SEER, or Seasonal Energy Efficiency Ratio, is an HVAC industry term that measures how energy efficient a cooling system is on a seasonal basis. In certain conditions, a higher SEER rating indicates the cooling system uses less energy to produce the same amount of cooling.
All you need to keep in mind is that a higher SEER means a more efficient unit, cooling your home better and faster while saving you money on your electric bills.
Choosing 14 SEER vs. 16 SEER is a complex decision. The first thing to know is that a 16 SEER AC unit uses about 13 percent less energy than a 14 SEER unit. In layman's terms, for every $100 you spend with a 14 SEER AC unit, you would only spend about $87 with a 16 SEER unit.
A 20 SEER AC unit is 43 percent more energy efficient than a 14 SEER system, making it very eco-friendly. However, the cost difference for a 20 SEER unit vs a 14 SEER system is significant so make sure you do the math for your situation.
An 18 SEER HVAC unit can offer annual savings on your power bill of up to 28%. That is significant when you want a mid-efficiency, quality cooling system with substantial cost savings. With a 20 SEER unit, you are choosing a high-efficiency air conditioner that offers you up to 35% savings on your power bill per year.
An 18 SEER is around 12.5% more efficient than a 16 SEER. That means for every $100 you spend to cool your home with a 18 SEER, you'll save about $12.50 more than the 16 SEER. A good rule of thumb, the higher the SEER the more you'll save on your electric bill.
When shopping for a central AC unit, pay attention to the Seasonal Energy Efficiency Ratio (SEER) ratings. Higher SEER ratings mean better energy efficiency and lower energy bills. For a 2500 sq ft home, look for units with a SEER rating of at least 14.
The higher the SEER rating, the more efficient the AC unit is. AC units with SEER ratings of 16 or higher are considered high-efficiency systems. The best high-efficiency air conditioners have SEER ratings of 26 or higher. These AC units use less energy to cool your home, which can save you money on your energy bills.
The standards have to keep evolving as the technology does or else we'd be stuck in the figurative stone age with our heating and cooling solutions. That's why the United States Department of Energy or DOE has decided to discontinue production of air conditioners with a SEER rating of 14.
Air Conditioner Tax Credit
You can earn 30% of the project cost or a maximum of $600 credit for installing a qualified AC unit. For split systems, ENERGY STAR-certified air conditioners with SEER2 at or above 16 are eligible. All ENERGY STAR-certified packaged systems are also eligible.
Both American Standard and Trane offer top-quality products, with the main difference being how they position themselves in the market: Trane has built a reputation as a premium brand, while American Standard offers comparable products at a lower price.
According to the Kobie SEER Energy Savings Calculator, a 16 SEER unit uses about 13% less energy to produce the same amount of cooling as a 14 SEER unit of the same size. That means that for every $100 you'd pay to run your 14 SEER unit, you could save $13 by upgrading to a 16 SEER unit.
What products are eligible? Effective January 1, 2025, split system central air conditioners must meet SEER2 ≥ 17.0 and EER2 ≥12.0 to be eligible. Packaged central air conditioners must meet SEER2 ≥16.0 and EER2 ≥11.5 to be eligible.
It has been documented that increasing your SEER rating can save you anywhere from 7-48% on your utility costs. While the installation cost may increase with each SEER level, adding the cost savings over the life span of the HVAC system shows how it can pay for itself.
But higher-SEER systems can get the job done more efficiently, which can save you money. If your current air conditioner or heat pump is below 13 SEER, you could see even more savings. I've seen 20- to 35-year-old air conditioners that were likely 6 SEER when they were installed.
Ducted AC Split Systems (or Mixed Ducted and Non-Ducted)
Individuals who purchase and place into service qualifying equipment between January 1, 2024, and December 31, 2024 may qualify for a non-refundable tax credit of up to $600 per system, subject to an annual limit of $1200 per taxpayer.
In addition, higher SEER units typically have longer lifespans than lower SEER units, so you'll save money on replacement costs as well. For these reasons, it makes sense to invest in a high-efficiency air conditioner, even though the upfront cost may be higher.
Since January 2006, all residential air conditioners sold in the United States must have a SEER of at least 13. ENERGY STAR qualified central air conditioners must have a SEER of at least 14. By upgrading from SEER 9 to SEER 14, you can reduce your energy consumption by more than 35%.
The square footage covered by a 3 ton AC unit depends on multiple variable but accounting for a quick estimate, roughly 1500-1800 square feet.
However, the truth is an oversized system will not do a better job of cooling the house or provide any extra comfort over a properly sized unit. Air conditioner size is calculated in BTU (British Thermal Units) and tons, and measures how much heat the system can remove from the home in one hour.
The average price for a standard AC unit providing a 13 to 14 SEER rating is around $3,000 for total unit installation. 16 SEER: A mid-range option with a balance of efficiency and cost, a 16 SEER unit typically costs around $4,500 for total installation.
HVAC Pro Cost
Most people pay $500 to $2,500 in labor for AC replacement.
Homeowners insurance covers HVAC systems when the damage is a result of a covered disaster or peril, including high winds, fallen trees, theft, hail or even a fire. So if lightning strikes your unit and damages its electrical components, your homeowners insurance policy would probably cover it.