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GAZETTE Newspapers
By: Arthur S. Lazerow
Air Conditioner Efficiency Standard Raised
Several real estate
office managers recently asked me to research how the federally
mandated increase in energy efficiency for newly manufactured
central air conditioning systems to SEER 13 will impact real
estate transactions. The larger question, of course, is what
will be the impact on property owners as older, less efficient
equipment need replacement?
Prior to January 13, 2006, the energy efficiency rating for air
conditioning systems, known as SEER, or Seasonal Energy
Efficiency Rating, was SEER 10, meaning that no central A/C
equipment could be manufactured with an efficiency lower than
10. That standard was raised to SEER 13 and became effective on
January 23, 2006. The higher the number, the less energy the
air conditioning system utilizes. This is good for the
environment and good for occupants’ pocket books. But the law
of unexpected consequences rears its ugly head!
After researching this issue and discussing it with my favorite
HVAC contractor, it appears that on the near term, there should
be no significant impact on homeowners or on the sale of a
residential property when air conditioning equipment becomes
dysfunctional.
Here’s the problem in a nutshell. A central air conditioning
system is identified as barely operating or non-functioning
because of a compressor or condenser problem in the outside
unit. If it is either not repairable due to age or the repair
parts are not available, the condenser would have to be
replaced. But the new SEER 13 condensing units may not be
compatible with the coil of the inside air handler, requiring a
costly total system replacement.
HISTORY: This issue has been a political football. After a
seven-year review period during the Clinton Administration, the
SEER rating of 13 was approved. In 2001, the Bush
Administration, bowing to industry pressure, ordered a rollback
to SEER 12, but the 2nd Circuit of the U.S. Court of Appeals
overturned this on January 13, 2004. On March 17, 2004, the Air
Conditioning and Refrigeration Institute withdrew its legal
appeal of the SEER 13 Standard, which permitted the SEER 13
regulation to become effective.
PRACTICAL IMPLICATIONS FOR
PROPERTY OWNERS. Repair parts are available for all common
makes of A/C equipment. In addition, there is currently a
sufficient supply of replacement condensing units with SEER 10
or higher ratings and with lower prices should a condensing unit
need replacing this summer.
My heating contractor
compared this situation to the automobile industry. Current
models contain components that are improved from an energy
utilization or modernization viewpoint, but repair parts remain
available to fix older equipment. Bear in mind that the new
regulations only prohibit the manufacture of A/C systems rated
less than SEER 13. They do not require the upgrade of defective
less-efficient equipment and they do not prohibit the repair of
older, existing equipment.
ESTIMATED SAVINGS. There is
no doubt that down the road, as inventories of replacement SEER
10 equipment are dissipated, there will be no alternative to
switching to the more efficient models. A switch from SEER 8 to
SEER 13 equipment is estimated to save about 62% and a switch
from SEER 10 to SEER 13 equipment will save about 25% on the
cost of energy. With today’s high cost of electricity,
especially during the summer air conditioning season, these
represent significant savings.
The issue becomes is what to do with older equipment this year.
Glen Hourahan, vice-president for technology at Air Conditioning
Contractors of America, pointed out that “if the equipment is
more than 10 years old and (an owner) is starting to have
difficulties with it, they might want to look into replacing it
this year, even if it hasn’t failed yet.” The first few years
of manufacturing of the higher efficiency SEER 13 models will
undoubtedly be more expensive than SEER 10 equipment, which is
currently still available. He estimates a 20-30% increase in
installed prices. Homeowners living with a tight budget may
want to replace outmoded equipment while a less expensive
alternative to SEER 13 equipment remains available.
Many people, however, with an eye on improving energy efficiency
and the resultant savings in operating costs, will definitely
want to upgrade older, inefficient equipment with a SEER 13 or
above system. SEER 13 is not the maximum efficiency. Lennox
has a SEER 19 unit.
Have a question relating to a housing or environmental issue?
To contact Mr. Lazerow, click on “Contact Us” at
Albaninspect.com. Mention “Gazette Newspapers” in your
question. Every question will be answered and some will be
included in this column.
Arthur Lazerow, president of Alban Home Inspection Service,
Inc., is a nationally certified ASHI home inspector, having
performed more than 6000 inspections during the past 11 years.
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