Understanding SEER Ratings: What Homeowners Need to Know

As energy costs continue to soar year after year, homeowners are quickly learning to be savvy consumers and are carefully choosing their heating and cooling units to find an optimal balance between comfort and cost. Look no further than the rise of geothermal heat pumps to see this trend in action. More and more consumers are choosing heat pumps to cool and heat their homes, which use up to 80% less energy, last longer, are more environmentally friendly, and—also good for the wallet—have a longer lifespan than other types of units, meaning reduced maintenance costs and a longer time before needing to be replaced.

Whether using a heat pump or a more traditional style of HVAC unit, one of the easiest ways to determine how costly or inexpensive a unit will be is to focus on the efficiency of the model. Certainly, the longevity of a unit, its upfront cost, how often it needs new parts or maintenance, the quality of its parts, and so on have an impact, but think about it this way. The main cost driver after it’s installed will be the energy it costs to run the unit; repairs may have a higher sum than an energy bill, but you’re paying for those energy costs month after month without fail.

Efficiency has often been hard to measure, but for the cooling season (summer and parts of spring and fall), there’s a handy shorthand for quantifying how efficient an HVAC system is and. therefore. how good it is at reducing energy costs: the SEER Rating.

What is the SEER Rating?

SEER—the Seasonal Energy Efficiency Ratio—measures an HVAC unit’s cooling efficiency over an average cooling season by dividing the total cooling output in BTUs by how much energy it consumes in watt-hours. In short, it tells you how much energy an air conditioning unit or heat pump requires to cool your home when working at its maximum efficiency.

Naturally, a better SEER rating indicates to consumers at a glance that a particular unit is more energy-efficient than those with lower ratings. Better ratings mean less energy is required, which leads to lower monthly energy bills and a reduced carbon footprint due to less energy. Just as when you shop for a new car, the miles-per-gallon (MPG) rating indicates more efficient, and thus less costly to run, models (and hey, those also are a good measure of carbon footprint too!).

By following the SEER rating of a unit, homeowners can balance their initial and ongoing costs and calculate long-term savings in a way that makes sense for their budget and still meets their comfort requirements. For those living in areas with variable climates, such as parts of the Midwest that experience both sweltering summers and icy winters, choosing a unit with a high enough SEER rating can make a sizable difference when it comes to both performance and cost savings. 

The Impact on Your Energy Bill

While SEER ratings for traditional HVAC units and heat pumps often top out at roughly 26, that high of a number is uncommon in commercial units. Anything rated 15 and above is considered good efficiency, though it gets better as the unit climbs higher.

Since SEER Ratings are expressed as a ratio, it’s relatively easy to determine how efficient one unit is compared to another, and thus how much more or less energy they require, if you have both of their SEER ratings. A unit with a 16 SEER rating will require roughly one-third the BTUs to cool the same space as one with a 12 SEER rating. (When in doubt, just do the math! 16/12 = 1.33 in our example.) That’s a significant reduction in energy required for the same level of cooling.

Let’s look at what a household could be saving by upgrading from their 14 SEER unit to a higher-efficiency model. If the cooling costs throughout a year for a home total $1,000, how much does the owner stand to save with a more efficient unit? Moving to an 18 SEER unit (18/14 = 1.28) represents a 28% reduction in needed energy—the costs will be $720 annually, saving $280. Similarly, by taking the leap to a 20 SEER unit from the 14, a sizeable 43% efficiency increase could reduce that bill to around $570—closing in on half of the annual energy costs on cooling. (Please do keep in mind that these numbers are estimates and real-world performance will vary due to a number of other variable factors. But it remains that higher SEER ratings are more efficient units!)

Is it Worth Upgrading to a Higher SEER-Rated System?

While upgrading from a lower-SEER system to a higher one represents a sizeable investment (as it always is when you change units!), there’s a reason higher-SEER units have an increased up-front price tag. These HVAC and heat pump units often will come equipped with advanced technology and features, leading to not only higher efficiency but more longevity that will offset the upfront cost over time. Especially for homes with significant cooling demands, the features of high-SEER systems like variable-speed compressors to provide consistency to indoor temperatures will be welcome additions to households.

Additionally, there are financial incentives such as rebates and federal tax credits available for those upgrading to more energy-efficient units. For example, many upgrading to a heat pump will find themselves qualified for the Residential Clean Energy Credit. Make sure to ask our experts about any financial incentives when you’re discussing an upgrade to more efficient cooling units!

Speaking of our experts, proper installation and maintenance is crucial for HVAC units, heat pumps, and the like. Not just for safety reasons (don’t try to install these yourself!) but to make sure that you actually get the benefit of a higher SEER rating; improperly installed units might not perform with the same efficiency as one that is expertly installed. Plus, our maintenance plans will help ensure you receive top-notch service that keeps your unit working to its full potential.

Choosing the right cooling unit to balance your family’s comfort and budget is no small decision. Let our expert team of cooling technicians help you explore your options when it comes to maximizing your energy efficiency and saving on costs down the road: contact us today to set up a consultation!