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Author: Ivan

  • HVAC News: What Homeowners Need to Know Now

    1. SEER to SEER2: Real-World Efficiency Standards Are Here
      As of January 1, 2023, the Department of Energy introduced SEER2, a stricter efficiency rating that reflects actual usage conditions more accurately than the old SEER system.

      • Northern states now require at least 13.4 SEER2, which is equivalent to the previous 14 SEER.
      • Southeast and Southwest regions (including Florida) require 14.3 SEER2 for split systems under 45,000 BTU, with EER2 and HSPF2 rating adjustments depending on unit specifications.

      The takeaway? Any repeat equipment installation must comply with these region-based SEER2 standards—or it won’t pass muster.

    • Federal Tax Credits: Act Now—or Miss Out
      Originally, the Inflation Reduction Act of 2022 promised homeowners generous federal incentives for energy-efficient upgrades—extending credits through 2032. The One Big Beautiful Bill Act (OBBBA) of July 2025 changed that. Now, critical credits that include HVAC equipment come with a new expiration date: December 31, 2025.

      What’s At Stake

      Tax Credit Type Covers Original Expiration New Deadline
      Section 25C – Energy Efficient Home Improvement Credit Heat pumps, central ACs, furnaces (30% credit, up to $2,000 for heat pumps; $600 for AC/furnace) Through 2032 Expires Dec 31, 2025
      Section 25D – Residential Clean Energy Credit Solar, geothermal, battery storage (30%) Through 2035 Expires Dec 31, 2025

      To qualify, the equipment must be installed and fully operational—“placed in service”—by the end of 2025. Starting this year, a manufacturer-issued Product Identification Number (PIN) is required to claim the credit.

    • Why These Changes Matter for You
      • Don’t assume 2032 is still the target—the credit window closed early.
      • Only systems meeting SEER2 standards installed before year-end will qualify for tax benefits.
      • Keep all documentation—installation receipts, PINs, utility permits, and Form 5695—for your tax filing.
    • Smart Next Steps for Homeowners
      1. Check efficiency compliance: Partner with your contractor to confirm that your equipment is SEER2-certified per DOE region standards.
      2. Schedule promptly: Aim to have your system installed by mid-December 2025 to buffer against delays.
      3. Track paperwork: Gather all manufacturer documentation, including PINs and invoices, to file IRS Form 5695.
      4. Ask your HVAC provider: Make sure the equipment and installer meet federal standards and can provide all required documentation and guidance.

    Final Word

    Federal tax credits for HVAC equipment are expiring at the end of 2025—far sooner than originally planned under the IRA. Coupled with updated SEER2 mandates, this makes 2025 a critical year for homeowners looking to upgrade. Don’t delay—your savings (and compliance) depend on acting now.

  • Inflation Reduction Act

    HVAC News

    Inflation Reduction Act

    Among several other goals, the 2022 Inflation Reduction Act aims to help reduce everyday living costs for homeowners across the United States. The initiative features a variety of valuable energy efficiency incentives, but what can you do to get in on the action?

     

    Energy Efficient Home Improvement Credit

    Initially scheduled to expire in 2022, the Energy Efficient Home Improvement Tax Credit has instead been revived and extended. Under the Inflation Reduction Act, this incentive — also known as the 25C program — will remain active through 2032. To eliminate any eligibility gaps, the extension was also made retroactive to January 1, 2022.

     

    The popular 25C program provides substantial tax credits to households that install certain high-efficiency equipment. This includes up to $600 for qualifying air conditioners and gas furnaces, with an annual cap of $1,200 per household. The yearly cap even increases to $2,000 when you install a qualifying heat pump, boiler, or heat pump water heater. However, the program’s stringent efficiency standards can significantly limit your options.

