Will New Regulations Help or Harm Heating Costs? - Ballard Plumbing Heating & Air Conditioning

Will New Regulations Help or Harm Heating Costs?

New energy law

With a new law on the way, you can expect to see heating and cooling costs rise. Are you prepared?

The background

This year, two new laws were passed that will pertain to home heating and cooling:

  • Inflation Reduction Act
  • SEER2 Standards

These new pieces of legislation are meant to help the environment and, in the long run, lower energy costs for households by introducing new, more efficient equipment. In the short term, however, the “SEER2” portion of the changes could cost you money. First, we’ll explain the Inflation Reduction Act, and then we’ll explain SEER2!

What is the Inflation Reduction Act?

The Inflation Reduction Act here in California is going to make it easier and cheaper to purchase highly-efficient heating and cooling equipment, such as heat pumps and water heaters. Lower-income and middle-income households will be eligible for rebates from 50% up to 100% off certain super-efficient equipment! This also includes tax credits for solar tech as well. Overall, if you’re interested in re-vamping your home and if you qualify, the Inflation Reduction Act could save you a lot of money.

This will help offset some of the increased costs that you’ll see from the new SEER2 Standards, which go into effect at the start of 2023:


SEER2, which goes into effect next year, will require that new air conditioners have a Seasonal Energy Efficiency Ratio (SEER) of at least 14. The current minimum standard is 13 SEER.

So, while the Inflation Reduction Act will save you money in the long run, the new SEER2 Standards will cause an initial increase in costs. The average price of a new air conditioner will go up by about $2,000, and the most efficient models could cost as much as $6,000 more.

If you’re in the market for a new heating and cooling system, it might be worth it to make the jump now, before the price hike, caused by the manufacturers’ decrease in supply and the need to recoup the cost of the lost inventory.

As always, we recommend that you consult with a licensed AC contractor to see what options are best for your home. If you have any questions about how these new laws will affect you here in the Inland Empire, please don’t hesitate to reach out to us. Contact us online or call us at 909-297-1914.

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