13 SEER Standard Notice - Important - Please Read

Effective January 23,2006

New Manufacturing Requirements - Affects Everyone

As you know, the current SEER standard is set at 10 SEER, and has been since it was initially set in 1992. For the past few years, DOE has conducted rulemaking procedures to determine new, more rigorous minimum standards for the industry to meet.

The Department of Energy's standard for air conditioners and heat pumps will be raised to a minimum of 13 SEER (seasonal energy efficiency rating), effective January 23, 2006 for all manufactures. This means that equipment less than 13 SEER cannot be manufactured after that date. For homeowners and installers, this new mandate is going to do much more than require an approximate 30% increase in equipment efficiency over today's current minimum standard. The 13 SEER requirements are going to require spacial considerations, generate service and installation issues, and create moisture control implications.

The elimination of 10 and 12 SEER offerings that currently account for 84% of retail HVAC sales means a major shift in the market since the dominant consumer choice must change. If you have a system that the indoor or outdoor unit fails, you will now need to replace the complete system and just not one piece or the other with the newer higher SEER rated equipment.

As we sell out of available stock on our 10 and 12 SEER equipment you will see the following symbol - in our pricing charts. Due to current stock depletion at the factories and the change over to the new federal 13 SEER minimum standard, some items will no longer be available. Should we receive additional truckloads of equipment in we will re-active pricing for those particular items until they are gone. This inventory is checked daily and availability adjusted on our site.

Why is this the right thing to do? Using higher efficiency units saves you more money on monthly electricity bills, and reduces harmful pollutants in the environment. Conserving energy is important, especially during an energy crisis.

What is the difference in energy efficiency? The 13 SEER unit is 8% more efficient than a 12 SEER unit and 30% more efficient than a 10 SEER unit, which has been the current minimum since 1992.

What Does SEER Mean?

SEER stands for Seasonal Energy Efficiency Ratio. The higher the SEER rating, the more energy efficient the equipment is. A higher SEER can result in lower energy costs. SEER ratings for HVAC equipment are tested and certified by the American Refrigeration Institute (ARI). All manufactures send their equipment to ARI labs for testing and certification prior to their ability to sell equipment. The U.S. Department of Energy (DOE) required each major piece of equipment to carry a yellow energy rating tag so the consumer can verify the ratings. The SEER rating is a rating of the whole system and not of any one part of the configuration.

A “Bigger 13 SEER Picture” Happening Quietly in the Background

•Manufacturers are changing tooling now.

•Distributors are getting the last batches of 10 and 12 SEERS now.

•News about this change is strong now, but nothing compared to the tidal wave when it hits the public.

•New home construction projects are being changed now. (In fact, one of my close friends is building a house, and his HVAC plans had to be revised after we accepted the initial bid just 2 months ago. His cost went up $1,700.)

Homeowner Price Concerns

Will all homeowners benefit financially from the new efficiency standards? Probably not. People who live in northern climates who operate there units less will not realize a great annual savings due to this change. People in southern climates such as Florida, Texas, Arizona and Southern California will see reduced electrical bills that will offset the initial equipment price over time. Obviously, air conditioners with a 13 SEER are manufactured and sold today. So are 14's, 15's and 16's. We like those products. They are more expensive - and for good reason. They cost a lot more to make. Yet they are made and sold today to the fortunate few who can afford them and to those who believe they will recoup the added cost through energy savings. Seventy five percent (75%) of consumers purchasing a 15 SEER or higher will incur a net cost. In other words, at the end of the lifetime of the product, the savings in operating cost will not be sufficient to offset the incremental first cost of the product. If you are looking to replace your existing older outdoor condensing unit or indoor air handler separately and are not interested in increasing your current efficiency, please move forward quickly in order to obtain your equipment before supplies run out. Smarterway will continue to sell until supplies are depleted.

Price Decreases Coming - Not at All.

Some people have asked if we expect a price decrease or "Fire-Sale" on existing 10 and 12 SEER inventories. We do not see this happening at all due to the fact of the large number if builders nationwide that are now scrambling to obtain the lower cost equipment to fulfill their contract obligations that are running through the next few quarters. Since the new entry level will be 13 SEER, initial equipment cost for new construction and change outs will increase once the current 10 and 12 SEER units are sold.

