Major Changes Coming to Commercial Water Heaters in 2026

Noah Beson
2026-03-12T09:59:52-04:00

What the New DOE Efficiency Standards Mean for Your Next Replacement

If you install or maintain commercial water heaters, an important industry change is coming in 2026 that may impact the equipment you rely on today.

The U.S. Department of Energy (DOE) has announced new energy conservation standards for commercial gas water heaters, which will take effect on October 6, 2026. These new regulations require higher efficiency levels, which means many traditional non-condensing commercial gas water heaters will no longer be manufactured after this date.

While this regulation affects all manufacturers across the industry, several popular Rheem and Ruud models are among the first confirmed to be discontinued.

For contractors and building owners, this means planning ahead for future replacements.

Rheem Commercial Water Heater Models Being Discontinued

To comply with the upcoming DOE standards, Rheem has announced that several non-condensing commercial gas water heater lines will be discontinued.

Affected Rheem and Ruud models include:

Universal (G Models)

Universal Low NOx (GN Models)

Universal Ultra Low NOx (GNU Models)

Xtreme (GX Models)

Medium Duty (G75 / G100 Models)

Medium Duty Ultra Low NOx (G75UN / G100UN Models)

Power & Power Direct Vent (GPV / GPVD Models)

Several Raypak commercial water heating models are also affected.

These products are being phased out because they cannot meet the new DOE efficiency requirements.

When These Models Will Become Harder to Find

Rheem will stop accepting new factory production orders after June 30, 2026.

For customers, this does not mean the products disappear immediately. Distributors like Wholesale Water Heater will continue to sell these units as long as inventory remains available.

However, once factory production stops, existing stock will begin to decline across the market. Contractors who rely on these models for replacements may want to plan ahead before inventory becomes limited.

Why These Changes Matter for Replacements

Many buildings today use non-condensing commercial water heaters. The new DOE standards are pushing the industry toward higher efficiency equipment, often involving condensing technology.

This can affect installations in several ways:

Condensing units often require different venting systems

Installations may need condensate drainage or neutralization

Replacement projects may involve additional planning or upgrades

Water heater prices are significantly higher

While these changes will improve energy efficiency and reduce emissions, they may also increase installation complexity compared to traditional units.

What Will Replace These Models?

Manufacturers are already introducing and expanding higher-efficiency options that comply with the new DOE standards.

Replacement options may include:

High-efficiency commercial tank water heaters

Commercial tankless water heaters

Heat pump water heating systems

Electric water heaters

Over the next year, more product announcements and replacements for discontinued models are expected.

What You Should Do Now

If you regularly install or service commercial water heaters, now is a good time to prepare.

Consider:

Reviewing the equipment you commonly install

Planning for future replacements of discontinued models

Securing units early for projects that depend on specific equipment

We're Here to Help

At Wholesale Water Heater, we are closely monitoring the upcoming DOE changes and working with manufacturers to ensure our customers have access to the equipment they need.

If you rely on any of the models being discontinued, our team can help you:

Check current inventory availability

Identify compliant replacement options

Plan for upcoming installations

Contact us anytime to discuss your upcoming water heater projects or to check availability on affected models.