How To Calculate Energy Savings

Are you considering upgrading your heating and/or cooling systems to cut your energy expenses? It’s recommended to evaluate your equipment if it’s a decade old or more, particularly if you’ve encountered numerous repair problems. But how much energy can you save with a new HVAC system, and is it worth the investment?

Here are some tips to help you calculate the savings, along with a brief overview of some essential terms you should be aware of.

What Kind of Savings Will I Get with New Equipment

If your HVAC equipment is unreliable, underperforming, or approaching the end of its lifespan, your energy bills may be increasing. Over time, outdated technology becomes less efficient and uses more energy to maintain desired temperatures. 

Investing in more energy-efficient equipment can help reduce your energy usage, but it’s important to consider whether the potential savings will outweigh the cost of new equipment. To answer this question, you’ll need accurate projections of the energy savings you could achieve by replacing your current system. The amount you can save will depend on the equipment you choose.  

Before we dive into energy savings projections, let’s review some important terminology and ratings used to compare the energy efficiency of modern HVAC equipment. 

SEER – Measuring Energy Efficiency for Air Conditioners 

The Seasonal Energy Efficiency Rating (SEER) is used to determine the cooling equipment’s energy efficiency. You can easily compare the SEER ratings of different units to determine which one is more efficient. The higher the SEER rating, the more energy-efficient the unit will be, and the less electricity it will consume. 

In the New York region, the U.S. Department of Energy requires all newly installed air conditioning systems to have a minimum SEER rating of 13. The most efficient central air conditioning units available in the market today have SEER ratings ranging from 20 to 28, while the ratings for heat pumps and ductless mini-split systems may be 30 or higher. Older units typically have SEER ratings of less than 10. 

Learn more about SEER ratings HERE.

AFUE – Measuring Energy Efficiency for Heating Systems 

AFUE stands for Annual Fuel Utilization Efficiency, which measures the energy efficiency of heating systems like natural gas, oil, or propane furnaces. Like SEER ratings for air conditioners, AFUE ratings help you compare the energy efficiency of heating systems. The higher the AFUE rating, the better the energy efficiency and the less fuel consumption you can expect. 

In the northern region of the country, the U.S. Department of Energy sets a minimum AFUE of 90% for newly installed heating systems. Many modern high-efficiency gas furnaces have AFUE ratings of up to 98%, indicating their superior energy efficiency and fuel conservation capabilities. With such ratings, homeowners can save money on their heating bills while enjoying a more comfortable and energy-efficient home. 

Calculating Energy Savings for New AC Systems 

You will need the following details to determine HVAC energy efficiency: 

Your Current Air Conditioner’s Capacity – The amount of heat that the device can remove from the air in an hour is measured in BTUs (British Thermal Units). Professionals may also use the term “size” to describe a unit’s capacity, although this has nothing to do with the size of the unit. On the manufacturer’s label of the device, next to the model and serial number, you may locate it. 

Electricity Cost (KWH) – Find out how much you are spending for electricity per kilowatt hour to get a precise estimate. This information can be found on your utility bill. 

Your Current Unit’s SEER Rating – Your appliance’s SEER rating is indicated by a yellow “Energy Guide” sticker that you can find on it. 

SEER Rating of the New Systems You Are Considering – These will be available in sales quotes, on product tags, and on product website pages. 

How To Get the Savings You Expect

To maximize your HVAC energy savings, it’s crucial to have a system that’s properly sized, installed, and routinely maintained. An HVAC system that is too small will not provide adequate heating or cooling, while an oversized system will waste energy and increase your utility bills. Additionally, poorly installed equipment can result in air leaks, which can cause your system to work harder than necessary. Regular maintenance is also key to ensuring your system runs at peak efficiency. 

It’s essential to choose a reliable professional to help you select and install your new equipment. An experienced contractor can assess your needs and recommend the best system for your home or business. They can also ensure that the equipment is installed correctly and in compliance with local codes and regulations. 

In addition to professional installation, routine maintenance is essential to keep your system in good working order. Regular maintenance, such as changing air filters, cleaning coils, and checking refrigerant levels, can help prevent breakdowns and extend the life of your equipment. It’s important to follow the manufacturer’s recommended maintenance schedule and have your system serviced by a qualified technician. With proper installation and maintenance, you can enjoy maximum energy savings and a comfortable indoor environment. 

Just call Budget Heating, Cooling & Plumbing if you would like more information on energy efficiency!  

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