     

    High-Efficiency Electric Home Rebate Program

    If you’ve ever considered purchasing a heat pump for your home, now may be the perfect time to strike. The Inflation Reduction Act has appropriated $4.5 billion to fund the High-Efficiency Electric Home Rebate Program (HEEHRP). This program provides tremendous incentives to homeowners who install Energy Star-certified heat pumps.

     

    If your household falls below 80% of the median local income, you may be able to recoup the entire cost of your system. Households that fall between 80% and 150% of the median income can still receive a 50% rebate through the HEEHRP. The program can also provide additional rebates to help upgrade your home’s wiring, electrical service panel, and insulation.

     

    Home Owner Managing Energy Savings Program

    Despite its clunky name, the Home Owner Managing Energy Savings (HOMES) Program promises to deliver serious savings for savvy homeowners. The program includes rebates covering a broad range of retrofits and home improvements that reduce household energy consumption. This includes heating and cooling systems, water heaters, insulation, air, and duct sealing, home energy audits, and more.

     

    To qualify for rebates up to $2,000, your improvements must demonstrate energy savings of at least 20%. Saving more energy will earn you a larger rebate, up to a maximum of $8,000, for a 50% reduction in energy consumption. Be aware, however, that these rebates cannot be combined with other federal efficiency incentives.

     

    The bottom line is that the Inflation Reduction Act has made investing in energy-efficient equipment incredibly appealing for homeowners. If you’re tired of paying high energy bills, talk to your local HVAC contractor about how rebates and incentives can help you save now and in the future.

    06.02.2023
    HVAC news

    SEER Mandates

    06.02.2023
    HVAC news
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  • SEER Mandates

    HVAC News

    SEER Mandates

    The U.S. Department of Energy is about to enforce new SEER standards for HVAC systems, but what does that mean for you? To make sense of it all, let’s break down exactly what’s changing and what effects you can expect to see.

     

    How SEER Measures Energy Efficiency

    It might sound straightforward, but measuring the efficiency of air conditioners and air-source heat pumps is surprisingly complicated. Among other issues, system performance may vary considerably depending on the weather conditions at any given time. Think of it like measuring the fuel economy of a vehicle on a wide-open highway versus sitting in rush hour traffic.

     

    To solve this problem, Seasonal Energy Efficiency Ratio (SEER) calculates a system’s performance across an entire season. This produces a single number that serves as a simple, convenient reference for comparing the efficiency of different units. In essence, a higher SEER rating means less energy used and less money spent on cooling.

     

    Demystifying the New SEER2 Mandates

    For decades, the Department of Energy has enforced minimum efficiency standards for all new cooling systems. Heat pumps and AC systems in the North require a SEER rating of at least 13. In the South and Southwest, the current standard is 14 SEER. However, as of January 1, 2023, these minimum standards will increase by one for most systems.

     

    This update is part of a broader “SEER2” initiative that features new testing procedures. The new SEER2 protocols are designed to better reflect real-world conditions, thus producing more accurate efficiency data. On average, a current rating of 14 SEER will compare to a SEER2 rating of approximately 13.4.

     

    What This All Means for Homeowners

    Since prices typically increase in line with efficiency, it will likely cost more to install new HVAC systems beginning in January. However, you won’t be required to replace existing equipment that falls below the new SEER2 standards. In addition, any added equipment costs may be offset over time by the resulting savings on energy bills.

     

    Another key change coming in 2023 is the phase-out of R-410A refrigerant. This refrigerant will no longer be used in newer models but is still common in many current air conditioning units. Once again, the good news is that existing systems need not be replaced to comply with the new regulations. Nonetheless, if you currently have an R-410A system, it may be time to start planning for an eventual equipment upgrade.

     

    The 2023 SEER2 mandates mark an important shift in the HVAC industry, but homeowners have no cause for alarm. While the cost of new AC and heat pump systems may increase, the corresponding jump in efficiency should be great news for all.

    06.02.2023
    HVAC news

    Inflation Reduction Act

    06.02.2023
    HVAC news
    Read More