Thinking about upgrading your home’s HVAC system? You’ll need to look at the Seasonal Energy Efficiency Ratio (SEER) of different units. Learn more about SEER and why it matters in our guide.

SEER, or Seasonal Energy Efficiency Ratio, measures an HVAC system’s energy efficiency. This rating helps homeowners compare air conditioning units and make informed decisions about their cooling systems. A higher SEER rating indicates a more energy-efficient AC, which can lower energy bills and reduce environmental impact. In this guide, we’ll explore what SEER means, how it’s calculated, and why it matters for your home cooling needs.

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Defining SEER: The Basics of Seasonal Energy Efficiency Ratio

SEER is a standardized rating system that measures the cooling efficiency of AC units and heat pumps. According to the U.S. Department of Energy, SEER is calculated by dividing a system’s cooling output during a typical cooling season by the total electric energy input during the same period. This ratio shows how efficiently an AC unit performs over an entire cooling season rather than at a single point in time.

The SEER rating is handy because it accounts for temperature and humidity variations throughout a cooling season. This comprehensive approach gives homeowners a more accurate representation of how an AC unit will perform in real-world conditions rather than ideal laboratory settings.

SEER ratings assess power draw, cooling effectiveness, and operational efficiency in various scenarios. A higher SEER rating means an AC unit is more efficient at converting electricity into cooling power across different temperatures and humidity levels.

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How SEER Ratings Are Calculated

SEER ratings are calculated using a standardized testing process that simulates various operating conditions an AC might encounter during a typical cooling season. This process ensures that SEER ratings are consistent across different manufacturers and models, enabling fair comparisons between units.

Testing Procedures for SEER

The Air Conditioning, Heating, and Refrigeration Institute (AHRI) oversees the testing procedure known as AHRI Standard 210/240-2024. This standardized test subjects ACs to various controlled conditions that mimic different outdoor temperatures and indoor humidity levels. The test measures and records the unit’s performance in each condition, providing a comprehensive picture of its efficiency across various scenarios.

This testing procedure also assesses how much energy an AC consumes to maintain a specific indoor climate, monitoring factors such as energy draw during compressor operation, refrigerant cycle effectiveness, and the motors’ and fans’ overall performance. The AHRI uses these measurements to calculate the SEER rating, giving consumers a reliable comparison metric for different AC units.

Factors Affecting SEER Calculations

Several factors influence an AC’s SEER rating, including the following:

• Compressor efficiency
• Fan motor efficiency
• Heat exchanger effectiveness
• Refrigerant type
• Unit size and design

These elements work together to determine how efficiently a system can cool a space with the least possible energy. The SEER rating evaluates all AC components and their efficiency ratings when assessing a unit’s performance.

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Benefits of a High SEER Rating

A high SEER rating offers many benefits, from government incentives to a reduced carbon footprint.

Incentives and Rebates

Rebates at the state and national levels may be available for new HVAC models with high SEER ratings. These incentives can make energy-efficient ACs more affordable. 

Energy Star-certified AC units are eligible for a tax credit of up to $600 from January 1, 2023 to December 31, 2032. Split systems must have a SEER rating of at least 16. Check the Energy Star Rebate Finder to discover local rebates and other special offers. 

Lower Energy Bills

A high SEER rating means your AC unit consumes less energy during the cooling season, reducing energy bills. A more efficient system can cool a space more quickly, so you can run it for less time. According to the U.S. Department of Energy, you could save 20–40% on your cooling energy costs by replacing an older system with a high SEER-rated AC. 

More Efficient Moisture Removal

High-efficiency systems are better at removing moisture. Your AC equipment’s cycling frequency affects its ability to remove water from the air. Longer cycles can remove moisture more efficiently. Older systems cool too quickly without removing moisture, which can cause mold growth and problems with indoor air quality. A high SEER rating may be helpful for people with allergies or respiratory conditions.

Reduced Carbon Footprint

Power plants often rely on fossil fuels such as coal or natural gas to generate electricity and produce energy, leading to greenhouse gas emissions. High-efficiency power plants create fewer greenhouse gases and minimize strain on your local power grid. Newer, more efficient plant models also contain safer, ozone-friendly refrigerants.

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SEER vs. Other Efficiency Metrics

While SEER is a widely used AC efficiency metric, it’s not the only one.

SEER vs. SEER2: The New Standard

In 2023, the U.S. Department of Energy introduced SEER2, an updated version of the SEER rating system. SEER2 aims to accurately represent real-world AC performance by considering additional factors such as regional climate data and installation variables. The new standards require a minimum SEER rating of 14 (or 13.4 SEER2) for systems in the northern United States and 15 SEER (or 14.3 SEER2) in the South.

SEER2 introduces a holistic approach to efficiency ratings, evaluating installation quality, local climate considerations, and overall unit performance in everyday settings. This SEER scale refinement helps users identify units that adapt well to specific climates and are installed effectively for maximum operational efficiency.

SEER vs. EER: Key Differences

The Energy Efficiency Ratio (EER) is another measure of AC efficiency, but it differs from SEER in the following ways:

• SEER accounts for system start-ups and stops, while EER measures steady-state operation.
• SEER is typically used for central air conditioning and heat pumps, while EER is often used for window AC units.
• SEER measures seasonal efficiency, while EER measures instantaneous efficiency at a specific temperature.

