Introduction
When you pull up your most recent utility bill during either the hottest month of the year (summer) or coldest month of the year (winter), chances are the largest portion of your bill will come from just one area: heating and cooling. For most people, climate control consumes nearly 50% of all the energy used within their homes. Therefore, the device running in your attic, basement, or yard, is going to have a larger impact on your finances than virtually any other item you have purchased.
Homeowners frequently take the increase in their utility costs for granted because they believe the price of electricity and/or fuel continues to rise, so they think there’s no way to prevent or reduce the increases. However, a significant portion of those increases are typically due to the use of an older, less efficient HVAC system. As technology has advanced significantly in the last ten years, modern HVAC systems can provide the same level of comfort at a lower cost than previous models.
In the following paragraphs, I am going to examine the ways that older systems consume too much power; the reason that newer, more efficient equipment saves energy; how the use of smart features and regular maintenance can increase your energy-saving potential; and whether or not purchasing a new system will pay for itself over time. Once you finish reading, you should be able to see clearly why upgrading to a modern HVAC system is one of the best financial decisions you can make to improve both the comfort of your home and your financial well-being.
How Much Energy Does Your Current HVAC System Really Waste?
As a homeowner, you’ll find that your HVAC system will lose efficiency as it gets older. The parts of the system like compressors, motors and coils wear down, and seals start leaking. Although your HVAC system might blow air that feels cool or warm, its efficiency may be significantly lower than what it was when it was first put in place.
Age has a big impact on this. Many of the systems that were put in place over the last 15-20 years had much lower efficiency ratings compared to what is currently available. A system with a SEER rating of 8 or 10 will use more power than a newer one rated at 16 or above, even though both units are producing the exact same volume of cold air. This is also true for furnaces. Older furnaces may only be able to turn about 60-70% of their fuel into useful heat. The remaining portion of the fuel will escape through the flue.
- Your current equipment may be costing you money if you see these common warning signs:
- Your energy bills keep climbing even though your habits have not changed.
- Some rooms are too hot while others stay too cold.
- The system runs constantly, cycling on and off more often than before.
- You hear rattling, grinding, or squealing noises during operation.
- Repair calls are becoming frequent and expensive.
The addition of duct problems creates an additional form of waste. Up to 30% of conditioned air may be lost due to leaks in the ductwork or poor insulation in the ductwork. If you have a damaged duct and your hvac system is blowing air through that damaged duct, then you are basically spending money to either heat or cool your attic, crawl space, or walls. By replacing your old equipment with new equipment and by sealing the ducts, you will address the problem on both ends.
The most basic point is that if you have a system that is older than 10 years then there is a high probability that you are being charged an “unseen” tax on a monthly basis for lost energy.
What Makes a Modern HVAC System So Much More Efficient?
The latest equipment is not simply an upgraded model of the previous design. A number of significant advancements in engineering have combined to reduce energy consumption.
Traditional HVAC systems operate similarly to light switches; they are either fully operational or completely turned off. Each time the system begins operating, there is an excessive amount of electrical current drawn from the main supply. A variable-speed compressor and fan/blower in today’s modern HVAC systems allow for the adjustment of the output level of the system based upon your home’s actual requirements.
On a typical day with moderate temperatures, the system can function quietly and at a much lower capacity than would be required during extreme weather conditions. Therefore, the system uses significantly less electricity. Only when the weather dictates a need for increased performance will the system increase its operating speed. As a result of this consistent operational method, the temperature inside the house remains relatively stable throughout the year.
Today’s air conditioning and heat pump systems are rated at higher SEER2 and HSPF2 levels. New federal regulations have steadily raised the minimum efficiency standards for these products. Also, the majority of today’s new furnaces are rated at 95 percent AFUE, which means that most of each dollar spent on fuel is converted to heat in the home instead of being lost to the outside.
The next generation of heat pump systems. Heat pump system performance has increased significantly. Newer heat pump models designed for colder climates are able to efficiently heat a home even with very low outside temperature. Since heat pump systems transfer heat from one location to another rather than producing heat through either combustion or electrical resistance, they typically use two to three times less energy than they produce. In most homes that have an older furnace/air conditioning unit combination, installing a new high-efficiency heat pump will result in a substantial reduction in yearly energy consumption.
More efficient refrigerants and parts. Newer models are designed with newer refrigerants, better coil designs, and more energy-efficient motors. While some of these changes seem insignificant, when combined, they will create less friction, enhance heat transfer, and decrease the amount of electricity required to complete each cycle.
After making all of these changes to your home, you will most likely find that your heating and cooling expenses decrease anywhere from 20% to 40% after you replace an outdated system. This can add up to significant savings each year for families who spend several thousand dollars each year to maintain comfortable temperatures in their homes.
