Purchasing Energy-Efficient Boilers

This page provides acquisition guidance for various boiler types. Boilers are subject to different efficiency requirements based on their size, output type (steam or hot water), and fuel input.

Federal laws and requirements mandate that agencies purchase either ENERGY STAR®-certified products or products that meet Federal Energy Management Program (FEMP)-designated efficiency levels except as specifically exempted by law. The FEMP-designated program covers boilers with an input rating greater than 2.5 million Btu/hr. EPA’s ENERGY STAR program covers smaller boilers, commonly referred to as residential and small commercial boilers.

High-pressure boilers (i.e., those used in industrial and cogeneration applications) and boilers meeting the definition of a “hot water supply boiler” are excluded from this definition.  This aligns with the definition of boilers found in the Department of Energy minimum efficiency standards (10 CFR Part 430), with which all manufacturers need to comply.

This acquisition guidance was updated in September 2024.
 

How To Find Product Efficiency Requirements

For large commercial boilers covered by FEMP, federal purchases must meet or exceed the minimum efficiency requirements and thermal efficiencies listed in Table 1. These efficiency levels can be voluntarily adopted by non-federal organizations, institutions, and purchasers.

The U.S. Environmental Protection Agency (EPA) provides efficiency levels and product specification information for small commercial boilers and for residential boilers on its ENERGY STAR website. Manufacturers meeting these requirements are allowed to display the ENERGY STAR label on complying models. Federal buyers can use ENERGY STAR's list of certified small commercial boilers and list of residential boilers to identify or verify complying models.

Table 1. Efficiency Requirements for Boilers

Boiler TypeSize (Input)OutputEfficiency Requirementsa
Gas-FiredOil-Fired
ResidentialLess than 300,000 Btu/hrHot WaterENERGY STAR-Certified Residential Boilers
Packaged Boiler / Small Commercial300,000–2,500,000 Btu/hrHot WaterENERGY STAR-Certified Commercial Boilers
Large Commercial2,500,000–10,000,000 Btu/hrHot WaterEc ≥ 96.0% Ec ≥ 89.0%
SteamEt ≥ 83.7%Et ≥ 85.8%

a Both thermal efficiency (Et) and combustion efficiency (Ec) are based on 10 CFR Part §431.86 
- Uniform test method for the measurement of energy efficiency of commercial packaged boilers.

Note: There is an energy efficiency purchasing requirement for all covered product categories; current covered product categories for boilers include:

  • All gas-fired boilers that produce hot water as an output
  • Residential oil-fired boilers that produce hot water as an output
  • Large commercial oil-fired boilers that produce hot water as an output
  • Large commercial boilers whether gas-fired or oil-fired that produce steam as an output.

Boilers that are not in one of these covered product categories do not have a designated minimum efficiency level. While there  is not a designated efficiency level, all purchases of energy consuming equipment must take into account life cycle cost, not just first cost, when selecting the efficiency requirement (FAR Part 23, 42 USC §8259b(b)(2)).
 

How To Determine Cost Effectiveness

An efficient product is cost effective when the lifetime energy savings exceed the up-front cost premium (if any) compared to a less efficient option. Find more information about determining life cycle cost effectiveness on FEMP’s general purchasing requirements webpage.

Tables 2-4 below each provide an example comparison of the life cycle energy cost savings of a base model (less efficient than the minimum required efficiency), a model meeting the ENERGY STAR or FEMP-designated efficiency level, and a model with the highest available efficiency. The examples use one of three efficiency metrics (annual fuel utilization efficiency [AFUE], thermal efficiency, and combustion efficiency) that set efficiency requirements for boilers. Note that the assumptions for each example may be slightly different depending when the calculation was last updated.

Example 1: ENERGY STAR Residential Boilers Meeting Annual Fuel Utilization Efficiency Requirements

FEMP has calculated that an ENERGY STAR-qualified gas boiler meeting the required 0.90 annual fuel utilization efficiency (AFUE) saves money if it costs no more than $1,150 more than the less efficient model with an AFUE of 0.84. The best available model shown below is cost effective if it costs no more than $1,824 above the less efficient model (or $674 above the required model).

Table 2. Lifetime Energy Cost Savings for Efficient Residential Gas Boiler Models

PerformanceHigh Efficiency ModelRequired Efficiency ModelLower Efficiency Model
AFUEa0.970.900.84
Annual Energy Use (therms/yr)739790877
Annual Energy Cost$710$759$843
Lifetime Energy Cost$9,765$10,439$11,589
Lifetime Energy Cost Savings$1,824$1,150======

a Annual Fuel Utilization Efficiency (AFUE) is a measure of how efficiently a boiler converts the energy in its fuel to heat over a typical year.

Example 2: ENERGY STAR Small Commercial Boilers Meeting Thermal Efficiency Requirements

FEMP has calculated that a 500,000 Btu/hr ENERGY STAR-qualified boiler meeting the required 94% efficiency level saves money if it costs no more than $21,805 more than the less efficient model with a thermal efficiency of 80%. The best available model shown below is cost effective if it costs no more than $26,891 above the less efficient model (or $5,086 above the required model).

