How Updating Your HVAC Could Save You 20% or More
Key takeaways:
• New AC units and heat pumps with higher SEER2 efficiency ratings can save you money on cooling costs.
• New heat pumps with a higher HSPF2 rating and furnaces with a higher AFUE rating can save you money on heating costs.
• Your actual savings will depend on the age and efficiency of the system you are replacing compared to the efficiency of the new system, local energy costs, and more.
By Anne Fonda
According to the Department of Energy (DOE), heating and cooling costs account for an average of 30-50% (or more!) of the average American homeowner’s energy bills. If you have an older and inefficient system, and live in an especially hot or cold climate, your heating and cooling costs may take an even bigger bite out of your budget.
The good news is that the DOE also estimates that upgrading your HVAC system to a more energy-efficient system can save you anywhere from 20-50% on your energy bills when combined with duct sealing and weatherization efforts.
Take a closer look at cost-effective strategies and the benefits of modernizing your heating and cooling system for greater efficiency and comfort.
The cost of an outdated HVAC system
Older HVAC systems can cost you more in energy bills because they are less efficient. Builder-grade systems were never the most efficient units to begin with. Plus, over time, wear and tear can cause your HVAC system to lose its ability to operate optimally. It may have to work harder to maintain your desired indoor temperature, leading to increased energy consumption.
Older systems are also more prone to needing expensive repairs or breaking down altogether.
When to upgrade your HVAC system
If your air conditioning system is 15+ years old, it has met its life expectancy. The same goes for a 20+ year old furnace. But is old age a reason to replace your system? Not necessarily. If the system is still working well, you may be able to get another few years out of it, even if it’s not as efficient as a new system
However, if you’re facing more frequent repairs that are becoming more costly, you should start doing your homework and exploring all there is to know about HVAC replacement. You’re in control if you replace your system before it dies.
If you wait until it dies, you may be at the mercy of what’s available in inventory and face higher installation costs if it’s the middle of summer. You may also face high-pressure sales and end up with a less-than-optimal system.
“My advice to anyone who may have an aging system that requires frequent repairs is to consider replacing the whole system versus just one component. Typically, with an older system, the technology has become obsolete, and new parts are not completely compatible with older systems.”
-Kimberly Sexton, Senior Systems Engineer, Trane Technologies
Visit our HVAC Replacement Resource Guide for more information.
Benefits of upgrading your HVAC system
Now that we understand the financial implications of an outdated HVAC system, let's explore the numerous benefits of upgrading to a more modern and efficient unit.
Increased energy efficiency = lower energy consumption = lower utility bills
One of the most significant advantages of upgrading your HVAC system is the boost in energy efficiency. Modern systems are designed with cutting-edge technology that allows them to operate at peak performance while consuming less energy.
When your HVAC system runs more efficiently, it doesn't have to work as hard to maintain your desired indoor temperature. This results in reduced wear and tear, extending the lifespan of your equipment and reducing the frequency of costly repairs.
Enhanced comfort
Upgrading your HVAC system can also lead to a significant improvement in comfort within your home. Modern systems provide more precise temperature control, which means no more hot or cold spots in different areas of your home. They can also maintain consistent humidity levels, creating a more comfortable indoor environment year-round.
“The number of speeds or stages typically translates to energy efficiency and better comfort… so the more variability or number of speeds, the more efficient the equipment will operate and the better temperature and humidity control the system can deliver to your home.”
– Mark Woodruff, Senior Product Manager, Air Conditioners
So, replacing a single-stage or two-stage air conditioner or heat pump with a multi-speed or variable speed system can increase comfort while decreasing energy usage.
Reduced carbon footprint
Environmental concerns are at the forefront of many homeowners' minds. Upgrading your HVAC system can significantly reduce your carbon footprint. More efficient gas furnaces utilize a greater percentage of the fuel for heating, and the increased energy efficiency of air conditioners and heat pumps lowers your environmental impact if your utility company still uses coal-fired power plants, for example.
By reducing your energy consumption, you're not only saving money but also contributing to a more sustainable future. This is a win-win situation for both your wallet and the planet.
Improved indoor air quality
Your HVAC system does more than just regulate temperature; it also plays a crucial role in indoor air quality (IAQ). Older systems may struggle to control humidity, which can cause mold growth and allergens to multiply in high humidity, and cause dry skin and respiratory symptoms with low humidity.
