How Much Can You Save with a New Air Conditioning Unit?

Air conditioning is one of the huge energy consumers in residential homes, so optimizing its performance is one way to help lower energy bills. Newer air conditioners feature SEER ratings that measure their energy efficiency.

Find your existing air conditioner’s SEER rating on its label and enter it into an air conditioning ROI calculator to calculate estimated annual savings. Input local energy cost per kilowatt hour as well for best results.

To determine potential annual savings and compare average installation prices in Phoenix, contact Diamondback Plumbing – click here to access their site.

1. SEER rating


A SEER rating calculates the energy efficiency of your air conditioning unit. It indicates the ratio between its cooling output in BTUs per hour versus how much electricity it consumes (measured in watts). The higher its SEER rating is, the more efficient its operation will be.

Government regulation mandates minimum SEER ratings for air conditioners; higher SEER ratings may save more energy costs over time. When selecting an AC unit, it is essential to carefully balance upfront costs against long-term savings when making your choice.

Your home’s ductwork, insulation and other factors will affect how well your new AC system performs, even with an excellent SEER rating.

An AC unit with an excessive Seasonal Energy Efficiency Ratio (SEER) uses less electricity for cooling purposes, saving you up to 20% to 40% in energy costs.

Less fossil fuel is used to generate power via more efficient systems, reducing greenhouse gas emissions and straining local grids. Furthermore, newer high SEER units feature safer refrigerants that do not deplete ozone layers.

2. Energy efficiency

Families struggling to reduce energy costs are constantly looking for ways to cut expenses, including switching out outdated air conditioning units with energy-efficient ones. One effective strategy is swapping out old models for energy-saving models.

Air conditioning consumes a substantial portion of the home’s electricity and is a main contributor to monthly utility bills. Upgrading to an AC unit that has a higher SEER rating could significantly decrease energy usage.

An effective way to calculate how much a new air conditioning unit could save you is to compare your current annual cooling costs with those projected from installing one with a similar size and SEER rating – these comparisons will yield significant savings that, depending on electricity rates, could pay back its cost within years.

Hiring a professional energy auditor is highly recommended to clarify your annual cooling costs. They will identify air leaks, recommend insulation measures and suggest other energy-saving strategies to lower energy usage.

They can also assess your current air conditioner to provide estimates of savings from upgrading to one with higher SEER ratings; additionally, many new AC systems now come equipped with smart features allowing users to schedule the air conditioning turn on/off times according to when it would best serve the home.

3. Installation cost


Installing a new AC unit will undoubtedly lower energy costs, but how much? That depends on where your home is, labor expenses, and whether ductwork needs replacing.

Utilizing an online calculator, you can determine your potential annual energy savings. Enter the two-digit SEER rating from your current unit into the calculator. Then, enter the expected SEER rating of your new AC and the local energy costs measured in cents per kilowatt hour.

Then, simply add in how many hours your new AC will run each year before entering its operating hours to get an estimate for annual savings.

Upgrading to a variable-speed AC system with smart features could save you up to 20% on energy bills over time as compared to fixed-speed systems if you want to further lower your energy expenses.

Plus, rebates or incentives from your utility company or state energy agency may apply when installing such high-efficiency units.

4. Life expectancy

Air conditioners are significant investments, and you want them to last as long as possible. Luckily, modern models are engineered with longevity in mind.

When considering lifespan issues for an air conditioning system, many factors come into play, from the quality of installation and regular maintenance through climate conditions, comfort preferences, and how well cared for equipment is.

Newer systems tend to be more environmentally safe as older systems use Freon as refrigerant, which has been found harmful to our ozone layer but has since been phased out by the Environmental Protection Agency; newer air conditioners use Puron instead – another more eco-friendly refrigerant.

Careful consideration will give you the highest return on your air conditioning investment by increasing its lifespan. A regular maintenance check-up, routine coil and fan cleaning, washing of the outside unit to remove dirt, blowing away any debris and clearing away vegetation that obstructs airflow are all ways you can ensure your new AC will live a long and fruitful life.

About Nina Smith