SEER Ratings Guide: What Homeowners Need to Know

You’ve probably seen the term SEER while shopping for a new air conditioner. You might wonder what a SEER number means. Is SEER important? In simple terms, yes. SEER is important because it measures how efficiently an AC system cools your home. Units with higher AC efficiency ratings use less power to cool your home. That saves you money on energy bills.

In this SEER ratings guide, the team at Howe, Inc., will explain SEER ratings, how they help you choose an efficient air conditioner and how the right cooling system saves you money over time.

First, what is a SEER rating? SEER stands for Seasonal Energy Efficiency Ratio. It is a number that measures the total amount of cooling an air conditioner produces over an entire cooling season, divided by the total amount of electricity it uses during that time. Essentially, it compares cooling output to energy use. High SEER ratings indicate that an air conditioner produces more cooling for each energy unit it uses than systems with low SEER ratings. Today’s air conditioners usually have SEER ratings starting in the 13s with the lowest-efficiency units, while the highest-efficiency air conditioners can have SEER ratings of 25 or more. The higher the SEER rating, the more energy efficient the air conditioner.

For many years, SEER was the HVAC industry’s main measurement of cooling system energy efficiency. Now the industry also uses an updated version of SEER called SEER2. Like SEER, the new SEER2 rating is used to measure cooling efficiency.

When comparing SEER vs SEER2, it’s important to know that they measure the same thing. The difference is testing. SEER2 ratings are calculated under stricter federal testing procedures designed to reflect real-world conditions. This means SEER2 ratings give a more realistic picture of how efficient an air conditioner or heat pump actually is when it’s cooling your home.

Some HVAC manufacturers use both ratings, so you may see cooling systems with a SEER rating and a SEER2 rating on the label.

In addition to helping homeowners choose cost-saving cooling systems, SEER ratings also are a way for regulators to raise energy efficiency. Federal HVAC efficiency standards now include minimum SEER requirements for new residential cooling equipment based on climate zones. Along with refrigerant changes, it’s part of an effort to increase energy efficiency in the HVAC industry.

In the northern region that includes Sioux Falls, central air conditioners must be at least a 13.4 SEER2 and heat pumps must be at least a 14.3 SEER2. In the southeast and southwest regions, central AC units and heat pumps both must be at least a 14.3 SEER2.

Yes, higher SEER ratings do mean lower energy bills. However, the difference in savings between SEER levels gets less the higher you go on the scale. While the highest SEER levels still save the most total money in operating costs overall, your percentage of savings is greater between units at the lower end of the ratings. That’s because the percentage in savings tapers off when upgrading from one extremely high SEER rating to another.

For example, upgrading from a 14 SEER air conditioner to 16 SEER AC unit can cut cooling costs by about 13%, while moving from a 16 SEER to 18 SEER saves roughly 11%. A high SEER air conditioner still reduces operating costs the most overall, but the biggest increase in savings comes with the first upgrade.

In Sioux Falls, the cooling season typically runs about four months, from late May through September. Because air conditioners operate fewer months here than in southern climates, total annual savings from higher SEER ratings are more modest. This makes system cost and annual energy savings especially important factors to consider.

Choosing the right SEER rating involves more than picking the highest number. The best SEER rating for a Midwest city like Sioux Falls may be different than for a home in a southern city like Atlanta, Georgia. By considering factors like climate, home size, insulation and budget, you can pick the right SEER rating for your home.

The cooling season in Sioux Falls is shorter than in southern states, but humidity can increase the cooling system workload. The best SEER rating here will balance seasonal demand with gains in energy efficiency, so you can stay comfortable without paying for more energy efficiency than you really need.

Higher-SEER systems cost more upfront but use less power to run. The key to finding the right SEER for you is to the payback period. That’s how many years it takes for energy savings to offset the higher purchase price.

You’ll see the most dramatic increase in energy savings when upgrading from an older, lower SEER air conditioner. For example, replacing an old 10 SEER air conditioner with a 14 SEER2 or 16 SEER2 model can save as much as 30-40 %. Upgrading from a 16 SEER2 to an 18 SEER2 model will also save you money, but the percentage of savings is less.

A high SEER air conditioner costs the least to operate, but also comes with the highest price tag and a longer payback period. For many Sioux Falls homeowners, an air conditioner with a SEER rating in the middle of the ratings range is a better balance of cost and energy savings. Whether a mid-tier or high-end unit is best for you will depend on your usage patterns or if you desire special features that often come with higher-end units.

The condition of your home’s insulation and ductwork is also something to consider. A high-SEER air conditioner won’t produce maximum savings if the cool air it produces escapes through the walls of a poorly insulated home or through breaks in your ductwork.

Howe’s air conditioning services focus on finding the right air conditioner for your home and comfort needs. A big part of that is understanding how air conditioning SEER rating impacts performance and savings, but that’s only part of what we do.

We conduct a thorough in-home load calculation and energy analysis to determine the right cooling system size and efficiency level for you. We’ll provide transparent recommendations from our full lineup of SEER-rated energy efficient air conditioners, so you get the ideal match for your home. To save you the most money possible, we offer preventive AC maintenance and tune-up options to keep your unit running at peak efficiency.

Now is the time to start saving on your cooling costs with Howe’s. Schedule an in-home consultation by calling or texting 605-339-2020!