New federal requirements to drive up costs for heating and cooling equipment - Service Plus Heating, Cooling & Plumbing
HVAC costs rising

There will not be a better time than now to replace your old heating & cooling system. We expect costs to increase between 15-25% starting January 2023.

Now May Be the Best Time to Buy a New System

It will never cost less than today for a new home heating and cooling system. “If you anticipate the need to replace in the next 24 months,” Emily says, “we’re here to help consumers navigate their options to see if they can save significantly by replacing now before the new regulations take effect.”

Recent federal law established higher minimum standards for efficiency that go into effect January 1st, 2023, reports Service Plus co-owner, Chris Cunningham. According to Cunningham, “increased efficiency requirements will increase the cost of new equipment, by as much as 15-25%; and if your furnace and air conditioning system is over ten years old or you’ve considered taking advantage of the superior efficiency, reliability, and comfort of a new system, you may want to act quickly.” Add in the expected consumer demand and it’s no surprise the price of heating and cooling equipment is expected to jump over the next year, he adds.

Does it make sense for the average homeowner to upgrade now instead of waiting? Emily Cunningham, co-owner says that depends on a variety of factors. “We can’t tell you yes or no until we take a closer look at your current system and compare that with the options, we have available,” she notes. “We don’t make recommendations until we sit down with homeowners to analyze their current bills and show them how much less they could expect to pay with a new system. Plus, we don’t just look at dollars. We’re also eager to help them find ways to make their homes more comfortable.”

Right Now, Get Cash for Your Old System

That’s right, get cash for your old system!  Right now Service Plus is promoting The New Inflation Recovery Act’s Cash for Clunkers paying cash for your old HVAC system, and saving you up to $2,515 for the purchase of a new one.  That savings, on top of the 15-25% increase in equipment costs in January 2023, can mean total savings of more than $4,000 to $6,000 depending on your new system.  If you’ve been considering a new HVAC system, now is a great time to replace your old furnace or air conditioner with a more efficient one. Special financing, rebates, and tax credits are included in this program. So why wait? Now is the perfect time to upgrade!

The New Federal Mandate is called SEER2

“The new federal mandate on the industry is called SEER2 and will force the industry to boost the efficiency of home heating and cooling equipment in our part of the country,” Chris explains. That’s the first increase in efficiency standards for the Indianapolis area since 2006. The good news is that higher-efficiency systems save homeowners some money on their energy bills, but the not-so-good news is that it costs more to install and for equipment manufacturers to produce these higher-efficiency systems.

Already, home heating and cooling equipment prices have risen over the past twelve months because of the supply chain, raw material, and inventory issues. According to Contracting Business, they are projected to jump another 15% to 25% with the new federal mandate. Affordability will be a serious issue for HVAC equipment moving forward.

Chris continues, “Sometimes homeowners choose to delay upgrades because they believe waiting will give them access to something better,” he explains, but the equipment we’re installing right now is state-of-the-art and most systems already outperform the new federal minimum standards. That means you can enjoy the energy-saving benefits of a new system right away before the mandate drives up the cost.”

Service Plus Heating, Cooling & Plumbing is a customer-service-focused heating, cooling, and plumbing company with a client base dating back to 2003. Currently, they are promoting The New Inflation Recovery Act’s Cash for Clunkers paying cash for your old HVAC system, and saving you up to $2,515 for the purchase of a new one.  Service Plus specializes in designing, engineering, and installing complete heating and cooling systems for residential homeowners in the Indianapolis metro area. Schedule your free estimate online or give us a call at (317) 434-2627.

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