As an HVAC contractor, there is no shortage of factors that you must consider before installing a unit in a property. Starting on January 1, 2023, updated SEER2 regulations can be added to the list. The Seasonal Energy Efficiency Ratio (SEER) 2 standards will have a direct effect on the way that air conditioning units are manufactured and impact compliance for how units are installed. Keep reading for a detailed look at how the new SEER2 regulations will affect contractors in the Southeast.
What Are the New SEER2 Regulations?
The new SEER2 regulations set the guidelines for more stringent energy efficiency in HVAC units. The following breaks down the new minimum efficiencies in the Southeast region by both the old SEER rating as well as the new SEER2 rating:
The regulations indicate that a minimum SEER2 rating of 14.3 must be obtained for all residential central air systems below 45,000 BTU. The same 14.3 rating is also required of all heat pumps. Systems that do not meet or exceed these requirements cannot be manufactured, sold, or installed beginning on January 1, 2023.
Why the Regulatory Changes?
To help the United States reach its goal of a net-zero economy by 2050, the Department of Energy has taken more stringent measures to ensure the efficiency of heating and cooling units. In addition to energy reductions, a major motivation behind the new SEER2 regulations was to more accurately reflect external conditions when testing systems. By increasing systems’ external static pressure from 0.1 in. of water to 0.5 in. of water, new M1 testing procedures more accurately reflect current field conditions for measuring the energy efficiency of a unit in the face of external static pressures.
How Your Business Can Prepare for SEER2 Compliance
It is critical to understand that noncompliance with SEER2 standards falls on the installer and not the manufacturer. Although most manufacturers have a good grasp on the importance of getting any noncompliant units out of inventory before the end of 2022, the majority of HVAC contractors feel underprepared for January 1, 2023. In order to give your business the chance of avoiding a violation, there are a few measures you can adopt:
• Understand the ins and outs of the new guidelines. Know the new standards and be able to recognize products that do not meet the proper energy thresholds. Below are three resources to help you stay informed:
o Visit www.seer2.com
o Maintain great communication with your Johnstone Supply Representative to ensure that all units being ordered and shipped are in compliance with the new regulations.
o Pick up a “Preparing for 2023” Brochure from your local Johnstone
• Train all of your employees to recognize non-compliant products. As agents of your business, you will be responsible for any installations they make.
• Keep detailed records of all sales for at least 60 months after service, allowing you to prove compliance if necessary.
How Will the SEER2 Regulations Impact My Business?
It can be expected that the new SEER2 regulations will increase costs for both contractors and manufacturers. From a manufacturing perspective: The new more efficient SEER2 units will be larger on average and use more raw materials and more expensive components. Their large size will increase staffing and freight costs for distributors. And for contractors: Whether it be penalties for violations or simply the increased cost of building and installing with higher efficiency products, the cost of doing business is going to increase in 2023. Although it does not have an immediate impact, something to be considered for the future is the Phase down of 410A. In accordance with the AIMs act and the Paris Accord, changes for refrigerants are on the horizon as well. In 2025, 410a is being discontinued in new equipment. The HVAC industry will begin a process of transition to new refrigerant blends, such as R454B & R32, beginning next year leading up to the 2025 discontinuation.
How Will the SEER2 Regulations Impact Clients?
The incurred cost increases or manufacturers, distributors, and contractors will undoubtedly trickle down to the homeowner. So while the industry is currently facing price increases across the board, consumers would do well to plan for further increases beginning in 2023. The Seer2 transitions serves as a great opportunity for those contractors that understand this and are able to convey this message to the homeowner. Reach out to your local Johnstone representative for consumer-facing material surrounding SEER2. By educating the homeowner on the coming changes, there is a good opportunity to accelerate and generate business before the new year. Although service professionals in the Southeast can still work on noncompliant older systems that are already installed, they cannot install the less noncompliant models beginning on January 1, 2023.
The Bottom Line: Preparing for SEER2 in 2023
The new SEER2 regulations set to take effect on January 1, 2023, will require a new SEER2 rating of 14.3 for central air systems below 45,000 BTU and forced air heat pumps. Time will tell if this measure taken by the DOE will significantly reduce carbon emissions over time. What is certain is that these new regulations will create both challenges and opportunities for HVAC contractors and manufacturers in the short-term. By having a thorough understanding of the new standards, educating all employees, and keeping meticulous records, HVAC businesses in the Southeast region can guarantee compliance and put themselves in the best chance for success in 2023 and beyond. Having a battle plan is crucial to thriving during this transition. Like any battle throughout history, once the fight begins, the leaders of both sides must make changes to adjust. Those who are most prepared and adjust the most will win. At Johnstone Supply - The Ware Group, customers are considered valued partners. And as partners, Johnstone works to ensure their customers have the knowledge, tools, and resources to be successful and grow their business. Johnstone Supply - The Ware Group has made a commitment to their customers to be a source of information and has a team dedicated to working diligently with contractors, manufacturers other organizations in the industry to ensure they provide the smoothest possible experience during this transition.
Brian Jeffries is the content director for the Innovative Building Materials blog and a content writer for the building materials industry. He is focused on helping fellow homeowners, contractors, and architects discover materials and methods of construction that save money, improve energy efficiency, and increase property value
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