With new regulations going into effect on January 1, 2023, you are certain to see the price of replacing your air conditioner go up. What will these laws do to heating and cooling costs?
Read on to find out!
What is SEER2?
SEER2 is one of the new pieces of legislation being introduced at the start of 2023. SEER, or Seasonal Energy Efficiency Ratio, is a way of measuring how much energy an air conditioner uses to cool your home all season long. More specifically, SEER refers to the amount of heat an air conditioner can remove from your home, compared to the amount of power it consumes over the course of an entire cooling season.
To meet the new SEER2 standards, all newly manufactured air conditioners will have to have a rating of at least 14 SEER, or else they will be illegal to sell or manufacture. This is a significant increase from the current minimum SEER rating of 13, which has been in place since 2006.
The new SEER2 standards will have a few different effects on consumers. Firstly, the increased efficiency requirements will likely lead to an increase in the price of air conditioners, because of the reduced supply that manufacturers are allowed to sell. The new standards will reduce the amount of available inventory for most manufacturers and retailers, as many existing models will no longer meet the SEER2 requirements.
What is the Inflation Reduction Act?
So, what else is changing in 2023? In addition to the new SEER2 standards, there are also a few other legislative changes, namely, the Inflation Reduction Act. And don’t worry because this is a good thing!
While the largest incentives in the Inflation Reduction Act apply to the installation of new heat pumps, there is a significant income qualifier that must be met to be eligible; these rebates are available to families that make less than 150% of the average state income. The rebate helps to offset the increased cost of upgrading to a more efficient heat pump system and could mean incentives up to $8000. The IRA’s focus on heat pump technology is driven as part of its eco-efficiency measures to help save the environment.
Tax credits
So, it makes sense that the Inflation Reduction Act is pushing for heat pumps to help address environmental concerns. But what does this have to do with the price of your air conditioner or furnace? The Act also brings back incentives for homeowners to upgrade their inefficient air conditioning and heating systems. That’s right, tax credits for buying qualifying air conditioners, furnaces, and water heaters are back through 2032! Homeowners can save up to $500 in tax credits for qualifying high-efficiency equipment: SEER 16+ air conditioners, furnaces rated AFUE 95+, and 90%+ efficiency water heaters.
And, again, because of the Inflation Reduction Act, these awesome tax credits are valid through 2032.
Now is the time for a new heating & cooling system
So, what does all this mean for you and your family? Well, if you’re in the market for a new heating and cooling system, now is the time to buy! Not only are there great tax credits available now, but the looming SEER2 standards will no doubt increase prices in 2023.
Give Weather Master a call anytime at (919) 853-7910, and we’ll be happy to help you in your Raleigh home and give you even more information.