HVAC Price Increases for 2023

by | Apr 3, 2023

Several HVAC manufacturers have already announced price increases for 2023, but what does this mean for the Arizona homeowner?


The new SEER2 regulations implemented by the U.S. Department of Energy intend to lower energy use but will inevitably drive price hikes and parts shortages within the HVAC industry. Currently, HVAC price increases range anywhere from 3% to a staggering 20%!


But the truth is, the new regulations aren’t the only reason for higher HVAC prices. Rising labor rates, higher fuel costs, supply chain issues, constant technological advances, and SEER2 regulatory changes all contribute to the HVAC price increases we’re seeing for 2023.


The U.S. Department of Energy’s NEW Energy-Efficiency Standards

The SEER, or Seasonal Energy Efficiency Ratio, represents the cooling efficiency of an air conditioner or heat pump. A higher SEER number indicates better cooling efficiency. Starting January 1, 2023, the new and updated SEER2 regulations took effect in the United States.


SEER2 is the U.S. Department of Energy’s new energy-efficiency standards and replaced the SEER rating measurement system. To meet the new SEER2 requirements in Arizona, California, Nevada, and New Mexico, also known as the Southwest Region, the following conditions must be met:


  • Residential central AC systems below 45,000 Btu must have a SEER2 rating of 14.3.
  • Residential central air conditioning above 45,000 Btu must have a SEER2 rating of 13.8.
  • Heat pumps must also have a SEER2 rating of 14.3, but SEER-rated units may still be sold and installed.


What the New SEER2 Ratings Mean for You

The new SEER2 changes mean that you may need to consider replacing your HVAC system now if you want to save money later. We know that there are endless benefits of energy-efficient air conditioners and heat pumps. But most importantly, increasing efficiency standards means using less energy over time, which means additional savings in the long run– and a more sustainable future.


It’s important to remember that all air conditioning units sold/purchased in Arizona and the Southwest region that do not meet the new SEER2 energy-efficiency standards cannot be installed after January 1, 2023.


  • For the Southwest region, central AC units will need to have a SEER2 rating between 14.3 and 13.8 to meet the new requirements.
  • Single-packaged units such as air conditioning units, heat pumps, gas electrics, and dual-fuel HPs can still be sold and installed with their current SEER ratings of 14.0 SEER and 8.0 HSPF despite the current SEER2 regulatory changes. *But these single packaged units will have to meet SEER2 rating requirements of 13.4 SEER2 and 6.7 HSPF when subjected to new testing methods.
  • Heat pumps with the existing SEER rating can still be sold and installed after January 1, 2023.
  • If you decide to repair vs. replace your air conditioner or heat pump, keep in mind that SEER parts may see price increases as they become less available.


The U.S. Department of Energy’s new energy-efficiency standards will result in HVAC price increases for central AC systems, heat pumps, heating and cooling equipment, and other parts and supplies.


Other Reasons for HVAC Price Increases

  • The costs of R-410a refrigerant have quadrupled in less than two years, revealing potential complications in the supply chain and a surge in demand.
  • The conflict in Ukraine and Russia halted Trans-EuroAsia Logistics, a main railway, and stopped the transportation and distribution of some of the critical components needed for multiple industries in the U.S., including heating and cooling supplies.
  • Increases in fuel prices translate to higher transportation costs for manufacturers and distributors of HVAC equipment and parts.


Consider Replacing Your AC vs. Repairing It

With proper maintenance, your HVAC system should last 15 years or more. For large purchases and home investments like a central AC unit or heat pump, “if it ain’t broke, don’t fix it!” But in light of the new energy-efficiency standards for central air conditioners and heat pumps, you may want to consider replacing your HVAC system sooner rather than later. Replace over repair … in this economy?


Well, the new SEER2 ratings indicate higher energy efficiency and imply lower energy costs. Plus, the U.S. Department of Energy’s new standards for energy-efficient appliances means that older and lower-priced units won’t be available on the market anymore. Overall, experts expect the SEER2 regulations will continue to drive HVAC price increases in 2023. So if your central AC or heat pump is nearing the end of its life, you may want to evaluate the benefits of updating to new SEER2 requirements.


Stay Ahead of HVAC Price Increases with Expert SEER2 Consultation and HVAC Installation

If you’re wondering whether you should repair or replace your air conditioner under the new SEER2 regulations, our qualified experts at Team Air-zona can help you explore your best options. Team Air-zona is known for our superior HVAC and AC installation, replacement, and maintenance services in Queen Creek, Chandler, and Gilbert.


Stay ahead of changing SEER2 regulations and HVAC price increases with expert support from your neighborhood HVAC experts! Give us a call today.

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