HVAC price increase 2023

Did you know that the cost of water heaters and air conditioning (HVAC) units will increase in 2023? Many homeowners and property managers may be surprised by the rising price of new water heaters and air conditioning units next year.

First, the nation is experiencing a wave of price increases for various products and services across many industries, due to the pandemic’s impact on the global supply and distribution chain. This includes the cost of materials used in the manufacturing of HVAC units.

The second reason revolves around an initiative by the U.S. Department of Energy (DOE) to reduce the overall energy consumption in the United States. On January 1, 2023, new regulations from the DOE will take effect, changing existing minimum efficiency standards for split-system HVACs and split-system heat pumps. Additionally, all HVAC manufacturers must comply with new testing procedures for measuring and developing efficiency ratings for HVAC units.

When the stricter regulations take effect, consumers’ wallets will certainly feel the impact. To put it plainly, customers should expect to pay higher prices for HVAC systems and water heaters in 2023.

Because central air and heating use a significant amount of energy, the DOE first started regulating SEER ratings in 1987. Since then, the DOE has analyzed HVAC energy consumption and efficiency across the United States by dividing the country into regions.

Energy consumption is measured in SEER, which stands for seasonal energy efficiency ratio and indicates the energy efficiency of an HVAC system. A higher SEER rating indicates a more efficient appliance. Older air conditioning units typically have lower SEER ratings.

In the Southeast region, which includes the state of Florida, the DOE’s new minimum efficiency regulations for 2023 will increase from 14.0 to 15.0 SEER. Heat pump minimum efficiency requirements, which adhere to a national standard, will increase from 14.0 to 15.0 SEER.

In addition, the new standards will require increased heating efficiency of air-source heat pumps as measured by the equipment’s heating seasonal performance factor (HSPF). The minimum HSPF will become 8.8 HSPF, as compared with the 8.2 HSPF required by the current standard that went into effect in 2015.

The law also states that any air conditioning unit that does not meet the above requirements cannot be installed on or after January 1, 2023. That means, when it’s time to replace an old HVAC, homeowners will be required to buy a unit that complies with the new standards. HVAC service companies will not be allowed to install or service an HVAC unit or water heater with a 14.0 SEER rating or lower in 2023. Only 15.0 SEER units or higher meet the new 2023 federal requirements for energy efficiency.

The U.S. Energy Information Administration projects that these changes will create a savings of $2.5 billion to $12.2 billion on energy bills during the first 30 years of the regulatory change.

Buy Now! Avoid Price Increases from 2023 HVAC Regulations

Do you have an air conditioning or water heater that needs to be replaced? Any units bought and installed before January 1, 2023 are not subject to the new standards. If you would prefer an appliance with a 14.0 SEER rating or lower, there’s still time to act!

Avoid the coming price increases of 2023 by calling Pro-Tec at 239.261.1000 or visiting ptpflorida.com to schedule an appointment today.

Homeowners wonder “Should I replace it now?”

With inflation rampant in 2022, you may be wondering how air conditioner prices could go up dramatically starting January 1, 2023.

The reason is new minimum efficiency standards will go into effect as required by DOE (Department of Energy).  The minimum manufacturers can make will be 1 SEER higher for air conditioning and heat pump systems.  The DOE divides the country into regions, and Kansas and Missouri are in the northern part, which has not had a required efficiency change since 2006.  In 2006, the minimum efficiency rating was raised from 10 SEER to 13 SEER.

Starting January 1, 2023, the SEER rating standards will jump up one SEER to 14 (air) and 15 (heat pump).  However, the DOE is also initiating a new testing procedure known as “SEER 2.”  This new test procedure is more stringent, so a 14.0 SEER under the old test procedure will be a 13.4 SEER 2.  Another way to say this is an “old” 14 SEER equals a “new” 13.4 SEER in 2023.

HVAC industry alerts are now warning of significant price increases for 2023.  There are four reasons for this increase:

  1. The cooling equipment components will perform higher to achieve a high-efficiency rating.  This is a good thing as these components generally have higher quality and will last longer.
  2. The physical size of the indoor cooling and outdoor air conditioner coil will increase to gain efficiency.  This equates to more copper, aluminum, and steel and hence more cost.
  3. With the physically larger units comes more labor in handling the equipment, and fewer units will fit in a rail car or tractor-trailer.  Both handling and shipping costs will be increased.
  4. Fans and the top that covers fans in air conditioners will be a different design to achieve a higher efficiency rating.  The cost of the design is more with the larger units.

With this change, homeowners should be thinking, “should I replace before January 1, 2023?”  The answer is a resounding “Yes” if you have one of the following:

  1. An air conditioner that operates with an ozone-depleting refrigerant known as “R22.”  Whether the system is working or not – replace it since this refrigerant is no longer being made.
  2. If your cooling system operates with an ozone-friendly refrigerant (known as R410A or Puron) and is over 12 years old, whether the system is working or not, replace it.
  3. If your cooling system is operating with an ozone-friendly refrigerant (known as R410A or Puron) and is under 12 years old, but you are facing repair costs over $500, replace it.

What is the new refrigerant for 2023?

Beginning next year, new cooling systems will contain a refrigerant called R-454b with a lower global warming potential. This refrigerant is more environment-friendly than its predecessors but also mildly flammable. You can rest assured our ACS Air Conditioning Services technicians know how to handle it safely.

What is the future of HVAC?

HVAC systems of the future will use technologies such as more geothermal heat pumps, solar power, smart thermostats, and even ice-powered air-conditioning to reduce their energy use and overall environmental impact.

Is 410A Freon going away?

R-410A is scheduled for elimination from all new systems in 2023. Many HVACR contractors are not prepared for the change, and there are many questions. Here are some answers. Why January 2023?

What is the average life of a central air conditioning system?

While every unit is different, and every homeowner has a different understanding of when their central air conditioner is broken beyond repair, it's fair to say that, with proper maintenance and care, you can expect a good 15 to 20 years of cooling from a new high efficiency air conditioning system.