The recent Inflation Reduction Act enacted laws around global warming and established higher minimum standards for heating and cooling efficiency that goes into effect on January 1, 2023, reports Service Plus co-owner, Chris Cunningham. According to Cunningham, “Increased efficiency requirements increase the cost of new equipment; and if your furnace and air conditioning system is over 10 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.
“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 12 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 continued, “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.”
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.”
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,” said Emily, “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.”
Service Plus Heating, Cooling, and Plumbing is a customer service-focused heating, cooling, and plumbing company with a client base dating back to 2003. Service Plus specializes in designing, engineering, and installing complete heating and cooling systems for residential homeowners. Schedule your next appointment online or give us a call (317) 434-2627.