Can Smart Controls and Proper Maintenance Boost Your Savings Even Further?
Buying energy-efficient equipment can be an excellent way to begin saving money. However, the amount of savings that will be realized from your purchase depends upon how you manage and maintain the equipment.
Smart thermostats can be the most simple upgrade option. They understand what time of day it is (schedule), make adjustments to the temperature based on whether or not someone is present in the home, and allow you to make changes to the temperature setting on your cell phone. Adjusting the thermostat setting back only a couple of degrees each day for 8 hours will reduce the amount of money spent on heating and cooling each year by approximately 10 percent. Also, some smart thermostats provide usage reports which will show you the exact times and reasons that your energy use increases.
Zoning systems also provide a significant benefit. Rather than providing consistent temperature throughout your home, zoning provides you with the ability to target the areas in which you spend most of your time. No one wants to have a guest room cooled down to 70 degrees for 24 hours a day. When you divide your home into zones and each zone has its own control, your HVAC system will cease to waste energy cooling or heating an area that is not being utilized.
Regular maintenance will help protect the money you spend on your equipment. If you neglect even the highest quality equipment, it will eventually lose its effectiveness. A very basic maintenance plan can go a long way to preserving the life of your equipment:
- Replace or clean air filters every one to three months.
- Schedule professional tune-ups once or twice a year.
- Keep outdoor units clear of leaves, debris, and overgrown plants.
- Check refrigerant levels and electrical connections annually.
- Have ducts inspected and sealed when necessary.
A blocked filter alone will require your blower to run at a higher rate of speed and increase energy usage substantially. Professional tune-ups find minor issues with your system before they become major repairs and may also extend the life of your manufacturer’s warranty.
With the right combination of efficient equipment, intelligent controls and regular maintenance, the amount of money you save could far exceed the savings predicted by the rating of your equipment.
Is an HVAC System Upgrade Worth the Upfront Investment?
The ultimate question for homeowners is whether they should invest in a new system. Investing in a new system can be expensive, and therefore homeowners are hesitant to spend thousands of dollars on one. There are some factors that will determine if replacing your current system makes sense; however, for the majority of homeowners who have an older system, replacing it makes financial sense.
Lower monthly utility bills. Perhaps the greatest benefit is the consistent decrease in energy bills. Since modern HVAC systems use significantly less energy, savings will occur each month throughout the duration of the unit’s useful life (typically 15 years or more). Therefore, over a period of many years, the total amount saved can offset a significant part of the cost of buying the unit.
Repair costs will be less. Older equipment is more likely to malfunction when you need it most (i.e. during a hot summer day or a freezing winter night). The cost of emergency repairs, as well as the cost of replacement parts for obsolete equipment, adds up very fast. A new system has a warranty and is much less unpredictable.
Rebates and Incentives. Utility companies, state programs, and federal tax credits offer homeowners a way to save money when installing energy efficient heat pumps, furnaces, and air conditioners. Depending upon your location, these types of savings can lower your initial out of pocket costs by hundreds of dollars, possibly thousands of dollars. Be sure to find out what rebates/incentives are available prior to purchasing, as they vary over time.
Increased Home Value. The age of a heating or cooling system and its efficiency are two things that potential buyers take into consideration when looking at properties. A new, high-efficiency heating or cooling system can be a major selling feature for your home and can make your property more desirable to potential buyers.
: Improved comfort and improved indoor air quality. Modern heating/cooling systems provide superior filtration of the air, greater control of relative humidity, and are significantly quieter when operating. Although there is no direct impact to your monthly energy costs, these benefits will make a positive difference in your everyday routine.
If you have a system that’s been around for over 12 years, has needed a lot of repairs lately, or the repair estimate will cost you as much as half the price of a brand-new system; then in most cases replacing your current system is going to be more cost effective than continuing to patch it up.
Conclusion: Are You Ready to Start Lowering Your Energy Bills?
Energy costs are on the rise and this does not need to become a reality for homeowners. Every day, homeowners are losing money due to an outdated HVAC system that is operating at a low level of efficiency, has leaking ductwork, and is constantly under strain. Replacing an old HVAC system with a new model that utilizes variable speed performance, high efficiency ratings, smart controls, and regular maintenance, with help from Sanitair, will allow you to reduce your heating and cooling costs and provide you with a more comfortable and reliable home.
The most appropriate time to take action is prior to the total failure of your existing system. Taking time to prepare in advance allows you to examine alternative choices, utilize rebate opportunities and select the correct hardware with no pressure from a breakdown situation.
