Did you know that homeowners can save as much as 90 percent on their electric bill by switching to a new HVAC system? Of course not, because that’s not true. Maybe if the current system is powered by a horse in a giant hamster wheel. But, homeowners can save a lot. The actual number greatly varies depending on a host of variables. Schnelle Heating & Air is going to walk you through some information on upgrading your HVAC system. Let’s talk about how HVAC replacement can save money and then how much money it can actually save.
How a Replacement Lowers Costs
How Much Energy Will It Save
To know how much a new HVAC system will reduce costs, we have to know how much energy is being used by the existing system and then estimate how much will be used by a new system. The most accurate way is to get your actual usage numbers from your energy companies. That’s due partly because the upcoming figures are based on averages that include other parts of the country and other usage patterns. The figures also do not consider the age and condition of an older system - factors that would almost certainly show a lower efficiency rating.
SEER (Seasonal energy efficiency rating) numbers help us measure the efficiency. Based on a formula that includes the cooling production divided by the energy used during the cooling season, the SEER number predicts efficiency under optimal conditions. 20 years ago the average SEER rating of a system was around 10. A modern 20 SEER air conditioning unit will use around half the energy (the average improvement incorporating all starting SEER ratings is around 20 percent). Since cooling consumes such a high percentage of total usage in much of the country, and considering that prices are likely to increase, the efficiency really matters.
Some of the energy saving technologies like variable speed inverters, ductless or hybrid zoned controls, smart controls, rotary compressors, optimized ductwork design, better materials, and more provide improved efficiency. Now let’s look at how much money those energy reductions can save.
How Much Money Does It Save?
Taking the energy savings and factoring in the cost per kilowatt per hour rate, we can determine the cost savings. There are lots of great calculators out there that will do the math for you. Keep in mind, though, that those are gross estimates. To get analysis specific to a particular home there are better formulas.
Once we find the SEER rating for both the existing HVAC system and the new system, we can estimate cost savings. The questions that matter are “What is the return on investment?” and “Is it worth it to replace the existing system?” To figure the return on investment, calculators provide the easiest results. When you factor in the numbers, you’ll find that upgrading will save you significant money. Then deciding whether it’s worth it to you will be easier. If you find that the total HVAC system installation return on investment is a net zero, meaning the savings will be countered by the cost, there are more improvements to consider. For example, while you’re just breaking even, you’ll have a system that is better for the environment, quieter, more convenient and controllable, and will provide more even temperatures and have fewer repairs.
Replacing an HVAC system is a big deal, but let Schnelle Heating & Air make it less stressful. With our experience and customer care, we will walk you through the process from the beginning questions to post-installation service. Give us a chance to showcase our professionalism and genuine interest in providing you with the best-fitting, high quality HVAC system. Contact us when you’re ready or when you have questions.