Table 3. Lifetime Energy Cost Savings for Efficient Small Commercial Boiler Models

PerformanceHigh Efficiency ModelRequired Efficiency ModelLower Efficiency Model
Thermal Efficiency (%)989480
Annual Energy Use (therms/yr)7,6537,9799,375
Annual Energy Cost$7,355$7,668$9,010
Lifetime Energy Cost$119,514$124,600$146,405
Lifetime Energy Cost Savings$26,891$21,805======

Example 3: FEMP-Designated Large Commercial Boilers Meeting Combustion Efficiency Requirements

FEMP has calculated that a 3,000,000 Btu/h gas-fired hot water commercial boiler meeting the required combustion efficiency level of 96.0% saves money if priced no more than $95,651 above the less efficient model with a combustion efficiency of 82.0%. The best available model shown below is cost effective if it costs no more than $107,085 above the less efficient model (or $11,434 above the required model).

Table 4. Lifetime Energy Cost Savings for Efficient Large Commercial Boiler Models

PerformanceHigh Efficiency ModelRequired Efficiency ModelLower Efficiency Model
Combustion Efficiency (%)98.0%96.0%82.0%
Annual Energy Use (therms/yr)35,14335,87542,000
Annual Energy Cost$33,773$34,476$40,363
Lifetime Energy Cost$548,809$560,242$655,893
Lifetime Energy Cost Savings$107,085$95,651======

Where To Buy Compliant Products

Buyers can make sure the product they purchase will be compliant by incorporating federal acquisition regulation language into contracts. Compliant products can also be found using federal supply sources and product codes. See FEMP’s general federal purchasing requirements webpage for more details on buying compliant energy-using products.

Boiler Product Codes

The Defense Logistics Agency Environmental Attribute Code (ENAC) identifies items with energy characteristics that meet standards set by an approved third party, such as FEMP and ENERGY STAR.  Purchasers can also use a United Nations Standard Products and Services Code (UNSPSC) to identify and buy products and to track purchases. In addition, the Unified Facilities Guide Specifications (UFGS) section 23 52 43.00 20 has information regarding low-pressure water heating boilers. These specifications are used in construction for the U.S. military services.

The UNSPSCs and DLA ENACs for boilers are listed in Table 5.

Table 5. Product Codes for Residential and Commercial Boilers

Boiler TypeSize (Input)DLA ENACUNSPSCs
Gas-FiredOil-FiredEithera
ResidentialLess than 300,000 Btu/hrLN40102004 and 40102005N/AN/A
Packaged Boiler / Small Commercial300,000 – 2,500,000 Btu/hrHF40102004 and 401020054010200740102001 and 40102002
Large Commercial2,500,000 – 10,000,000 Btu/hrHF40102004 and 401020054010200740102001 and 40102002

a Fire tube and water tube boilers can be either gas-fired or oil-fired.
 

Other Tips for Choosing and Using the Best Product Efficiently

Understand Factors Affecting Life Cycle Cost of Boilers

Before looking for specific boiler products, buyers and specifiers should consider the following factors that would affect how much a boiler costs over its lifetime.

  • Boiler Usage
    If you live in a cold climate with significant heating needs, it usually makes sense to invest in a highest-efficiency boiler system. In milder climates with lower annual heating energy usage and costs, the extra investment required to go to an incrementally higher efficiency may be hard to justify.

Look for High Efficiency Features

Specifiers and purchasers should consider specifying boilers with the following features, which help the boiler to operate more efficiently.

  • Condensing
    Hot water boilers include both condensing and non-condensing varieties. Condensing boilers are able to extract heat from water vapor in the combustion gases for use in producing hot water, and are typically more efficient than non-condensing models.

    There are some tradeoffs to consider along with the efficiency improvements. Condensing boilers must be made of corrosion resistant materials which can increase their manufacturing cost. Although more expensive, condensing boilers’ increased efficiency can significantly reduce energy costs to a point where savings exceed the cost premium reflected in the initial purchase price. Hybrid systems are useful in retrofit applications that integrate new condensing boilers and conventional boilers into an existing modular system.

Consider Other Boiler Features for Flexible Controls and Monitoring

Beyond efficiency, buyers and specifiers may want to consider the following features that make a boiler system easier to maintain and operate once installed.

Remote Monitoring Capability
Remote monitoring capability is useful to manage boiler operation and to detect any malfunctions in a timely manner.

Optimum Start Control
An optimum start control can allow users to fire up a boiler to heat up a building before it is occupied in the morning.

Network Connectivity
Many new energy consuming commercial boilers come equipped with Internet of Things (IoT) sensing components, and network connectivity. Connected boilers make it much easier to reduce loads on a signal from site management or the utility, enabling greater demand flexibility.  For more information on how to build cybersecure networks of building technologies, consult FEMP's Energy and Cybersecurity Integration resources and Cyber-Securing Facility Related Control Systems fact sheet.

Tips for Using Boilers Efficiently

Several diagnostic and maintenance procedures are important to maintain efficient boiler operation. These procedures should be integrated into maintenance plans or contracts to increase boiler efficiency and extend the useful life of the boiler.

For details on specific procedures, the Boiler Efficiency Institute provides maintenance and operation manuals for boilers and boiler control systems. To encourage quality operations and maintenance, building engineers can also refer to ASHRAE/ACCA Standard 180: Standard Practice for Inspection and Maintenance of Commercial Building HVAC Systems. In addition, the FEMP O&M Best Practices Guide, Release 3.0, Chapter 9 provides valuable information on operation and maintenance of boiler systems.