In general, a higher SEER unit will be more expensive than a lower SEER unit. However, while a 16 SEER unit typically has a higher upfront cost than a 14 SEER unit, it will provide greater energy efficiency, which can reduce a home's monthly utility bills over time.
Long-Term Savings
So even though the initial cost of a 16 SEER system may be higher than a 14 SEER system, the energy savings can make up for it in the long run. This makes a 16 SEER unit a much better option if you're looking at saving money on energy bills in the long run.
Benefits of a Higher SEER Rating
Replacing an 8 SEER AC or heat pump unit with a 16 SEER one may save you up to 50 percent on your energy bill. Additionally, there are government incentives and rebates for high-efficiency AC systems that can help lower the cost of the upgrade.
Packaged central air conditioners must meet SEER2 ≥16.0 and EER2 ≥11.5 to be eligible.
What SEER rating qualifies for tax credit 2024? Split ducted heat pumps and packaged heat pumps must meet a SEER2 rating of 15.2 or above. Non-ducted heat pumps must meet a SEER2 rating of 16 or above.
Any combination of heat pumps, heat pump water heaters and biomass stoves/boilers are subject to an annual total limit of $2,000. (Note: ENERGY STAR certified geothermal heat pumps are eligible for a separate tax credit and not counted against these limits.)
The average life expectancy of a residential HVAC system is about 15 to 20 years. Regular maintenance can extend the lifespan, but technological improvements and efficiency gains often justify replacement earlier.
Repair: Older AC units typically have lower energy efficiency ratings (SEER), which means higher electricity costs. For instance, a 20-year-old unit may have a 10- or lower SEER.
4-ton units can come in various types and efficiencies, which impact your total costs. The average cost to install a 4-ton central air conditioner is $6,000 to $11,000. Most homeowners spend around $8,500 on a 16 SEER split system fully installed with minor modifications to existing ducts.
In general you should consider upgrading to a higher SEER if you live in a very hot climate and/or if you have a large home. The best way to see how much a higher SEER unit can save you is by checking an online SEER calculator.
The quietest AC units
Carrier Infinity® 26 Air Conditioner with Greenspeed intelligence: As low as 51 db. YXV 21 SEER Variable Capacity Air Conditioner: As low as 53 db. Trane XV18 TruComfort™ Variable Speed: As low as 57 db. Lennox XC25 Variable-Capacity Air Conditioner: As low as 59 db.
For those conscious of their energy costs, choosing an air conditioner with a higher seasonal energy efficiency ratio rating can be beneficial. A SEER rating of 18 or above is considered to be very good and optimal for maximum efficiency and money savings.
A 16 SEER unit is about 13% more efficient than a 14 SEER. For every $100 you spend to cool your home with a 14 SEER, you could save $13 on your monthly bill by upgrading to the 16 SEER unit. But just like gas mileage, your ability to meet this maximum efficiency and savings depends on a lot of other factors.
A 16 SEER model is more efficient than a 13 SEER unit. This means that it can cool your home using less energy, leading to lower energy bills.
Air-source heat pumps are among the most efficient HVAC systems in 2024. These systems perform dual functions and are hence, capable of providing heating and cooling. This allows one to have uniform temperature regulation throughout the year.
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.
While some 20-year-old heat pumps may still function adequately, it's important to evaluate their efficiency and performance. Older heat pumps tend to be less energy-efficient and may require more frequent repairs.
Having a higher SEER rating will save you money on energy efficiency. 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.
AC Unit Volume
Newer, more advanced systems have the ability to suppress the overall noise volume through sound jackets, dual compressors, smoother operation and variable speeds. Compared to older 10 SEER units, 16 SEER units are much quieter.
Packaged Heat Pumps
In order to qualify under the South Region, systems must meet or exceed 15.2 SEER2, 10.6 EER2 and 7.2 HSPF2. 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 $2000.
The amount of the credit you can take is a percentage of the total improvement expenses in the year of installation: 2022: 30%, up to a lifetime maximum of $500. 2023 through 2032: 30%, up to a maximum of $1,200 (heat pumps, biomass stoves and boilers have a separate annual credit limit of $2,000), no lifetime limit.
The average cost of a new heat pump installation is $5,613. Most homeowners spend in the range of $4,068-$7,160. The original cost will depend on a number of factors including the equipment used, permits required, and labor charges.