Space Considerations

The 13 SEER standard will dramatically increase the size of the indoor coil unit and the outdoor condensing unit, which will have a big impact on the existing HVACR applications. It's likely that the inlet opening for the new coil boxes and air handlers will be larger than an existing furnace or air handling opening. In a situation like this, either the air handler will need to be replaced, or proper sheet metal or duckboard transitions will be needed between the existing air handler and the new coil unit for split air handler installations. Both of these options will add costs to the job. Yet, in some cases, it's possible that there will be inadequate space for larger equipment or to permit proper, smooth duct transitions. Also, attic mounted horizontal air handler installations that require future change outs may cause issues fitting the air handlers through existing scuttle holes or between trusses. Closet mounted vertical air handlers in existing houses and especially condominiums will face major challenges.

As a partial solution, today, we are encouraging customers who have old equipment in "space constrained" applications to move ahead and replace that equipment before 2006, rather than simply fix-and-patch for another year of service. At the very minimum, we are letting you know of the implications for your residence and equipment. Smarterway will continue to sell existing 10 and 12 SEER equipment as it is available from the manufactures. We have already run into some issues with 12 SEER availability as manufactures begin to run out of materials for the soon to be discontinued equipment.

Sophistication

Achieving higher SEERs by adding enhanced controls or more sophisticated components (i.e., dual-speed compressors, variable speed blowers, integrated interface boards, etc.) will make these systems even more difficult for the technician to install, diagnose and service.

Moisture Control Implications

The Dept. of Energy mandate is going to do more than just dictate the equipment selection available to homeowners and contractors. There are also moisture issues that need to be considered. To achieve these higher SEERs, equipment manufacturers will employ a number of different options, many of them likely in combination with each other.

These options include:

Coil Changes - Raising efficiency is simply a matter of making the heat exchangers larger. However, OEMs consciously seek to minimize the footprint and volume requirements of its equipment. Hence, 13-SEER heat exchangers will pack in more copper and aluminum-more fins in tighter rows. This means it can become more difficult for the condensate to easily fall into the pan. With constant fan operation, during compressor cycling the water condensed on the evaporator coil is just as likely to be re-evaporated into the air stream.

Control strategies - Time delay relays on the fans, higher evaporator temperatures, etc. are likely to be employed to tweak out a bit more SEER. Again, moisture removal may suffer.

In reaching higher SEERs, installer and homeowners must be sure that the selected equipment has adequate latent and sensible capabilities for full-load and part-load operation.

How Much will I Save in My Cooling Costs?

SEER	Approximate Annual Cooling Costs
6.0	$240	$384	$576	$816	$1,152
8.0	$180	$288	$432	$612	$864
10.0	$144	$230	$346	$490	$691
11.0	$131	$209	$314	$445	$628
12.0	$120	$192	$288	$408	$576
13.0	$111	$177	$266	$377	$532

 

Information in this chart is base on the average 3 ton air conditioner with an average electricity rate of $.08 per kilowatt. The above calculations are approximations; a more thorough analysis should be done by your installer.

To use this chart:
Use the map above to locate the zone where you live
Determine the SEER of your current air conditioner.

Typically:
> 10 years old = 6.0 SEER
5 - 10 years old = 8.0 SEER
< 5 years old = 10.0 SEER

Using the chart, cross reference your current SEER with your color to determine your approximate annual cooling cost
Compare your annual cooling cost to that of a new system with higher SEER

The difference of these two numbers is your estimated annual cost savings.

In Closing...

We are on the brink of some very important changes to the industry. For contractors and homeowners alike, it is those that are better and more prepared for these changing times who will truly benefit from the advantages of the higher efficiency mandate. So in closing, get ready. Start your learning process now and ask all the questions that you can. Please remember that once our stock of 10 and 12 SEER units are gone, they are gone. Please plan ahead.

Smarterway takes your business very seriously, this is why we want you to be well informed on the changes in the industry and welcome any questions you may have. Please give us a call toll-free 1-866-351-2665 if you have additional questions on this new change to our industry.

Price...Selection...Convenience - That's Smarterway