Change Is in the Air

Story by: Karen J. Bannan

Discover how new laws for the cooling industry will have an effect on your purchasing decisions and your energy bills.

Ron and Clee Allen's home has two heating and cooling units. This winter, they replaced both of them. Their purchase came about after the upstairs unit broke down. It was about 10 years old. Since they were replacing the first one, they decided to replace the second downstairs unit, too, as it was 30 years old and wasn't efficient. The couple had natural gas bills that they categorized as "high."

The couple called on their local Aire Serv provider, hoping to get some input and advice on their purchase.

A few years ago, their provider would have offered them a wider, yet less-energy efficient, range of choices. Consumers, up until this past January, could buy units that started at 10 SEER—Seasonal Energy Efficiency Ratio, a measure of a cooling device's energy efficiency—and went up to 18 SEER. A new law that went into effect on January 23 changed that.

"As of this January, manufacturers are no longer able to manufacturer standard (10, 11, and 12 SEER) efficiency units," explains Tim Funke, president of Aire Serv Heartland and Poplar Bluff, Missouri. "As a percentage, that's 85 percent of what was being sold in the past. Only 15 percent of sales met the government's new SEER requirements."

Who Needs Leftovers?
The standards apply only to new systems, so consumers who already have systems installed won't be forced to upgrade. However, if they do have a problem that needs fixing on an existing lower SEER system, they might be able to fix it, but they will not be able to replace the outside unit without replacing the indoor coil.

And that's not to say that consumers still won't be able to buy cooling devices that have lower SEER ratings. The new law only makes it illegal to manufacture or import such units. Retailers, home builders, and manufacturers are allowed to deplete their current stock.

"Stock will probably be depleted this year," says Harry Misuriello, director of Buildings and Utility Programs at the Washington, D.C.-based nonprofit organization the Alliance to Save Energy. "There hasn't been a stockpiling of old units." The exception: home contractors and builders looking to keep costs down on new construction or remodeling, according to Misuriello.

Indeed, higher SEER ratings come with higher price tags. Last year, buying a 13 SEER instead of a 10 SEER could increase the cost of a new air conditioning system by up to 30 percent, said Funke of Aire Serv. Going forward, that number will dip considerably, but it's worth it since higher SEER ratings mean lower utility bills. Misuriello agrees.

"There will be some incremental cost, but consumers should look at the new technology as something that will save them in utility bills," says Misuriello. "Moving from 10 SEER to 13 SEER gives you a 30 percent improvement in A/C efficiency," he explains. "Some consumers may also be eligible for tax incentives under the energy bill passed last August."

It also does great things for our environment by lowering overall energy use. The Department of Energy says the U.S. will save enough energy over 25 years to power 26 million households in a single year. Even more impressive: Consumers over the same period of time will save $1 billion.

Gas Half Full
There's also another aspect to consider when purchasing a new unit: What type of refrigerant it uses. By 2010, the entire air conditioning industry will be required to phase out R22 refrigerant. A similar ban went into effect for car air conditioning units starting with a tax on the gas in the late 1980s, which made car air conditioning servicing difficult and expensive. Car manufacturers phased it out completely by the late 1990s.

While there's no proof that the same will happen in the home heating and cooling market, experts say it's worth looking for and purchasing units that use 410A refrigerant, also marketed as Puron.

"There are always naysayers, but this change out is a good thing for consumers and the environment," says Misuriello.

Funke of Aire Serv says he and his staff have been suggesting systems that use 410A for a while.

"All the manufacturers have an assortment of products out there that use both R22 and 410A, but those that use 410A are better quality units because they use different kinds of internal components," he says. "In today's market, 410A units might cost more, but we're in a transition phase, so with all things being equal, it's a better choice. R22 is going to fade into obscurity in 2010 and beyond."

Ron and Clee Allen chose future energy savings when they chose their new units. The couple says that since they were getting something new anyway, they would buy the most energy-efficient model they could afford. They replaced their downstairs unit, which runs much more frequently to cool living space with a 13 SEER unit. They went with one of the older 10 SEER models upstairs.

"We asked a lot of questions before making our decision," says Clee Allen. "We also looked at other features such as variable speed, which would keep the unit running all the time and keep the house at a more constant temperature. We have high ceilings and older ductwork downstairs, so we wanted something that was going to bring our gas bills down. They gave us all the options, and the 13 SEER just made more sense for what we were looking to accomplish."

Karen J. Bannan is a freelance journalist based in New York. She covers business, health, and technology for publications such as Woman's Day, Robb Report, Advertising Age, and Parents.