Should You Upgrade to a High-Efficiency AC?

The industry measures cooling efficiency with the seasonal energy efficiency ratio (SEER2). The Department of Energy (DOE) sets regional SEER2 minimums for manufacturers. Brands also make ACs that outperform those baselines, and those are the high-efficiency models. Let’s explore whether it’s best to choose a standard model or a high-efficiency alternative.

Environmental Impact

Air conditioning is the number one contributor to the average U.S. household’s annual energy consumption. Choosing a high-efficiency AC will lower your household’s carbon footprint, which is better for the environment. Consider that selecting a 25 SEER2 system over a typical 13 SEER2 AC can reduce energy use by 60% or more. If cost isn’t a factor, you absolutely should choose a high-efficiency AC. That said, budget is a factor for most homeowners.

Initial Cost

High-efficiency models cost more because they have more sophisticated components. As an example, a typical AC has a blower that runs at a constant speed. A high-efficiency model, on the other hand, often has a variable-speed blower that ramps up and down. The price difference depends on many factors, including the brand and features. Still, you should expect to pay around 50% more as a starting point.

Energy Incentives

The average U.S. homeowner can’t afford to pay 50% more for an AC installation. To help make these systems more affordable to many, there are energy incentives.

ENERGY STAR

While the DOE sets SEER minimums, the Environmental Protection Agency sets loftier goals. AC systems that reach these targets in independent lab testing get the ENERGY STAR label. That label gives consumers peace of mind and is the key criterion for many incentives.

Tax Credits

To incentivize the adoption of high-efficiency appliances, the federal government established residential tax credits. These programs date back to the 1970s. The current iteration, which runs through 2033 and the government may extend, is the Energy Efficient Home Improvement Credit. This is a nonrefundable tax credit worth 30% of the total AC cost up to $600.

Rebates

There are federal rebates available, especially for high-efficiency heat pumps. You generally claim them through your state, and only instead of a federal tax credit. There are also rebates available from utilities, manufacturers, retailers, and other private groups. You can claim as many of these rebates as you’re eligible for. Most energy rebates are post-purchase incentives. Yet, point-of-sale rebates do exist and can lower your out-of-pocket expenses.

Operating Costs

A selling point of high-efficiency ACs from a financial perspective is that they cost less to run. How much less depends on several factors.

SEER2

The higher the SEER2 rating, the cheaper an AC will be to run. When comparing ACs, you know that the higher SEER2 model will cost more to operate month to month. Each SEER2 point should lower your electric bill by at least 5% and as much as 10%.

What About SEER?

SEER2 is a newer version of SEER that the DOE began using on January 1, 2023. It accounts for static pressure and is thus a better measure of efficiency for high-efficiency central ACs.

Kilowatts Per Hour

If you’d like a more precise estimate, look for the EnergyGuide label, which is a large, yellow sticker. The Federal Trade Commission requires it for ACs and other appliances. It indicates all the energy usage details you need, including SEER2, but also kilowatt-hours (kWh). This is an estimate of how much electricity an AC will use each hour. You can multiply the kWh by the electricity rate in your area to achieve a real-world dollar figure.

Enhanced Comfort and Performance

High-efficiency ACs generally provide better comfort. They’re able to remove more moisture from the air and thus lower the relative humidity. High-efficiency models also achieve more even cooling by adjusting static pressure. This gives you the option of zone control as an add-on. It can reduce your annual usage by an additional 30%. High-efficiency ACs tend to be quieter, and many can have predictive maintenance features to help avoid repairs.

Finding the Sweet Spot

For the average consumer, it comes down to whether the long-term savings outweigh the added initial cost. The best approach is to schedule a professional installer for an in-home consultation. An installer can help you weigh all the factors and decide.

High-Efficiency AC Installations in Greater San Antonio

MD Air Conditioning & Heating offers a wide selection of high-efficiency ACs for homeowners throughout San Antonio and the surrounding areas. We employ NATE-certified technicians who complete our AC installations. Our heating and AC service company is a proud Trane Comfort Specialist, but we install all AC brands. We also back our installations with a 100% satisfaction guarantee.

Call today or contact us online to schedule an in-home consultation at no charge and without obligation.