You’ve probably heard of SEER rating and likely know that it relates to the efficiency of your air conditioner or heat pump. This is true.
We’re going to make this article a lot more useful than that, though.
What can you expect in cost savings with a SEER upgrade? How accurate is the SEER rating actually? Is it worth upgrading from my current system, or paying more when I replace my system? These are the questions that we get from customers, and that you can actually use to make better decisions.
We’ll cover all of this and more. There are plenty of articles that will give you the definition of SEER, and that’s here too. But most stop there, before they provide actual value to you. We’re committed to going that extra bit, and hope you’ll enjoy learning about this topic in ways that can apply directly to your HVAC decisions.
What is a SEER Rating?
SEER stands for Seasonal Energy Efficiency Ratio. It’s a calculation that measures the energy efficiency of air conditioners and the cooling side of heat pumps.
Older systems these days are often 8-10 SEER, while anything new has minimum standards of at least 14-15 SEER. High-end cooling systems can reach 20-22 SEER. While some can technically get even higher, typical home systems top out around that level.
Let’s be clear, though, that definition above is true, but is partially in this article for the search algorithm or that one unfortunate high school kid who’s doing a book report on HVAC for some reason. You’re welcome, Braden!
For the rest of us, you don’t actually need to remember what the acronym stands for, only that it relates to energy efficiency, and that higher SEER is better.
How Is SEER Calculated
AHRI – the Air Conditioning, Heating and Refrigeration Institute – has standardized a test that runs cooling equipment through tests in a variety of different temperatures.
SEER rating is an average performance across all of these parameters. It’s intended to estimate the unit’s performance over an entire cooling season.
Remember that this is an average, though. Any cooling unit will operate more or less efficiently depending on those conditions.
Difference Between SEER and SEER2
There’s a newer calculation called SEER2 that’s being used more and more. Most articles you’ll read about SEER these days are actually discussing SEER2.
So what’s the difference? For our purposes, enough to make a difference, but ultimately it’s a somewhat similar calculation.
SEER2 is a more detailed calculation that increases the number of variables being analyzed, including various indoor humidity levels. It will be the more accurate of the two calculations, but is still an average of performance. Additionally, the most important bit for you as a homeowner is to make sure you’re comparing apples to apples, SEER or SEER2 ratings, so that there’s no confusion.
If you get an estimate and are unsure which is being measured in the materials you’re being shown, make sure you ask your HVAC rep.
SEER vs. EER
Oh no, another acronym! It’s ok, this one has a smaller use-case that probably won’t apply to you if you’re looking for a whole-home cooling system.
EER is a simpler calculation, and it’s applied to smaller cooling units that aren’t central air units intended to cool an entire home.
Window air conditioners will have an EER rating, for example. The rating measures their performance at a single temperature (95 degree) and running at a constant rate.
SEER and Energy Efficiency
The entire reason you should care about a high SEER rating is that it corresponds to higher energy efficiency. This has importance for both your energy bills and your home comfort, since a more efficient unit will be able to work through tougher conditions and still keep your home cool.
At less extreme conditions, a unit with a higher SEER rating will be able to cool your home with less energy used. Lower SEER ratings will see the opposite, with less efficient cooling.
At the highest outdoor temperatures and indoor humidity levels, any system will be using a fair amount of energy, but the best systems can keep up better than others because they’re making more efficient use of their energy. If your system has ever struggled to cool your home when it’s 100 degrees out, you know what this feels like!
Calculating Cost Savings From SEER Upgrades
We’ll crunch some numbers in just a moment, but the first caveat we want to include is that HVAC energy savings only affects a portion of your overall energy bill. This is important to keep in mind. Your HVAC energy usage is typically only 40% to 50% of your total energy expenditure.
Savings from SEER upgrades can be significant, though. A 10% reduction in spending because of an air conditioner upgrade may only be a 5% reduction in your total energy costs. But it could still equate to hundreds of dollars per year.
