How Much Do Energy Efficient Air Conditioners Save
Nothing compares to the feeling of stepping in from the scorching heat to have the sweat on your brow erased by the cool kissed air of an air-conditioned room. But, as you can imagine, our beloved air conditioners aren’t so good for the great outdoors. In fact, they’re terrible, accounting for 6% of all electricity used in the U.S. and producing almost 13 pounds of CO2 per day.
But let’s be honest, environmentalism, although a noble cause, is often put on the back burner because it doesn’t align with efforts to increase the bottom line. But what if it did? In this guide, we’ll take the time to answer your question: how much do energy-efficient air conditioners save, and is it worth making the switch?
What Is a SEER Rating on AC?
A SEER (Seasonal Energy Efficiency Ratio) rating on ACs describe how much energy the unit needs to consume to cool your home or business. So, the higher the SEER rating, the more energy-efficient the unit.
As time goes on, AC units are getting more efficient at generating that cool indoor breeze, but at the same time, so is the government getting more cognizant of the HVAC system’s impact on the environment–and regulating the industry.
Nowadays, all residential air-conditioning and air-source heat pump systems sold in the United States have to meet a minimum energy efficiency rating of 14 or more in the North and 15 or more in the South, as mandated by the U.S. Department of Energy (DOA).
Average Seer Rating by Year
It might be helpful to see the breakdown of the average SEER rating by year:
Year | Average SEER Rating |
Before 1980 | 6 or less |
1980 to 1985 | 7 or less |
1986-1991 | 8 or less |
1992-2005 | 10-12 |
2006-2014 | 13 or more |
2015 to 2022 | 14 or more |
2023 to present | 14 or more (northern part of the US) 15 or more (southern part of the US |
How Much Do Energy-Efficient Air Conditioners Save?
We now know that all air conditioning systems on the market today will have a SEER rating of 14, 15 or higher and will likely be more energy efficient than your old one. But are energy-efficient ACs worth it? According to the DOA, you could save 20-50% more on cooling energy use by upgrading to a newer model.
The staggering initial replacement cost of a new air conditioner plus the installation fee is enough to make most people hold off until a critical repair, but could upgrading sooner be worth the initial upfront costs? And how long will it take to see those savings in cash? We’ll answer all these questions and more in the sections to come.
Old AC Vs. New AC Power Consumption
We’re going to define an old AC as being 10 years or older or with a 13 SEER rating and a new AC as one with a 14 SEER rating. So let’s do a cost breakdown and answer the question: How much do energy-efficient air conditioners save?
First, we’ll need to know the average cost of electricity and how much a 13 SEER-rated AC vs. a 14 SEER air conditioner uses in one cooling season.
- Average cost of electricity – As of 2023, the national average cost of residential electricity is 23 cents per kilowatt-hour (kWh).
- Seasonal run time – According to the Department of Energy, the average air conditioner will run for 1,000 hours during one cooling season. As air conditioners can be expected to last anywhere from 15-20 years, this will come out to 15,000-20,000 total hours of run time, give or take.
- Energy Consumption – To calculate your AC’s energy consumption, you’ll need to know how many watts your AC uses to operate. You can find this number on the air conditioning unit, in the manual or by typing in the model number online. Most 13 and 14 SEER air conditioners use around 6,300 watts, whereas 14 SEER use around 5,800 watts.
How to Calculate AC Energy Consumption
The formula you need to use to calculate AC energy consumption is Energy Consumption = P x T, where P stands for how much power your AC uses in kilowatts, and T stands for hours of operation.
- Note: These calculations are just approximations, as energy consumption, seasonal run time and cost of electricity are dependent on individual habits, geographic location and air conditioner model.
13 SEER Air Conditioner
For example, a 13 SEER air conditioner uses around 6,300 watts. You would then have to know its seasonal runtime, which the DOA estimates is around 1,000 hours. But before you plug these numbers into the equation, you’ll want to convert watts into kilowatts by dividing by 1,000. 6,300/1,000=6.3kWh.
The equation would look like this: 6.3 x 1,000 = 6,300kWh
The next thing you’ll want to do is multiply the result by the cost of electricity, which is reported to be an average of 23 cents per kilowatt hour.
6,300 x 0.23 = 1,449
What this number tells us is that it will cost an average of $1,449 to run the AC for the cooling season for a 13 SEER air conditioner.
14 SEER Air Conditioner
To figure out how much it’ll cost to run 14 SEER air conditioners, we’ll follow the same steps.
Take the average watts used by a 14 SEER AC, which is 5,800, and divide this by 1,000 to convert watts to kilowatts:
5,800/1000 = 5.8kWh
Next, take the results and multiply them by the average seasonal runtime, which is 1,000 hours:
5.8 x 1000 = 5,800kWh
From there, you’ll want to multiply 5,800kWh by the average cost of energy, which is 23 cents per kilowatt hour, so that it looks like this:
5,800 x 0.23 = 1,334
As you can see, it’ll cost you $1,334 to run a 14 SEER AC for one cooling season with an energy savings of $115 per year compared to a 13 SEER AC. Considering that an air conditioner lasts approximately 15-20 years on average, you can save $1,725-$2,300 throughout its lifetime by switching from a 13 SEER to a 14 SEER air conditioner.
