During the decade between 1990 and 2000 energy bills for consumers were reduced by nearly 50 billion dollars, thanks to the new appliance efficiency guidelines. The reduction of carbon emissions due to fossil fuel consumption dropped nearly twp percentage points. Although the cost of the equipment has increased slightly due to the higher standards, the savings in energy is more than three times the increase in cost.



By the year 2000 the higher standards had reduced the generating needs during peak hours by nearly 21K megawatts. As older appliances are replaced by newer ones with higher energy efficiency standards, the savings will continue to improve. An example of energy savings is in the efficiency ratings of central air conditioning units. Central air systems are assigned a rating of their efficiency known as the 'seasonal energy efficiency ratio' or SEER. The SEER of a unit is the cooling output in British thermal units provided throughout the annual usage period divided by the input of energy registered in watt-hours during the period.

In 1987, Congress set the air conditioner efficiency standard from SEER 10. The standard was increased seven years later to SEER 13, or approximately a 30 percent improvement in the standard for energy efficiency. The new standard was to be implemented by January 2006.

The SEER 13 energy efficiency standard will have some significant effects on consumers both in the energy cost and in the logistics of purchasing and installing a new central air conditioning unit. The energy savings is a given, amounting to thousands of megawatt hours each year. Although the cost of the units with the improved energy efficiency standards implement is an increase of up to eight percent over cost of equipment currently, the initial outlay is offset by lower utility bills over a forty month period. Specifically, the cost of a SEER 13 unit over the SEER 10 unit is about $171. Estimated savings of $48 annually in utility costs means the unit pays for itself in about three and a half years. The expected life of the central air conditioning unit is 18 years. If energy prices increase, as is expected, the pay-back period will be even shorter.

Although significant discussion has occurred regarding the drawbacks of going to an SEER 13 system in the home, looking at the facts reveals that few of the arguments against actually stand up to scrutiny. For example, the size of a SEER 13 system is somewhat larger, leading opponents to say consumers will not purchase a new system because it would be difficult to install in existing space. The fact is, the new systems will come in all sizes, just as older systems do and the actual size differential will depend on the manufacturer's measures taken to meet the SEER 13 standards.

Another concern put forth by opponents of the new standards is that the increased cost of the unit is excessively burdensome to poor families. Since the cost of a central air conditioning unit ranges from $2000 to $5000, the expected increase in price of $171 is not expected to make a significant difference in the ability to purchase the units. Realistically, such units are placed in rental housing and so the renter doesn't bear the cost of the unit, at least not directly. The renter does, however realize the savings in energy bills.

Currently, SEER 13 central air conditioning units are not the highest ranking units on the market. You can find SEER 16, 17 and 18 units at the high end of the quality and price market. As the SEER 10 and below are phased out due to obsolescence or deterioration, the energy savings due to more efficient appliances will increase. Since the cost of energy continues to increase, finding ways to stabilize the over all consumption of energy becomes ever more critical.

One impact that SEER 13 has or will have in the future is the effect that changing air conditioning unit product lines significantly will mean that inventory stocks may dip for a while, making it more difficult to order and install a new unit quickly. Dealers may have to reduce prices on the existing units in inventory in order to replace the obsolete units with new SEER 13 models and a slightly higher price. Even a few dollars can make a significant difference in the cash flow for a merchant. They may have longer wait times once a new unit is ordered by the customer before it can be delivered and ready for installation. Customers sometimes are unwilling or unable to wait for a unit.