Impacts of Heating & Cooling Changes in 2023

11/7/2022

New DOE Regulations May Affect Your Future Home Heating & Cooling System

The Department of Energy recently released a new set of standards for home comfort equipment, which will reduce all previously rated 14 SEER air conditioners down to a 13.4 SEER rating effective January 1, 2023 and begin a phase-out of 14 SEER equipment.

Two significant changes will affect heat pumps and central air conditioners beginning in 2023. Service Legends is here to help you navigate those changes in Iowa.

What is SEER?

The seasonal energy efficiency ratio (SEER) describes cooling system efficiency. The higher the number, the more efficient the unit is. The number represents the unit’s output during the cooling season divided by the amount of electricity the unit used over that same period.

What is Changing?

The U.S. Department of Energy (DOE) will raise the minimum efficiency standards for air-source heat pumps and central air conditioners starting next year. Systems sold in the U.S. beginning Jan. 1, 2023, must meet those minimum standards.

Currently, the efficiency baseline is 13 SEER for heat pumps and air conditioners installed in homes in the northern half of the U.S. and 14 SEER for equipment in the southern half. Next year the minimum standard goes to 14 SEER for northern states and 15 SEER for southern states.

The minimum rating for heating efficiency also will increase for air-source heat pumps. The heating seasonal performance factor (HSPF), which describes heat pump efficiency, will increase from 8.2 to 8.8.

The federal government will not require you to replace your older heat pump or air conditioner when the minimum standards change next year. However, if you decide to install new equipment in 2023, you will not be able to buy a 13 SEER model. Your new equipment must be rated 14 SEER at minimum. Your new heat pump also must carry an HSPF rating of 8.8.

How does this affect you?

With the new regulations come newer systems, which are expected to cost 20-50% more. We understand how it feels to be surprised and caught off guard by such a significant increase and want to be transparent and open about these changes. If you’re considering replacing your furnace and air conditioner, we would suggest taking advantage of current prices and possible larger rebates now.

How You Can Save Money

According to the U.S. Energy Information Administration (EIA), the new standards will result in huge savings on utility costs for consumers. The agency estimates that households with air conditioners or heat pumps collectively will save $2.5 billion to $12.2 billion over the next 30 years on energy bills.

New equipment offers more energy-saving features, such as two-stage and variable-speed compressors and blower motors. Single-stage compressors, for example, work at capacity all the time. Two-stage and variable-speed compressors operate at lower speeds and use less energy most of the time. They also can run at capacity when the temperature rises.

Our Service Legends experts can help you determine which features fit your lifestyle and comfort needs.

What are the benefits of replacing now?

With older systems, it’s usually a matter of time before they fail. Upgrading your system now helps you lock in a lower price before supply runs out and helps you save additional money on utility costs because you’ll have a more energy-efficient system. And best of all, you’ll have peace of mind knowing your system won’t give out on you when you need it most.

Now is the time for homeowners to also do an energy analysis and assess the condition of their systems as well. The updated SEER regulations in addition to the new Inflation Reduction Act (IRA) creates a huge opportunity for homeowners with up to $14,000 in rebates and tax credits. Generous tax credits and cash rebates authorized under the legislation have the opportunity to help homeowners save big on their energy costs.

Free In-Home Estimate On A New System

We’re here to help answer all of your questions to make the best decision for you! Give us a call or book an appointment online for a free in-home estimate on a new home comfort system. Our qualified technicians have your back whether you need equipment maintenance, repairs, replacement, or installation. We offer solutions tailored to your unique comfort and budget needs.

515-657-6634 Request Appointment Online

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