01/16/2026
🚨 Colorado Homeowner Update 🚨
A new Colorado law went into effect on January 1 related to appliance efficiency standards. There’s been a lot of discussion about water heaters and furnaces, so I reviewed the actual bill and spoke with trusted industry sources. Here’s what homeowners should know:
❓ What’s affected?
This law applies to:
- Natural gas water heaters
- Fan-type central furnaces
If you have gas-powered systems, pay attention—but there’s no need to panic.
❓ What changed?
Manufacturers are now required to meet higher energy-efficiency and lower NOx emission standards for new gas water heaters and furnaces.
🔴 What this means for cost:
New systems that meet these standards will cost more.
- Some reports suggest prices could increase significantly (up to 3x)
- My trusted HVAC company and plumber both estimate about a 40% increase for newer models
Pricing will vary, so shopping around is important.
🟡 Do you need to replace your system now?
- Water heaters under 10 years old and furnaces under 15 years old that are working well do not need immediate replacement
- If your system is 20+ years old, it may be worth considering replacement sooner rather than later
🏠 Thinking about selling your home?
If you plan to sell in the next year and have an older system, buyers may negotiate replacement costs—at the new higher prices. Replacing sooner could help avoid that.
🟢 Ways to reduce potential costs:
✔️ Ask plumbers and HVAC companies about 2025 inventory. There is still inventory available, and these units can be sold at 2025 pricing until they run out.
✔️ Consider a home warranty. For around $500 per year, a home warranty can help cover repair or replacement of water heaters and furnaces—without being impacted by the new law. Home warranties are available to all homeowners, not just buyers.
📣 Takeaway:
This new law does not mean you need to rush into replacing your water heater or furnace. With smart planning, homeowners can still manage upgrades at a reasonable cost.
If you have questions or want help connecting with trusted professionals, feel free to reach out.