How Much Money will I save by Installing a 20 SEER HVAC System?
We get this question quite often. What is the return on investment for an HVAC system? This is hard to narrow down because every home is vastly different. Each home is unique and how you use your home and consume energy can vary greatly even from someone two doors down with similar square footage.
Because of the numerous variables involved there is no quick way to measure and predict exactly how much you might save by upgrading your hvac system to a high efficiency system. HOWEVER, in this post I will take the opportunity to show a real life scenario where a customer has upgraded their hvac system from a 13 SEER system to a 20 SEER Daikin.
Before we dive into the details I’d like to emphasize that the primary reason people purchase 20 SEER equipment is NOT for the utility savings but because these systems often provide a more comfortable indoor environment than single stage or even two stage equipment. Still saving some green on utilities is ALWAYS welcome.
Now with some comparison details. Below are two usage bills for the same home. These show the kWh usage difference between August of 2016 VS August of 2015. The only major change in the home during those comparative periods was the HVAC system. You can see that during 2015 the home consumed 4,841 kWh vs 3,296 kWh in 2016. This is a 31% reduction in electrical consumption.
Before assuming that you’ll save $184/mo like this home owner here are some more details. You might save more OR you might save less.
- There are 2 HVAC systems in the home. We ONLY replaced the upstairs system. (previously a 13 seer) Other system is a 16 SEER 2 stage ruud.
- The 2015 Bill is for 33 days (Aug 2 – Sept 3) VS 29 Days in 2016 (a ~6.4% difference)
- The weather was different in 2015 vs 2016 (see below graph comparing daily temps)
- We kept the old ductwork (but updated afterward in Sept. so the efficiency will be even better now)
- August should be the month where we should see the largest energy savings. (ie before and after costs will be more narrow in spring and fall because in both scenarios the systems need to run less)
- kWh rates are different for these two bills.