An energy-efficient air conditioner can save you hundreds of dollars over a typical cooling season, but how do you know which unit will save you the most money? SEER ratings can help you determine the efficiency of a unit at a glance so you can choose the best air conditioner for your needs.

This rating system measures the energy efficiency of a cooling unit. A higher rating means the system operates more efficiently, reducing your utility bills and minimizing your carbon footprint. Let’s explore how an AC with a higher SEER can save you money on energy bills.

What Are SEER Ratings?

SEER (Seasonal Energy Efficiency Ratio) ratings help consumers understand the amount of electricity a cooling system uses and make an informed purchase. A higher rating means that the unit uses less energy to operate during, which can lead to significant savings on utility bills.

The rating is calculated by dividing the total BTU output of a cooling appliance by the wattage it consumes. This calculation is similar to determining a vehicle’s fuel economy in miles per gallon: the higher the SEER number, the more energy-efficient—and cost-effective—the system is.

A SEER rating provides valuable insight into an air conditioner’s energy consumption, much like a car’s MPG sticker. This number helps you estimate long-term operating costs, empowering you to make an informed decision for your home and family.

How SEER Translates to Money

The greater the rating, the more money the unit will save you. For example, an AC with a SEER of 10 will use twice as much energy as one with a SEER of 20 during the same season. It will also cost twice as much to operate.

If a system with a SEER of 20 has energy costs of $100 per month, or $1,200 for the year, an AC with a SEER of 10 would cost about $200 monthly, or $,2400 annually. In a decade, the SEER-20 unit would save the homeowner $12,000 over the SEER-10 unit’s cost, based on current utility rates.

U.S. Law and SEER Ratings

In 1992, the U.S. government set minimum standards on air conditioning systems to reduce the natural resources consumed and protect the environment. At the time, the minimum SEER rating was around 8. The law was updated in 2005 to a minimum rating of 13, thanks to technological advancements that allow more efficient units to be produced.

ENERGY STAR-certified systems must have a SEER rating of 14.5 or higher. Although more efficient systems tend to have higher up-front costs, they may qualify for energy rebates to help offset the expense.

In the United States, the SEER rating for a new unit ranges from 13 to 25, with most units falling within the 14 to 21 range. Minimum SEER rating requirements vary by region, but here in the Kansas City area, the minimum rating is 14. It is unlawful to sell or install new air conditioning units that do not meet these minimum requirements.

The Cost of Use

SEER ratings can only tell you how efficient a unit operates, but many factors may influence how your system performs and determine your actual energy costs:

  • Your habits
  • Your thermostat
  • The weather
  • Your ability to maintain the system
  • Your utility rates

For any cooling system to operate at its best, you must do your part to ensure its longevity and efficacy. While the weather and your utility rates are outside of your control, it is important to remember that you can significantly impact your energy costs. Here are a few ways you can improve your unit’s efficiency and save even more money.

Be Aware of Your Energy Usage

In the cold winters, you might turn up the heat when you’re cold and forget to set the thermostat temperature back down. Many of us also turn our air conditioners to a lower temperature at night. These are examples of habits that affect our energy consumption and the cost of our utility bills. It’s important to realize how these small things can add up.

Choose an Energy-Saving Thermostat

Another great way to improve the energy efficiency of any HVAC system is to install a programmable thermostat, or better yet, a smart thermostat. These thermostats help reduce energy use and costs by automatically adjusting your settings for when you are home or away. It is a great addition to any air conditioning system to save more energy.

Maintenance Saves You Money

Routine maintenance is the most important thing you can do to help your AC operate at its best and improve its life span. It’s important to change any filters, based on the manufacturer’s schedule, and have seasonal maintenance performed in the spring.

If you often forget routine maintenance, a smart thermostat can help by sending you reminders and system alerts. It allows your system to communicate directly with you via a smartphone app and its display.

Up-Front Costs vs. Long-Term Savings

While higher SEER-rated cooling systems can save you more money, they do cost more to install than lower SEER-rated systems. The up-front costs of a new, highly efficient AC can be substantial. This is because they use more expensive and more advanced technology to reduce energy consumption. Installation of a higher SEER-rated cooling unit can also cost more because these systems can be more complicated and have additional components to install.

This is the most controversial part of the SEER laws. To achieve better efficiency, more expensive equipment is necessary. That means a unit with a higher rating may be outside of a customer’s price range.

Rebates and Incentives

As a result of these increased costs, the government offers rebates on ENERGY STAR units and other incentives that offset the costs of a new unit. Utility companies may also offer incentives for using ENERGY STAR products.

These may include tax credits, discounts, and energy credits. These can sometimes be combined, but each rebate and incentive is unique, so it’s important you perform your own research and check with your utility company before you purchase a new system to see what options you may qualify for.

Financing

Financing a more efficient system is another great option for many consumers. This is because a new system could pay for itself in the first several years through the savings you receive. Many consumers pay off their new system with the money they save every month on energy bills and the additional tax credits and rebates they receive.

This option may not be available to everyone, as financing is typically based on approved credit, but it does help many people afford a new system and save more money in the long run.

Reach Out Today

At MVP Air Conditioning, Heating, Plumbing & Electric, we’re committed to helping you save money with the right SEER-rated system. We provide heating, cooling, zone control systems, electrical, and plumbing services in the Kansas City, MO area and are happy to serve our community. Call us today and set up a consultation for your new HVAC system and start saving money on your energy bills.

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