The popular HVAC manufacturer Trane estimates a 26% savings between 13.4 and 18 SEER2 ratings. More generally, each increase of one point of SEER rating generally calculates out to between 4% and 5% in additional cost savings.
You can use these figures to estimate your own energy savings:
- Calculate your average monthly or yearly energy spending.
- Divide this number in half. This is an inexact number but will be reasonably close for most homes and their HVAC expenditure.
- Divide it again based on the number of months you use your cooling system. This get you to your typical cooling expenditure.
- Apply the cost savings based on the rough percentages listed above.
Depending on the area of the country you live in, energy costs, how much you use your system, and what sort of upgrade you’re considering, you could be looking at anywhere from a few hundred to a few thousand dollars in yearly savings.
This isn’t an exact calculation, because exact calculations are next to impossible in ways that will be applicable to every home. However, it should give you a rough idea of your potential for cost savings.
You can then weight these savings against other cost factors:
- A higher SEER system will cost more to install. Getting a quote from a trusted HVAC contractor is the best way to get exact differences between SEER values.
- Repairs for higher-SEER units tend to run as much as 20% more. If you are regularly getting your system tuned up by a licensed professional, the dangers of this are generally low, but they’re never nonexistent.
SEER Rating and Home Comfort
I may have buried the lead. Cost savings is good, of course, but the real reason to
SEER isn’t the end-all, be-all metric you’ll want to look at for home comfort. For example, the staging levels of your equipment can be just as important, if not more so!
ALSO READ: One-Stage, Two-Stage and Variable Speed Air Conditioners
Regardless, the biggest reason we recommend high-SEER systems to customers is because they’re struggling with home comfort. Maybe it’s pockets of hot air that never seem to cool properly. Maybe it’s an unbearably hot master bedroom during the summer months.
Whatever the reason, your comfort comes first. Yes, SEER upgrades will save you some money as well, and we’ll talk more below about how you can save even more via rebates and tax credits! But the true reason to consider an upgrade is that you’ll feel better in your own home.
Regional Minimum SEER Requirements
Currently, the minimum SEER requirements depend slightly on what region of the country you live in. If you’re in a northern state, 14 is the minimum required SEER rating. For southern states, this number is 15 SEER.
Importantly, this is only a requirement for newly installed units. If you have an older system, chances are it’s lower than 14 SEER, but this doesn’t mean you’re required to replace it.
The minimum requirements are a result of increased public emphasis on energy efficiency for home appliances and systems, and the increasing sophistication of HVAC technology. A basic 8-SEER air conditioner (or similar efficiency) was installed in hundreds of thousands of homes for decades. HVAC has come a long way, though, so there’s no need for this inefficiency in new systems.
Rebates and Tax Credits for Higher SEER Systems
There’s good news when it comes to upgrades: many high-SEER systems are eligible for rebates and tax credits, as states and municipalities increasingly incentivize green initiatives and energy-efficient equipment.
Here in Sacramento, for example, rebates and credits exist that can save homeowners thousands of dollars on HVAC upgrades.
We can’t guarantee that you’ll be eligible for rebates on upgrades. Too much depends on the incentives in place where you live, which can change yearly or even seasonally, and vary from state to state and city to city.
However, many do qualify. Ask your HVAC installer about rebates, and make sure you research your state, county and city’s programs for green home equipment, which may save you thousands on an air conditioner or heat pump replacement.
So What’s a Good SEER Rating? Picking the Right SEER for your HVAC System
What’s the right SEER for you? We can’t answer that for you, but you now have the tools to answer it for yourself.
Is it difficult to cool your home? Do you run your AC constantly in the summer? Are there significant rebates available for top-end equipment?
If you answered “yes” to even one of those questions, it’s at least worth considering a high-end model that will save you the most money and provide the most comfort in the long-run.
When you’re ready to work with an HVAC professional in selecting your next system, we hope you’ll give CABS Heating and Air Conditioning a call! We take pride in earning the long-term trust of our customers and providing no-hassle, no-obligation quotes and installs, and providing top-notch maintenance to keep your system at max efficiency for years to come.
