The seasonal energy efficiency ratio (SEER) is an important concept for anyone upgrading to a new air conditioner or heat pump. Choosing a higher SEER rating may reduce your cooling costs significantly over the life of your system. Let’s explore how to use the rating to make a better buying decision.
SEER
SEER measures cooling efficiency over an entire theoretical cooling season. The rating gives consumers an easily digestible number that reflects how much an AC will cost to run each summer. The federal government requires manufacturers to include it with all ducted and ductless cooling systems. You can use the SEER rating at face value to compare ACs.
The U.S. HVAC industry measures cooling output in British thermal units (BTUs). The number of BTUs you need depends on the size of your home. Let’s say you need a 30,000-BTU AC. You can divide that number by the SEER rating to estimate watts consumed over a season. If you purchase a SEER 14 AC, it will use about 2,143 watts. If you upgraded to a SEER 18 AC, it would only use about 1,667. The average cost of a watt in the U.S. is 10 cents, which means you’d save about $48 a year.
History of SEER
The U.S. Department of Energy partnered with the American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE) to develop SEER. They introduced it in 1979. ASHRAE maintains the laboratory testing requirements and all other aspects of the rating. The American National Standards Institute (ANSI), in partnership with ASHRAE, standardizes the rating. The DOE is responsible for regulating it, and in 1992, it introduced SEER minimums.
SEER2
Laboratories base this measurement on an outdoor temperature of 82 degrees Fahrenheit and 39% relative humidity (RH). The indoor setting is 80 degrees at 50% RH. SEER reflects how much electricity the system uses to maintain that temperature. They use the same approach whether testing a central AC or ductless mini-split. The problem is that ducts contribute significantly to energy losses because of air leakage and other factors.
The DOE and ASHRAE introduced SEER2 in 2023 to account for this. The new testing procedures require the use of ducts where applicable. You cannot compare SEER to SEER2. If purchasing a ducted system, emphasize SEER2. Otherwise, you can use either. As of 2023, manufacturers must include SEER and SEER2 with all cooling systems. In the future, the DOE will phase out the original SEER rating entirely, and SEER2 will take its place.
HSPF
ACs use refrigerant to move heat energy from inside your home to the outside. Heat pumps are ACs with a reversing valve. That valve allows that process to run in reverse. In other words, a heat pump can also heat your home by moving heat energy inside. The heating seasonal performance factor (HSPF, HSPF2) is similar to SEER but measures heating efficiency over the winter.
What About EER?
The energy efficiency ratio (EER, EER2) measures peak cooling performance. For most homeowners in the U.S., SEER is much more useful. It’s more indicative of AC efficiency during normal usage. If you were in an environment where 95-degree days were the norm, EER would be more useful.
DOE Minimums
As mentioned, the DOE introduced the concept of SEER minimums in 1992. It also organized the U.S. into three regions with different HVAC needs: North, Southeast, and Southwest. Over the years, the DOE has updated the minimums based on HVAC innovations and energy conservation standards. As of this writing, the most recent update occurred in 2023. In the North, the minimums are 14 SEER and 13.4 SEER2. In the Southeast and Southwest, the minimums are SEER 15 and SEER 14.3. The law forbids HVAC manufacturers from selling ACs that don’t meet these standards.
ENERGY STAR
ENERGY STAR is a joint program between the DOE and the Environmental Protection Agency (EPA). Through the program, the DOE and EPA set energy efficiency standards for appliances. Manufacturers do not have to meet these standards. Products that do can receive ENERGY STAR certification. If you purchase an ENERGY STAR AC, you know that an independent lab has tested its efficiency. In addition, that certification is often a requirement for any rebates and tax credits. The minimum SEER2 rating for ENERGY STAR certification is 15.2.
Rebates
There are many rebates available for ACs and heat pumps. Typically, these incentives are available to communities through their local utility companies. There may also be rebates from manufacturers, private groups, state and local governments, and so forth. You can use the ENERGY STAR website to find rebates by zip code. We also recommend contacting your state government and local utility companies. Note that if you have multiple rebates available, you can claim them all.
Tax Credits
The current Energy Efficiency Home Improvement Credit is available from January 1, 2023 to January 1, 2033. In all likelihood, the government will extend it before then. This is a tax credit that has existed in one form or another for many years. In its current iteration, you can claim 30% of an ENERGY STAR AC or heat pump installation up to $2,000. Note that this is not a refundable credit and that you cannot claim multiple credits. Consumers purchasing heat pumps should look at the federal High-Efficiency Electric Home Rebate. This rebate can offset your costs by as much as $14,000.
Identifying SEER Rating
The EPA provides SEER data for all systems it has certified through the ENERGY STAR program. Most HVAC manufacturers provide this information on their websites. If shopping for ACs or heat pumps in person, look for the yellow EnergyGuide sticker. The federal government requires manufacturers to provide this label. It will list SEER, SEER2, EER, EER2, and many other details.
Selecting the Right SEER Rating for Your Home
We recommend consulting with a professional HVAC installer early in the process. Your installer can help you choose the ideal SEER rating based on multiple factors, including your budget and the system tonnage. An AC with a higher SEER rating will certainly cost less to run. High-efficiency systems also cost more to purchase and may cost more to maintain.
The practical approach is to find the right balance between your initial and long-term costs. Calculate how much the higher-efficiency system will save you over the next 15 to 20 years. That’s how long most ACs last. Now, factor in any rebates and tax credits you can claim. Are the long-term savings worth the additional upfront investment?
Would You Like to Upgrade to an Energy-Efficient HVAC System?
KC Home Services is a family-owned and -operated HVAC and plumbing company that serves Santa Rosa and the surrounding areas. Our HVAC technicians install and service furnaces, heat pumps, air conditioners, and ductless mini-splits. We specialize in smart thermostats, ventilation, air purifiers, dehumidifiers, and humidifiers. Our plumbers perform camera inspections, clean drains, and provide sewer services. We install and repair fixtures, sump pumps, and tank, tankless, and heat pump water heaters. Our plumbers and HVAC technicians are also available around the clock for emergency services. Call today or contact us online to schedule an appointment.
