and whole home electrification scenarios; the other pathway is for cooling-dominated and dual-fuel applications.
• Adding an Advanced Tier for split ASHPs that optimizes for cold climate conditions, consistent with the U.S. Department of Energy DOE Cold Climate Heat Pump Challenge specification.
• Referencing the industry consensus definition of grid-flexible heat pumps (AHRI Standard 1380) for load management requirement, and requiring the criteria for all tiers beginning in January 2026.

Residential water heating updates

The primary driver for the residential electric water heater specification revision is to maximize the energy savings and demand flexibility potential of heat pump water heater programs. The revised specifications include:

• Referencing the industry consensus for grid-flexible water heaters (AHRI Standard 1430) for automated demand-response requirements; the criteria is required for all CEE tiers beginning in January 2026.
• Creating a more stringent Advanced Tier with ≥ 3.30 UEF for split-system and 120V heat pump water heaters that will recognize market leadership by manufacturers.

Residential room heat pumps initiative

Over the course of the last year, CEE has been working to develop a first-of-its-kind Room Heat Pump specification that enables more equitable electrification and decarbonization. CEE originally developed this initiative in association with New York’s Clean Heat for All Challenge.

Room Heat Pumps are reverse-cycle room air conditioners and existing models combine the efficiency of a mini-split into a packaged, portable form factor. These products have the potential to replace room air conditioners, improving upon cooling efficiency while adding efficient heating capabilities. Beyond the notable performance achieved by models that meet CEE’s specification, the unique form factor of room heat pumps provides opportunities for renters and multi-family building occupants to have improved access to new efficient technologies. For more details, click here.