You are in Phoenix. We also have a Tucson site.

You are in Phoenix. We also have a Tucson site.

You are in Phoenix. We also have a Tucson site.

Are Air Conditioners and Furnaces About to Explode in Cost?


October 1, 2022

As you may have already heard, two new laws affecting home heating and cooling are coming soon …

The Inflation Reduction Act and SEER2.

THE GOOD: Inflation Reduction Act

As the name suggests, this Act will help to reduce inflation by making it easier for households to afford new, more efficient equipment. It will go into effect on Jan 1, 2023.

The Inflation Reduction Act will help the environment by introducing more efficient equipment to households, which will in turn lower energy costs. In fact, you could save up to a whopping $8,000 on a new heat pump depending on your income:

According to Consumer Reports, “If your household income is less than 80% of your state’s median household income, you are eligible for 100% of the rebates available… If your household income is 80% to 150% of your state’s median income, you are eligible for 50% of the rebates available… If your household income is more than 150% of your state’s median income, you are not eligible for these rebates.”

Check how your income/your household’s income compares here.

Other than saving up to $8,000 on the installation of a heat pump, why might you choose to switch to this more efficient form of heating? Well, because heat pumps save you money – especially here in Phoenix, where we have relatively mild winters. In fact, according to the U.S. Department of Energy, a heat pump can save you up to 50% on your heating costs when compared to a furnace.

If you’re looking to save money and help the environment, a heat pump is a great option for you. With the Inflation Reduction Act, there’s never been a better time to switch.

THE BAD: SEER2

SEER2 is a new minimum efficiency requirement for air conditioners and heat pumps that goes into effect this year. It will also go into effect on Jan 1, 2023. The Seasonal Energy Efficiency Ratio (SEER) of a new AC or heat pump must now be 14 or higher nationwide, increased from the current standard of 13.

Why does this matter? Because many of the air conditioners currently on the market and being sold will no longer meet the new SEER2 standards. This means that the number of qualifying ACs able to be sold goes down, and so the price of a new AC unit goes up. Supply and demand, that’s just how it is!

THE UGLY: Waiting to buy a new A/C

So if you wait after Jan 1, 2023, to buy a new air conditioner, you’re going to be paying more for it. A lot more. In fact, because we’re in Arizona, the requirements are even stricter than the national requirements – the SEER needs to be at least 14.3, instead of just 14.

Again, there is still good news!

The Inflation Reduction Act will help to offset the increased cost of a new AC or heat pump, unit by offering its rebates. If you do need to buy a new cooling system this year, you can get some big money back from the government. It’s just that you should probably be doing it this year, and not wait, because of the effects of SEER2 coming into effect on Jan 1st!

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