The cost of heating and cooling is likely about to go up, with new legislation leading to a chain reaction of price hikes. Are you ready?
What is going on?
First things first, you’re probably wondering, what is going on?
In short, new efficiency standards are coming, which will go into effect on January 1, 2023. This news puts pressure on manufacturers, who must scramble to meet the new requirements.
Not only are the standards themselves changing, but how systems are rated is also changing. As you may know, most air conditioners are currently rated according to their “SEER,” which stands for Seasonal Energy Efficiency Ratio.
However, as of 2023, a new rating system, known as “SEER2” will be implemented. This will likely lead to price increases across the board as manufacturers adjust to the new standards. SEER2 is more stringent, increasing the qualifications a system needs to qualify as, for example, the minimum required 14 SEER.
What does this mean for you?
In short, if you’re in the market for a new air conditioner, you may want to buy it sooner rather than later. Prices are likely to go up across the board as manufacturers adjust to the new requirements and need to stop the production of systems that don’t meet these requirements while also designing equipment that does.
Unfortunately, the cost of heating and cooling your home is about to go up if you don’t invest in a new system now and need it in the coming years. Industry leaders predict that prices could increase by as much as 20% across the board.
Of course, this is all just speculation at this point. And on the bright side, the new SEER2 efficiency standards will improve the energy efficiency of American homes and save money in the long run (on utility bills and reduce the load on the environment). But in the short run, they could be costly.
Other new legislation
The Inflation Reduction Act, which was passed in August, is another bill that’s going to have an impact on the cost of heating and cooling your home.
However, this will be a positive impact on many! If you have energy-saving heating and cooling equipment or ENERGY-STAR-qualified doors, windows, and insulation installed, you may be eligible for a tax credit of up to $1,200. And in fact, those in lower-income to average households can save up to $8,000 on a heat pump installation!
This is good news for those looking for home energy efficiency improvements. And, it’s a great way to offset the potential price hikes we may see in the coming years.
If you have questions about SEER2, the Inflation Reduction Act, tax credits, or anything else in this complicated yet important turn of events, our team at Air Repair Pros is here to help! Give us a call at 469-333-2474 today, and we’ll help you figure it out! We’re always happy to chat and answer any questions you may have.