In a decisive move to strengthen the domestic clean energy supply chain, the U.S. Department of Energy (DOE) announced a $45 million funding opportunity on April 22, 2026, specifically aimed at expanding and modernizing the manufacturing of energy-efficient electric appliances—with instant, tankless, and smart electric water heaters listed as primary categories. The initiative, part of the broader “Building a Better Grid” and “Energy Efficient Homes” programs, is designed to reduce reliance on foreign components while accelerating the adoption of grid-interactive, high-efficiency water heating technologies across the United States.

Top U.S. water heater manufacturers and smart home integrators have published performance updates in the past seven days, demonstrating the operational and financial benefits of modern electric, instant, tankless, and smart water heating systems.

Over the past seven days, the U.S. electric water heater industry has experienced a significant surge in consumer and commercial demand, driven by updated federal energy efficiency standards, increased residential remodeling activity, and rapid adoption of smart home technology. New weekly data from the Air-Conditioning, Heating, and Refrigeration Institute (AHRI) confirms that sales of electric water heaters, instantaneous tankless water heaters, and smart instant water heaters rose 16.8% week-over-week, outpacing all other residential water heating categories.