Replacing your air conditioning unit is a major, albeit inevitable, expense. The high cost is why many people try to put off replacing their AC for as long as possible, which can carry some significant risks. For starters, the older your AC is, the greater the chance that it will suddenly give out during the summer.
Another concern is that the costs of repairing older AC systems are quickly increasing, and the cost to install a replacement system is also just going to keep rising. These increasing costs are why upgrading to a new AC system now is a good idea; it can save you a fairly significant amount in the long run compared to if you wait.
Why the Cost of AC Repairs Are Going Up
The year 2025 ushered in a major change in the HVAC industry when the EPA required manufacturers to begin phasing out the use and production of R-410a refrigerant. This refrigerant has been used in virtually all air conditioners since 2010, which is when the EPA began phasing out R-22 or Freon. The R-410a phase-out is good in a way since the two refrigerants that are replacing it are less powerful greenhouse gases and thus less harmful to the planet. Unfortunately, the phase-out is also coming at a cost to consumers.
As part of the phase-out, manufacturers are now required to start reducing the amount of R-410a year by year and will no longer be able to produce it at all starting in 2035. This means there is also a reduction in the available supply, resulting in the price of R-410a already starting to increase. The price is then just going to get higher as the supply further dwindles. Eventually, it may become prohibitively expensive should your existing AC need to be recharged with R-410a. Nonetheless, you will have no choice but to use this refrigerant because the new refrigerants aren’t compatible with old AC systems.
Benefits of Upgrading Your AC
In addition to saving you money on future repairs, an AC replacement can also provide some great benefits in terms of both your finances and your comfort. As far as financial benefits, the main thing to know is that a new AC is almost certainly going to be more energy efficient than your existing system.
This is partially because the EPA increased the federal minimum energy efficiency requirements in 2023. It’s also because the two new refrigerants manufacturers now have to use are more efficient at transferring heat compared to R-410a, allowing AC systems to perform better and use less energy. In most cases, you’ll save close to $100 a year, if not more, by replacing an older AC with a new system. You can also be certain that your new AC won’t have any issues keeping your house sufficiently cool and comfortable, even on the hottest, most humid summer days.
Another great benefit of upgrading your AC is that you will automatically be eligible for up to a $600 federal income tax credit if the new system meets the necessary energy-efficiency requirement. As of now, systems that have an energy-efficiency rating of 17 SEER2 or higher are eligible to earn this credit. However, there’s a high chance that this requirement will increase year by year. You’ll have to pay more to install a higher-efficiency system to earn the credit if you choose to wait.
One other thing to note is that your new AC will come with a manufacturer’s warranty. While this warranty only covers defects and the manufacturer will only pay for the replacement part and not the labor charges, it still has the potential to save you significant money should something go wrong. In most cases, your new AC will be covered under warranty for a full 10 years, as long as you have it serviced annually.
Iceberg HC is a family-owned business offering honest, dependable air conditioning and heating services in Monroe, MI and the surrounding areas. We’ve built up a reputation for performing exceptional work and providing unrivaled customer service. When you need any help with your AC or heating, you can count on us to provide same-day service and upfront pricing. If you’re looking to upgrade your central or ductless AC, we have a range of excellent options that are sure to meet your needs.
To learn more about the benefits of upgrading your AC or to set up a consultation, contact us today.
