Air conditioning units have a lifespan of about 10 to 15 years, meaning that if you have an old system, you may start contemplating an air conditioning replacement soon. Some of the most important things you may have to worry about during an AC replacement are the costs and logistics of replacing your unit. These worries are reasonable, but efficiency is another factor to consider when shopping around for a new system.
What Is a SEER Rating?
Seasonal Energy Efficiency Ratio (SEER) is assigned to both heat pump and air conditioning units on the market. It measures the ability of a system to use a certain amount of energy to cool air. The higher the SEER rating, the more efficiently a unit can operate. It is important because it can save you money on energy costs.
Units with a higher SEER rating are more energy-efficient, enabling you to reduce your carbon footprint. Besides a higher SEER, newer AC models use safer, more environmentally friendly refrigerants. Furthermore, a high SEER air conditioner can become a selling point if you decide to move.
What Is Considered a Good SEER Rating?
There are different air conditioning systems, and their efficiencies vary. Thus, there is not one SEER rating that is best for everyone. To calculate SEER ratings, manufacturers divide the system’s cooling output during a typical cooling season by the overall energy consumption.
Beginning in January 2023, all newly manufactured central AC and heat pump systems sold across the United States must meet new energy efficiency standards. This upgraded standard is referred to as SEER2. New HVAC systems that were manufactured in 2022 may only meet the SEER standards and not SEER2.
In 2015, separate standards were set for central ACs sold in the northern and southern parts of the United States. These new standards have continually set unique cooling efficiency levels for ACs in the southern parts. These regulations also required an increase in the heating efficiency of heat pumps.
The updated standards that will be effective in 2023 require that ACs have a minimum SEER rating of 14 for residential units in the northern part of the United States. For the southern part, these regulations require a minimum rating of 15 SEER since cooling loads take up a higher energy usage in homes. Keep in mind that your cooling requirements and the climate around your home can affect the SEER rating that is ideal for you. However, an average homeowner should have real energy savings if they upgrade to a unit with a SEER rating of 14 to 16. To put it into perspective, a system with a 20 SEER rating will be about two times more efficient than a system with a 10 SEER rating. Higher SEER creates a better functioning unit while simultaneously saving you money. Furthermore, there are more advanced HVAC units with SEER ratings of above 20.
The U.S. Energy Information Administration (EIA) estimates that about 64% of all occupied homes in the U.S. use a central AC unit, and about 11% of all homes use heat pumps for cooling and heating. When detailing the new regulations, the U.S. Department of Energy (DOE) calculated that all homes using central ACs and heat pumps would save a combined $2.5 billion to $12.2 billion on energy costs during the 30-year period after the standards have been implemented.
Is a Higher SEER Rating Worth Paying For?
A higher SEER rating means a higher comfort level in your home and lower monthly energy costs. In many cases, it also comes with a larger initial price tag. One of the major advantages of installing a unit with a higher SEER is lowering your utility bill following the installation of the new unit. Ultimately, these savings will be dependent on the difference in SEER between your previous unit and your new unit.
When checking efficiency versus purchase price, there are online calculators that can take your utility pricing, your old SEER rating and your new SEER rating to provide a savings amount on your utility bills for different kinds of units. In some cases, a professional installer can also provide these cost estimates.
To do the math on what it will cost to buy different HVAC models, consider current costs versus new cost projections. The cost of your new power bill can be added to the monthly cost of financing for a new monthly cost. Compare this new cost to the old/current cost of your utility bills. Total the cost of repairs or the estimate on upcoming repairs that you experience within a year with your current unit and divide this by 12. You can add this monthly cost to your current utility bill. This gives you a direct idea of what your new cost versus your old cost will be. Also, remember that your financing cost will disappear when you have paid off the balance.
Keep in mind that purchasing energy-friendly, high SEER purchases can also come with additional savings. Many power companies offer cash-back rebates when you purchase an efficient HVAC unit. In some cases, your installer may be able to work directly with the power company and provide a discount to you upfront while they collect the rebate later. The other benefit that is available when purchasing a new, energy-efficient HVAC system is a 30% federal tax credit on purchase and installation costs for units with a SEER2 rating of 16 and above. This credit is available for purchases that occur between 2023 and 2032. Purchases after this date can still be used to gain a tax credit, but the amount declines by a few percent each year. Other limits also exist; work with your local HVAC and/or tax professional to better understand the exact savings for you.
High SEER Units and Air Quality
An efficient AC can help to remove moisture from the air and create a cozy environment in your home. High humidity in your residence may have some devastating effects. If the humidity levels are above 60%, your home is able to support allergens like mold, fungi, bacteria, and dust mites. A home with high humidity can also have unbearable temperatures. This is because humid air impedes the ability of your body to regulate internal temperatures since sweat cannot evaporate. Higher SEER systems may come with features such as variable-speed compressors, which can allow the unit to stay on for a long time instead of cycling on and off.
Call the Experts
When you need to replace your existing air conditioning unit or buy a new one for your home, you will likely require professional help along the way. If you are dealing with an older and non-efficient HVAC system in Dallas or the surrounding areas, give Precision Heating & Air a call today. We are also experts in all other HVAC services, including repairs and maintenance. You can also call us anytime for emergency repairs. We offer air purification solutions to customers throughout our service area. Contact us for installation, maintenance, and repair work for ductwork, air purifiers, air filters, thermostats, humidifiers, and ventilators.
