When you first start researching new air conditioning systems for your home, one term that you’re going to come across frequently is SEER. This is an important factor that helps to designate the operating efficiency of a particular unit. Here, we’ll discuss what this rating is and how it will affect your next purchasing decision.
Understanding SEER
SEER stands for seasonal energy efficiency ratio. This ratio takes the unit’s total cooling output for an entire season and divides it by the total amount of energy it consumes. The higher the rating, the more energy-efficient the air conditioner is. As a homeowner, it’s important to understand the efficiency rating of a particular air conditioner so you can compare it to others on the market to make your ultimate AC installation decision.
Transitioning to SEER2 Ratings
While SEER ratings were a common designation for air conditioners leading up to 2023, the US Department of Energy (DOE) determined that this rating system isn’t extremely accurate for homeowners. SEER ratings are given based on testing done in facilities to showcase the performance of the air conditioner. The problem with this testing is it’s done under optimal conditions.
Many times homeowners will purchase a particular system thinking that it will have a SEER operating efficiency of 18, while it only produces an efficiency of around 16 once it’s installed in their homes. These real-world conditions aren’t accurately portrayed with traditional SEER ratings. This is where the introduction of SEER2 ratings came into play as of January 1, 2023.
The main difference between SEER and SEER2 ratings lies in their testing procedures. SEER2 ratings are based on testing in real-world applications. They provide a more realistic operating efficiency for homeowners than the traditional SEER rating system. You’ll find that units with a SEER rating of say 14, may only have a SEER2 rating of 13.4. This is because SEER2 represents a more realistic operating efficiency than the traditional SEER rating.
Minimum SEER2 Standards
The DOE has set minimum SEER2 standards that all air conditioning manufacturers must meet to sell their cooling products. The standards are divided into three different areas, including North, South, and Southwest. These designate the specific regions of the country and require hotter regions to have more efficient air conditioners than colder regions.
This is to better reduce energy consumption in those hotter regions since they’re going to run their air conditioners for longer than in the cooler regions. As of January 1, 2023, the standard for the North is 13.4. The standard for both the South and Southwest is 14.3. All air conditioner manufacturers and installers may no longer offer home air conditioning systems that don’t meet these minimum standards.
Do You Have to Upgrade?
One of the biggest concerns that homeowners have after getting this information about newer SEER2 ratings is if they’re required to upgrade their air conditioning system. If your air conditioner was installed prior to January 1, 2023, you aren’t required to upgrade your system. You can continue to use it until it completely fails. However, realize that systems with a higher rating will provide you with more long-term energy savings than your existing AC system.
Tax Credit and Local Rebates
One thing to consider when purchasing a new air conditioning system for your home is what units will make you eligible to receive a federal tax credit as well as any local rebates available in your area. Under the Inflation Reduction Act of 2022, homeowners who purchase units that qualify can enjoy a tax credit of up to $600. This can be great for recouping some of the upfront costs associated with your new air conditioner.
The federal government requires split-system air conditioners to have a SEER2 rating of 17 or greater. Heat pumps, ductless mini-splits, and packaged units must have a SEER2 rating of 16 or greater. If you opt to purchase a heat pump or ductless mini-split instead of a traditional central air conditioner, you may be eligible to receive a higher tax credit. However, your new system must also meet HSPF (heating seasonal performance factor) efficiency requirements related to its heating capabilities.
Apart from the federal tax credit, there are also rebates you can take advantage of at the local level that can also help you recoup some of the upfront cost of your new AC unit. Many local utility companies will set standards on their website for minimum SEER2 ratings for any new air conditioners.
Most will provide you with a credit on your utility bill if you purchase a unit that’s eligible for the incentive. Even some local governments and municipalities will provide you with other rebates and incentives. It can be helpful to check with local programs in your area to see what SEER2 standards are for the available rebate programs.
System Efficiency Categories
Residential air conditioning systems fall into three different efficiency categories, which are standard, efficient, and ultra-efficient. Ultra-efficient units will cost the most upfront but will provide you with the most long-term energy savings over their lifespan. Standard units are the most affordable for homeowners who are more budget-conscious as compared to reducing long-term energy bills.
In general, standard efficiency air conditioners have a SEER2 rating between 13.4 and 14.3. Efficient models range from 15 to 17 SEER2, while ultra-efficient models range from 18 SEER2 and up. Ductless mini-splits have a standard SEER2 of 16, an efficient SEER2 of 18 to 22, and an ultra-efficient SEER2 of 23 to 30 and above. If you’re looking for a good mix of upfront affordability and long-term energy savings, choosing a model in the efficient range is your best bet.
Benefits of Upgrading to a Higher SEER2 System
One of the most obvious benefits of investing in an air conditioner with a SEER2 rating is that it will lower your energy bills. To put this into perspective, upgrading from a unit with 13.4 SEER2 to one with 17 SEER2 can save you around 30% on your annual cooling costs. As an added benefit, many of these units with a higher rating use more eco-friendly refrigerants like R-32. These are much better for the environment than traditional R-410A refrigerants.
Purchasing a unit with a high rating will lead to a bigger increase in your home’s resale value. Home buyers are willing to pay more for homes that have systems that are energy efficient. You get to enjoy more comfort and better humidity control. A lot of these higher-rated units also have quieter operation and can provide a more stable indoor temperature. Additionally, you can enjoy higher tax incentives and more advanced technology, like diagnostic alerts, that most standard units don’t come with.
Reliable AC Installation Service
Anderson Heating, Cooling, Plumbing & Electric provides exceptional AC installation services for the Cleveland, OH community. Our technicians can also gladly assist with all your AC repair, maintenance, and replacement needs. Give our office a call today to schedule your next service consultation with one of our knowledgeable AC technicians.