Both metrics are useful, but SEER provides a more comprehensive picture of efficiency over an entire cooling season. The choice between SEER and EER depends on your specific needs and the unit type you’re considering. SEER encompasses broader performance across variable conditions, making it more reliable for year-round operational evaluations.

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Choosing the Right SEER Rating for Your Home

Consider your budget, local climate, and household needs when selecting the appropriate SEER rating for your home.

Budget and Long-Term Savings

While higher SEER-rated units typically cost more upfront, they can lead to substantial long-term savings on energy bills. If you plan to live in your home for many years, the energy savings from a high-SEER unit could justify the initial investment. Your budget should also incorporate potential government incentives, rebates, and long-term financial savings.

Climate Considerations

Your local climate plays a significant role in determining your AC unit’s ideal SEER rating. A higher SEER rating is more beneficial in regions with long, hot summers as you will use your AC more frequently. Conversely, the energy savings from a high SEER rating might not offset the higher initial cost in milder climates.

When selecting a SEER rating, evaluate average seasonal temperatures and humidity levels. Consider specific cooling demands for your regional climate and opt for a higher SEER rating if you’ll require consistent cooling throughout the year.

Comfort Needs and Household Requirements

Assess your family’s comfort preferences and needs to determine a suitable SEER rating for your home. AC units with higher SEER ratings can maintain more consistent temperatures and humidity levels, which could enhance comfort. Families that prefer specific climate conditions or those with health considerations may find that higher SEER-rated units maximize their comfort.

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SEER Ratings and HVAC System Costs

Let’s examine the relationship between SEER ratings and HVAC system costs so you can make a more informed AC investment.

Initial Investment vs. Long-Term Savings

Higher SEER-rated systems tend to have a higher price tag. However, the potential for long-term energy savings can offset this initial cost. For example, upgrading from a SEER rating of 14 to 16 could noticeably reduce your cooling costs over time, especially in warmer climates where you frequently run your AC.

To decide whether this initial investment is worth it, weigh upfront expenses against potential long-term energy savings, especially if your local climate demands consistent AC use. A detailed cost analysis defines a unit’s financial appeal and longevity.

Rebates and Incentives for High-SEER Systems

Many utility companies and government agencies offer rebates and incentives for installing high-efficiency HVAC systems. For instance, Energy Star-certified AC units with a SEER2 rating of at least 16 are eligible for a 30% federal tax credit of up to $600 from January 1, 2023 to December 31, 2032. This and other incentives can offset an efficient system’s higher initial cost.

Use reliable governmental sources to explore the rebate and incentive programs available to you through local utilities or federal energy efficiency incentives.

If you’re thinking about upgrading your system, take a look at the SEER rating chart below to estimate the average cost of a new HVAC system. Prices may vary significantly depending on the AC unit type, size, brand and model, SEER rating, and BTUs.

SEER Rating	Size	Air Conditioning (BTUs)	Average Price*
14	3.5 ton	42,000	$4,000
15	5 ton	57,000	$4,225
16	3 ton	33,000	$2,700
17	5 ton	54,000	$4,700
18	4 ton	48,000	$6,400

*Average costs of whole-home AC units from The Home Depot.

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SEER Ratings and Environmental Impact

In addition to impacting your energy bills, your AC’s energy efficiency has broader environmental implications.

Energy Conservation

Higher SEER-rated systems consume less energy to provide the same cooling output as lower-rated units. This helps conserve natural resources and decrease the demand on power plants, which often rely on fossil fuels.

This reduced energy need translates to fewer long-term emissions and better resource allocation. Users then benefit from lower utility costs and a reduced carbon footprint.

Refrigerant Types and Environmental Concerns

Modern, high-efficiency AC units often use more ozone-friendly refrigerants than older models, making them more sustainable. These updated refrigerants also use high SEER-rated dovetails to optimize environmental impact, giving homeowners a responsible choice for long-term impact reduction.

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Our Conclusion

The best air conditioner brands on the market have high SEER ratings and are more efficient, minimizing energy bills and environmental strain. Homeowners who buy AC units with high SEER ratings may qualify for energy efficiency rebates or tax credits.

While you can install a new AC yourself, it’s best to request and compare quotes from several professionals. A professional HVAC contractor can help you determine the best AC unit type and size for your home and provide a more accurate estimate that includes labor and other variables.

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FAQ About SEER (Seasonal Energy Efficiency Ratio)

What is the minimum SEER rating for a federal tax credit?

The minimum SEER rating for a $600 federal tax credit is 16 on Energy Star-certified equipment. This credit is effective for products purchased and installed between January 1, 2023 and December 31, 2032.

Why are energy rates always changing?

Energy rates change due to variations in electricity demand, fuel costs, and the availability of generation sources and power plants. Prices are usually highest in summer when the demand for power is higher.

Why is SEER rating important?

A SEER rating is important because it tells you how efficiently your AC unit cools your home. The higher the SEER rating, the less energy used and the lower your energy bill.

Is it worth going from 13 SEER to 16 SEER?

Going from 13 SEER to 16 SEER increases your AC unit’s efficiency, which could translate to a lower utility bill. 

Is SEER 21 worth the money?

A SEER 21 air conditioner is expensive, but it may be worth the money if you live in a hot area year-round.

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