Like many other consumer goods in this country, heating and cooling equipment continues to get more expensive, seemingly by the day. Our industry has experienced price increases ranging from 20-30% in the last 18 months alone. Increased prices of raw materials such as steel, copper, and even wood, continue to affect manufacturing costs and the end cost to the consumer. Higher labor production and delivery costs further compound the problem.
New Efficiency Requirements will Drive Prices Even Higher.
2022 is the last year for the current efficiency ratings for air conditioners and heat pumps in the state of Indiana. Beginning January 1, 2023, the new efficiency minimum for air conditioners will move from 13 to 14 SEER. SEER (Seasonal Energy Efficiency Ratio) is the cooling efficiency rating for air conditioners and heat pumps. The higher the SEER rating, the less electricity a unit uses to produce an equal amount of cooling. Retail prices for 14 SEER air conditioners are $400-$700 higher than our current 13 SEER models.
Similarly, heat pump minimum cooling efficiency will move from 14 SEER to 15 SEER. The heating efficiency, HSPF (Heating Seasonal Performance Factor), will also move from the current minimum efficiency of 8.2 HSPF to the new minimum of 8.8 HSPF. Retail prices for 15 SEER heat pumps are $1,400-$2,000 higher than our current 14 SEER models.
Annual electricity savings to the consumer for the increase of one SEER point ranges from $12-$30, depending upon the capacity of the unit. As an example: If you pay $700 more for a 14 SEER air conditioner in 2023 at the return of $30/year in electrical savings, it will take 23 years to recoup your additional expenditure versus the purchase price of the 13 SEER unit in 2022. This certainly does not seem like a good return on investment.
NOW is the Time to Replace HVAC Equipment!
Air conditioners and heat pumps are going to continue to get more expensive. Price will be impacted by higher production costs and by new minimum efficiency changes. Most air conditioners have a life expectancy of 15-20 years, and most heat pumps have a life expectancy of 12-15 years. If your equipment is aging, or if you know your system has a refrigerant leak, now is most likely the best time to consider equipment replacement.
Take Advantage of Rebates & Other Incentives.
Duke and AES (formerly IPL) do have rebates available on qualifying cooling equipment purchases. Appel Heating & Air Conditioning has also extended our Spring Pre-Season Sale for $300 off any heat pump or air conditioner through
May 31, 2022.
Get Ready for Flammable Refrigerants.
Another compelling reason to consider replacing your older model air conditioner or heat pump is that the EPA will be forcing the HVAC industry to switch to new, flammable refrigerants, no later than January 1, 2025. The last time the industry was forced to switch refrigerants back in 2010, from Freon (R-22) to Puron (R-410A), equipment pricing and equipment problems escalated.
We, as an industry, have less experience with these new refrigerants. Manufacturers have to overcome the challenges of engineering equipment and parts to withstand higher pressures and to operate with the different chemical compositions found in the new refrigerants. Installation and service technicians must be trained to work with the new refrigerants, equipment, and parts. There is always a learning curve when an industry makes a significant change such as this. We will continue to post more information about the new refrigerants and how this will impact your life and your wallet.