Newer HVAC systems come equipped with advanced technologies to help ensure a healthy home. There are also compatible options, including whole-home air cleaners, energy-recovery ventilators, humidifiers, and dehumidifiers, that can help improve indoor air quality.
Cost-effective strategies for upgrading your HVAC system
Upgrading your HVAC system is a financial investment with an upfront cost that may be intimidating for many homeowners. However, there are cost-effective strategies for upgrading your HVAC system without breaking the bank. Follow these tips to get the biggest bang for your buck.
#1: Get 3 quotes
While we hope you choose to go with a Trane system, we advise any homeowner who is replacing their HVAC system to get multiple quotes. Get recommendations from friends and family on who to consider (and who to avoid). Read reviews and select 3 HVAC companies in your area.
When a representative comes to your home, they should listen to your issues with your current system, perform a load calculation, assess your ductwork, and more, before providing you with recommendations.
#2: Ensure professional installation
After you compare quotes, you need to decide who to hire. While HVAC replacement cost is a big factor, it shouldn’t be the only factor. Think about who has been in business the longest, and who listened to you and communicated the best. If one quote seems to be a lowball offer, what did they leave out?
The HVAC company you hire can turn into a partner for the life of your system. Proper installation is crucial for maximizing the efficiency and performance of your system. A poorly installed system can result in energy waste and a shortened lifespan.
Read our tips on how to choose the right HVAC company.
#3: Take advantage of energy rebates and incentives
Many HVAC manufacturers, local governments, and utility companies offer energy rebates and incentives for upgrading to energy-efficient HVAC systems. These incentives can help offset the upgrade's initial cost.
This can be especially true for a new heat pump system, depending on whether your state has a heat pump rebate program. Be sure to check with your local authorities and utility providers to see if you qualify for any such programs.
#4: Explore HVAC financing options
Few people have the cash on hand to pay for a new HVAC system. And it might not be a wise decision to pay with cash anyway, if it eliminates your emergency fund. If the upfront cost of upgrading your HVAC system is a concern, consider exploring financing options.
Many HVAC companies offer financing plans that allow you to pay for the upgrade with monthly payments. This can make the investment more manageable and allow you to start enjoying the benefits of a modern system right away.
#5: Get the most energy-efficient HVAC system you can afford
Energy costs are unlikely to go down any time soon and are much more likely to keep increasing. So, installing an energy-efficient HVAC system today can save you money on your energy bills for years to come. When upgrading your HVAC system, focus on energy-efficient, ENERGY STAR-qualified units, where applicable. Not only can energy-efficient units save you money on heating and cooling costs, but they also offer more precise temperature and humidity control.
Look for systems with:
- A high SEER (Seasonal Energy Efficiency Ratio) rating for air conditioners and heat pumps
- A high HSPF2 (Heating Seasonal Performance Factor) rating for heat pumps
- A high AFUE (Annual Fuel Utilization Efficiency) for furnaces
These ratings indicate how efficiently the system uses energy. Investing in a high-efficiency unit will cost more upfront but can lead to significant long-term savings. Your exact savings will depend on the efficiency of the system you are replacing vs the efficiency of your new system, your climate, your heating and cooling habits, local utility rates, and more.
Here’s what a few satisfied Trane customers have to say about savings:
Contact your local Trane dealer today
Upgrading your HVAC system is a smart investment that can save your household 20% or more on monthly utility bills, as well as provide numerous other benefits such as reduced carbon footprint, improved indoor air quality, and enhanced comfort. By following cost-effective strategies, you can make this upgrade more affordable and accessible.
Trane has a variety of air conditioners, heat pumps, and furnaces to suit your needs and your budget.
Anne Fonda, Content Writer
A Content Writer with Trane Technologies, Anne Fonda researches topics and writes for Trane® and associated residential HVAC brands. She works in collaboration with Trane Technologies subject matter experts, offering easy-to-understand, informative content on complex topics. Her goal is to help consumers make informed decisions on the products and services they need.
She has written for HVAC and other service provider websites for over 16 years. Before transitioning to web content writing, Anne had a 14-year stint as an award-winning journalist. She graduated cum laude from the University of Missouri-Columbia School of Journalism.
When she’s not working, Anne enjoys playing word games, reading, gardening, spending time with family, and visiting gardens and museums.
Expert review by Mark Woodruff, Senior Product Manager, Ducted Air Conditioners
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