Obviously, if you plan on upgrading your AC, chances are you’re not going to exchange a 13 SEER for a 14 SEER air conditioner. But, it provides a telling example of how much money you can save even jumping up one SEER rating. We’ll delve more into real energy savings in the section below.
How Much Will I Save on a Higher Seer Rating?
10 Seer Vs. 14 Seer Energy Savings
A 10 SEER air conditioner costs about $1,884 to run per year. A 14 SEER AC, on the other hand, costs approximately $1,334. By switching to a more energy-efficient air conditioner, you’d save $550 per year, or $8,250-$11,000 throughout its life. That’s an average savings of 29.18%.
10 Seer Vs. 16 Seer Energy Savings
A 10 SEER air conditioner costs about $1,884 to run per year. Dissimilarly, a 16 SEER air conditioner costs $465.29 per year for a difference of $1,418.71. Over 15-20 years, a 10 SEER air conditioner will cost between $28,260-$37,680 to operate, whereas a 16 SEER air conditioner will fall between $6,844.35-$9,305.80 for a total savings of $21,415.65-$28,374.2, or 75.33%.
13 Seer Vs. 16 Seer Energy Savings
To run a 13 SEER air for one cooling season, you can expect to pay about $1,449. As we’ve already seen, a 16 SEER air conditioner will cost you $465.29. That means you’ll save $983.71 per year for making the switch from a 13 SEER to a more energy-efficient 16 SEER. Over 15-20 years, that would be a total savings of $14,890.65-$19,674.20, or 67.89%.
14 Seer Vs. 16 Seer Price Difference
As calculated above, a 14 SEER air conditioner costs about $1,334 a year. Using the same formula, we know a 16 SEER air conditioner will cost $465.29. That’s a difference of $868.71. Over 15-20 years, you can expect to save $13,166-17,374.20. That’s a 65.12% savings.
15 Seer Vs. 16 Seer Savings
In one cooling season, a 15 SEER air conditioner will cost approximately $502.09. As previously stated, a 16 SEER air conditioner will cost $465.29. That’s a savings of $36.80 every year. Throughout the air conditioner’s life of 15-20 years, you’ll save around $552-$736, or a savings of 7.33%
What is the Most Cost-Effective AC Temperature?
The most cost-effective AC temperature is 78℉, according to the U.S. Department of Energy. But if you’re more comfortable at 72℉, or even a chilly 68℉, and don’t want to sweat through the summer, there are tricks you can implement to cut down on your energy bills without compromising comfort.
Turning the AC Off When You're Not Home
If you don’t have pets or mind waiting a few minutes for the AC to kick in when you get home, turning it off while you’re not there can help protect the environment and your savings account.
Turning the AC Up a Couple of Degrees
Although the energy-saving sweet spot settles at 78℉, the world is not painted black and white. A little change will always be better than no change, so don’t hold yourself to high expectations if you know you’re not going to stick to them. Turning the thermostat up just a degree or two won’t yield a noticeable temperature difference, but it will at the end of the month.
Running the Fan
Turning the overhead fan on can increase airflow and make the space feel cooler, allowing you to comfortably set the thermostat a degree or two higher.
Closing Doors, Windows and Blinds
When the AC is running, shutting doors and windows will help make your unit more energy efficient because it won’t have to work as hard to cool the space. Similarly, keeping the blinds closed during the hottest parts of the day (11:00 a.m. to 3:00 p.m.) will reduce ambient indoor temperatures and prevent the AC from having to cool those sunspots your pets seem to like so much.
Scheduling Regular Maintenance
Believe it or not, scheduling regular AC maintenance can increase its energy efficiency. That’s because HVAC technicians will clean the condenser coils, filters, drain lines, interior and exterior, all things that will make your unit cool more for less.
Programming Your Thermostat
If you don’t want to turn your AC completely off during the day because you have pets, kids or heat-sensitive plants, programming your thermostat to fit your schedule can significantly reduce your energy bills. Set it several degrees higher when you’re not home and even program it to start cooling before returning so you can be blasted by that sweet, sweet AC the moment you step through the doors.
Weather Stripping or Caulking your Windows and Ductwork
Poor insulation accounts for a significant amount of energy loss, meaning money is quite literally flying out the window. Now, reinsulating an entire home or building with more energy-efficient material isn’t something one typically budgets for and is realistically too expensive to do on a whim. Ensuring cold air doesn’t escape through drafty windows on the other hand? Easy and inexpensive.
Waiting to Use Appliances and Electronics
All appliances and electronics use electricity to operate. And what’s a byproduct of electricity? Heat. That means every time you run your dishwasher, dryer, oven, stove top, etc., it’s undoing all of your AC’s hard work.
This doesn’t mean you can’t ever have clean dishes or clothes again. It just means if you want to see a significant increase in your energy savings, you should avoid running these appliances during the hottest parts of the day. Early mornings and evenings and during the night are the most cost-effective times to run nonessential appliances and electronics.