New efficiency standards may result in lower bills, but systems may have a higher up-front cost Homeowners may find themselves feeling hot under the collar over new cold, hard HVAC facts.
That’s because increasing energy efficiency standards that go into effect in 2015 likely will result in a higher price tag for new air conditioning equipment and hot water heaters.
As of the first of this year, the minimum standard Seasonal Energy Efficiency Ratio, or SEER rating for heating and cooling systems has increased in many areas of the country. The rating, which measures the energy efficiency of an air conditioning system over the course of an entire cooling season, has increased from 13 to 14 in many areas throughout the U.S. (visit tinyurl.com/SEER2015 for a map and info). Consequently, new installed A/C systems and related cooling equipment, including package air conditioners and split-system or package heat pumps, will need to be SEER 14 or higher going forward; for split system air conditioners, SEER 13 units can continue to be installed in northern states, but southeast and southwest states will require SEER 14 models.
Higher-rated systems, as one might expect, come with some higher costs.
Installing the higher-rated SEER 14 system could cost at least 15 percent more than a comparable SEER 13 system, according to Zach Turner, vice president of Modern Mechanical, LLC, in Ashburn, Virginia, says installing a new SEER 14 unit could cost at least 15 percent higher than a comparable SEER 13 system.
“What adds to the increased cost, however, is that, in the past there were options to simply replace the outdoor unit or just the indoor air handler. But to achieve SEER 14, you must replace both the outside and indoor units,” says Turner.
Additionally, beginning April 16, the U.S. Department of Energy will require new hot water heaters to conform to higher energy factor ratings to conserve more natural resources and generate energy cost savings for homeowners. As a result, when you need to add or replace a hot water heater, the installation costs could be significantly higher. That’s because new units will have taller and wider dimensions that could make it difficult to fit within your utility closet or other space where the water heater is normally stored.
“If there is no room for the newer unit, the consumer will be forced to either relocate equipment and install new venting and piping or downgrade to a smaller unit that fits within the designated area,” says Andy Rodenhiser, owner of Rodenhiser Plumbing, Heating and Air Conditioning in Holliston, Mass.
Depending on the existing heater size and space constraints, a new water heater could cost up to four times as much to install, says Turner.
“For example, if you currently have a standard vent 75-gallon natural gas water heater, which is being discontinued, it would normally install for around $1,500. The replacement could require a power vent water heater that needs a different flue, costing you upwards of $3,500 installed,” Turner adds.
These increased costs can be recouped over time, however, considering that higher efficiency A/C systems and water heaters can reduce your monthly utilities and likely perform better, leading to a longer lifespan and potentially fewer repairs.
“The key is to replace your systems before they fail,” says David J. Crawford of Service America Enterprise, an appliance repair service in Ft. Lauderdale, Fla. “If your air conditioning system is 12 years old or older, it may be time for a replacement. [And it] is most likely a lower SEER system that is using more electricity than is necessary to cool the home.”
The good news for homeowners in southwest and southeast states is that they have a grace period — expiring July 1, 2016 — in which they can still have SEER 13 A/C systems installed, “so if budget is your main concern, replace your system now with a SEER 13 one, while they’re still available,” says Turner.
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