By 2024, 150 million HVAC units are expected to be sold annually, with a considerable portion of the global supply being aimed at the US. This is because consumers are quickly seeing the advantages of upgrading their older models.
For dwellings without an HVAC unit, it is important to note this is a long-term investment that, when operated and maintained correctly, will pay for itself. There are ways in which an HVAC replacement can save you money.
Reduction in Your Energy Bills
The primary benefit associated with installing a modern HVAC unit at home is the reduction in energy bills. Heating and cooling systems comprise as much as 50% of the average U.S. household’s electricity bill.
The amount that can be achieved in savings ranges depending on the study, but the experts agree households could see as much as a 20% reduction in their monthly energy bills. This averages out at a $1,000 saving every single year.
There are additional financial advantages to installing an HVAC unit at home. Real estate experts say that the modern homebuyer considers an advanced HVAC unit to be a major draw. This can have a big impact on the property’s value.
HVAC systems have changed significantly over the last decade. They are now more energy efficient than ever before. Even homeowners with existing HVAC systems should consider upgrading for this reason alone.
Reduction in Your Future Repair Costs
Energy Star recommends households consider replacing their existing HVAC units every ten years. It is a known fact as HVAC units age they become more prone to breaking down. This can force homeowners to spend thousands of dollars to continuously maintain an older system.
Upgrading to a new HVAC system now ensures a reduction in future repair costs through operating a more modern, advanced unit.
The financial side of ongoing repair costs is only one part of the equation. HVAC systems form such a central part of the average household that a breakdown could lead to the dwelling being left without heating and cooling for days.
This is extremely frustrating, and for landlords this could pose a serious challenge for their businesses.
Always speak to a professional regarding whether it is worth repairing an existing HVAC unit. They may suggest an HVAC replacement which could save you money in the long-term.
Potential Qualification for Tax Deductions or Tax Credits
Both federal and state governments provide incentives for households in the U.S. to become more energy efficient. With climate change is growing in severity, installing a green HVAC unit could come with tax rebates and tax incentives.
Approximately 30% of the overall installation cost of a new HVAC system could be covered as part of a tax rebate. This is a federal rebate and it comes with strict requirements.
To qualify for this tax rebate it is necessary for the HVAC unit to be endorsed by Energy Star. It must also have certain ratings for efficiency to qualify, so older units will not be eligible.
States also have their own incentives to encourage households to become more energy efficient.
Some states do not offer any tax deductions or credits, but many do. These change all the time and they are subject to specific guidelines. There are databases detailing the current incentives within every state. It is also possible to visit the Energy Star website for a full list of the ways in which money can be saved on new HVAC installations.
Finally, utility companies may also offer rebates for households that install energy efficient heating and cooling units. These are not universal, but it is well worth contacting a local utility company to see if they do offer an additional incentive to upgrade.
Install the Correct Type of System
Some homeowners have opted to purchase an HVAC unit and opt for self-installation to save money. Although it is possible to save money in this way it is not recommended.
HVAC installation is complex and may require additional renovation work. Speak to a professional about HVAC installation or replacement and they will perform load calculations and offer recommendations.
First, there are two types of HVAC systems to choose from. Homeowners may select a split system or a packaged unit. It is common to opt for the packaged unit because they are smaller and much cheaper to install.
Split systems are more energy efficient because they have maximum SEER ratings of 25, compared to just 18 for packaged units.
The difference between the two systems is the split system places the various parts of the system in one location, whereas a packaged unit is an exclusively outdoor system.
Select the Correct System Size
HVAC systems work best when they are the correct size. A system that is too large will not dehumidify the air to the extent homeowners expect. If it is too small, the heating/cooling efficiency will be compromised.
The wrong HVAC unit size will not just lessen savings on energy bills but may even increase the average electricity bill.
There are some basic guidelines for finding the correct system size, but these are estimates. A professional HVAC contractor will visit a property and perform detailed load calculations to assess the needs of the property.
As well as size, a contractor will need to take into account the location of a new HVAC system. They must balance the convenience of the installation location where the unit will function best. This is why households should not attempt to install an HVAC unit without professional help.
Seek An HVAC Replacement To Save You Money
HVAC units can be one of the most valuable investments a household can make. Over the lifespan of the average HVAC system, a household can save more than $10,000 on their energy bills.
Do not be tempted to save money by purchasing a cheaper, less efficient unit. Call in the help of the professionals who can make informed recommendations after performing a thorough inspection of your property.
To get started with HVAC replacement, contact us through our website or call Presidential Heating & Air to find out more.