How New Refrigerant Regulations in 2025 Will Affect Prices
For commercial or residential customers who need to replace their HVAC unit, two significant changes in refrigerant regulations are happening that will result in up to a 30% increase in prices in 2025.
Here is what you can expect in the coming months – and how Barineau Heating and Air-Conditioning can help you make the best decision for you and your home.
New Refrigerant Regulations Effective January 1, 2025
The U.S. Department of Energy is requiring manufacturers to use a new, more environmentally friendly refrigerant that has less of an impact on the environment when leaking or disposed. These changes are part of ongoing updates to make cooling systems safer for the atmosphere by switching to options which have a lower environmental impact.
Federal law mandates that all manufacturers begin using the new refrigerant beginning January 1, 2025. In addition, this mandate requires manufacturers install a leak dissipation censor for all new units. These censors will shut down the unit if a refrigerant leak is detected. The additional technology will be a contributing factor in increasing equipment and installation costs.
Should I Consider Purchasing a New HVAC Unit?
If your HVAC unit is less than 10 years old, our recommendation is to continue with regular scheduled maintenance of that unit. Refrigerant does not need to be refilled in units that are operating as they should. If your unit is more than 10 years old or needs constant repair, we recommend you consider replacing your HVAC system now. Most HVAC manufacturers are continuing to produce units at the existing prices until the mandate is required.
After January 1, 2025, manufacturers will be required to produce units with the new refrigerant and censors. This will cause prices for new HVAC systems to increase as soon as their stock from 2024 is depleted. The timing of these price increases is uncertain because it will depend on how long the existing inventory of units manufactured in 2024 will last.
We anticipate the price increases to be in effect by the spring of 2025.
Is it Better for Me to Wait?
In short, no, it is not better to wait. There are two reasons why:
- While the new mandated refrigerant required for new units has a lower Global Warming Potential (GWP) that makes it more environmentally friendly, new units will have the same efficiency and energy ratings.
- If you do wait to replace your unit, you should anticipate up to a 30% increase in costs for new units.
How to Prepare for this Change
If you know you need to replace your HVAC unit, but are unsure about when to make a decision, we encourage you to schedule a consultation to explore your options now so you can choose the system that is right for your home or business. You will also be able to explore financing options and rebates to help you plan ahead and make an informed decision about when to replace your unit.
A Team You Can Count On
The team at Barineau Heating and Air Conditioning is ready to help you navigate these changes and give you the information you need to plan for an upgrade before the price increases start. Our qualified technicians are knowledgeable about the new installation requirements and safety measures for the specific equipment that will be installed in homes. They are here to help you to make the best decisions and provide customers with the latest information regarding new refrigerant regulations.
Contact us or schedule an appointment online for a free consultation to explore your options.
