Sunday, August 21, 2005

 

2006 mandate to raise central air's efficiency
Initial cost to rise, but bills should fall

By Bill Wolfe
bwolfe@courier-journal.com
The Courier-Journal

When Richard and Doris Kirkpatrick replaced their aging heating and air-conditioning system in April, they were looking for comfort, quiet and reliability.

When the summer season's first power bill arrived in June, the Louisville couple noticed an unexpected bonus: The monthly charge for their 3,500-square-foot all-electric home was just $77 -- $48 less than for the same month last year.

Their latest bill, for mid-June through mid-August, was only 28 cents less than the June-August bill last year.

But this summer has been a scorcher compared to last -- 6 degrees hotter, on average, over the billing period -- and the Kirkpatricks used about two kilowatts less electricity per day during this year's billing period.

How is the couple getting more cool for less cash? Their new air conditioner is 40 percent more efficient than the federal minimum for new cooling systems. "At least initially, it seems the savings will be significant," Richard Kirkpatrick said. Models with even higher efficiency ratings are available.

The Kirkpatricks are a step ahead of a coming federal mandate on new cooling systems.

To save energy, regulators are requiring air-conditioning manufacturers to build more power-thrifty systems next year.

Central air conditioners made after Jan. 23 must meet an energy-efficiency rating -- known as the Seasonal Energy Efficiency Ratio, or SEER -- of at least 13. That's a 30 percent boost over today's minimum rating of 10.

Dealers and manufacturers can continue to sell the lower-rated systems made before Jan. 23 that they have in stock, and the new standard does not affect window air conditioners.

Nationally, new systems rated at 13 will save residential customers 20 percent on their year-round electric bills compared with systems that meet the level 10 efficiency rating, said Wendy Reed, spokeswoman for the Environmental Protection Agency's Energy Star program.

People replacing older systems will save even more. Before 1979, the efficiency rating of central air conditioners ranged from 4.5 to 8.0.

But the lower electric bills will come at a significantly higher initial purchase price.

For example, the air-conditioning portion of a central heating and air-conditioning system for a 2,000-square-foot house might cost about $2,000 if it meets the current minimum standard, said Louisville heating and air-conditioning contractor Greg Nickels. Upgrading to a model with an efficiency rating of 13 "is typically going to run $800 to $1,000 more, depending on the brand," he said.

Other estimates have placed the cost at around one-third more.

Some air-conditioning installers and home builders fear the added cost will hurt business.

"I understand the need or the desire for higher-efficiency units. That end is very good. But on the other hand, every time we raise the price of a house by $1,000, we do knock some people out of the market," said Ellery Esposito, owner of Ellery Esposito Construction and president of the Home Builders Association of Louisville.

Esposito said the government should let consumers decide whether to pay extra for more efficient air conditioners rather than issuing mandates.

Chris Hinkebein, an owner of The DHF Co., a Louisville heating and air-conditioning company, said he has seen interest in higher-efficiency air conditioners climb sharply recently. He thinks that may be because word of the coming standard is spreading.

"I think it's always a good thing when people discuss better efficiency," Hinkebein said. Two years ago, 5 percent of his customers bought systems with an efficiency rating higher than 10, he said. Now, with the exception of builders, about 40 percent buy more efficient models.

Hinkebein said he also gets calls from customers who want to "beat the clock" and avoid higher prices by buying a cooling system before the new mandate takes effect.

Customers must decide for themselves how much they want to spend, he said. But for those who expect to live in their homes for five to seven more years, "I think the money spent on a higher efficiency unit will well be worth it," he said.

The U.S. Department of Energy estimates that on a national average, three-fourths of all consumers buying a typical central air-conditioning system with the higher efficiency rating would either save money or come close to breaking even in the long run through lower electric bills.

The payback for higher initial costs will be slower in Kentucky than in some other states because the climate here is relatively moderate and the electric rates are among the nation's lowest.

Nickels, who owns Automatic Air Corp. on Baxter Avenue, thinks the higher standards will benefit consumers in the long run.

For consumers in Louisville – or anywhere in the nation -- the payback on buying a more efficient system would depend on a long list of factors, such as how heavily they use their air conditioners, how long they keep their homes and what happens to electric rates over the next 10 to 15 years.

According to a cost calculator on the Energy Star Web site, a Louisville homeowner spending $247 annually on electricity for a cooling system with a rating of 10 would save $57 a year with an air conditioner rated at 13.

The savings rise sharply for people who are replacing older equipment with efficiency ratings lower than 10. Switching from a system rated at 6 to a model rated at 13 could lower annual cooling costs from $411 to $190.

Customers who buy even higher efficiency -- some models this fall will be rated as high as 22, Nickels said -- will see savings grow correspondingly.

Nickels, immediate past president of the Greater Louisville chapter of the Air Conditioning Contractors of America, said about 80 percent of his sales already meet or exceed the 2006 standards.

Some customers say they like the more efficient systems because they operate with less noise and deliver more even, consistent cooling. Others pay more for high efficiency for environmental reasons.

"I am very concerned about the energy situation for my country," said Linda Winlock, who moved into an older Highlands home this summer and replaced its air conditioner with a high-efficiency model. "I do believe we are in kind of an energy crisis."

If the air conditioner saves her money, so much the better, Winlock said. "I'm sure I'll appreciate that when my bills come."