The U.S. Department of Energy (DOE) first introduced the Seasonal Energy Efficiency Ratio, or SEER, as a standardized way to measure the efficiency of air conditioning units. This was a game-changer for the HVAC industry and for consumers. Before SEER, it was challenging for manufacturers to benchmark their products and even more difficult for homeowners to make a true apples-to-apples comparison between different models. SEER created a universal language for AC efficiency, allowing you to easily see which unit could provide the most cooling for the least amount of electricity.
Of course, as technology evolved and our understanding of real-world energy consumption grew, it became clear that the original SEER testing procedures didn’t fully capture how an air conditioner performs in a typical home. For example, the lab conditions for SEER testing did not take into account the impact of ductwork and the static pressure that central air systems constantly work against. To create a more accurate and representative measure of efficiency, the DOE went back to the drawing board. The result? A new and improved standard: SEER2.
As of January 1, 2023, all new air conditioners manufactured and installed in the United States must be rated according to these updated SEER2 standards. But what is SEER2? How is it different from the old rating? And most importantly, what does it mean for you and your next AC purchase?
Below, we cover everything you need to know about the new SEER2 rating so you can invest in a new air conditioner with confidence.
What Is the SEER2 Rating?
While the goal is the same as the original SEER — to measure the ratio of cooling output over a typical cooling season to the total electric energy consumed — the “2” signifies a crucial update in the testing process.
What Is the Difference Between SEER and SEER2?
The primary difference between SEER and SEER2 standards lies in the testing conditions. The original SEER tests were conducted under laboratory conditions that didn’t fully account for the external static pressure that HVAC systems encounter in real-world installations. Your home’s ductwork, filters, and vents create resistance, forcing the system’s blower motor to work harder to circulate air. This extra work consumes more energy, a factor that wasn’t adequately reflected in the original SEER ratings.
The new SEER2 testing protocol, officially known as M1, mandates a higher static pressure during testing, which is five times higher than the old standard. By forcing the unit to work against this increased resistance, the SEER2 rating provides a much more accurate picture of how the air conditioner will actually perform once it’s installed in your home and connected to your duct system.
Because the new testing is more stringent, the resulting efficiency numbers are slightly different. For example, an AC unit that was rated at 20 SEER under the old system might be rated as 19 SEER2 under the new one. It’s the exact same piece of equipment, but the rating is lower because the test is harder and more accurately depicts the performance you can expect from the unit when it’s in your home.
What Is the Minimum SEER2 Rating?
Along with the new testing procedures, the Department of Energy also updated the minimum efficiency standards for new residential air conditioning systems.
This is where things can get a bit confusing, as the minimum required SEER2 rating depends on where you live.
The DOE has divided the country into three regions based on climate: the North, the Southeast, and the Southwest.
- North Region: In the cooler climates, all new residential air conditioners must have a minimum SEER2 rating of 13.4. This is equivalent to the previous 14.0 SEER standard.
- Southeast and Southwest Regions: For homeowners in the warmer regions, the minimum efficiency requirements are higher, reflecting the greater demand for air conditioning. For most systems in these areas, the minimum rating is 14.3 SEER2 (equivalent to 15.0 SEER).
It’s important to note that these are the minimums for new installations. If you have an existing AC unit that was installed before 2023, you are not required to replace it. However, when the time comes for a new heat pump, ductless mini-split, or central air conditioner, your HVAC contractor must install a unit that meets or exceeds the current minimum SEER2 rating for your specific region. This ensures that the country’s overall energy consumption continues to trend downward and reduces strain on the power grid.
What SEER2 Rating Do You Need for a Tax Credit?
One of the most compelling incentives for homeowners to invest in high-efficiency HVAC systems is the availability of federal tax credits. The Inflation Reduction Act of 2022 extended and expanded these credits, making it more affordable than ever to upgrade your home’s comfort system.
Under the updated Energy Efficient Home Improvement Credit, homeowners can receive a tax credit equal to 30% of the project cost, up to a maximum of $600 for a qualifying air conditioning system. To qualify for this credit, your new central air conditioner must meet or exceed a SEER2 rating of 16.0 or higher.
Always be sure to check the latest requirements and consult with your tax professional before making a final purchase, as the standards for tax credits can change.
How Do SEER2 Ratings Affect AC Costs?
It’s the question on every homeowner’s mind: how will this new rating system impact the price of a new air conditioner? The relationship between SEER2 ratings and cost can be broken down into two parts: the initial purchase price and the long-term operating cost.
Upfront Costs
Generally, there is a direct correlation between efficiency and price. An air conditioner with a higher SEER2 rating contains more advanced technology, such as variable-speed compressors and multi-speed fan motors, which cost more to manufacture. Therefore, you can expect to pay more upfront for an 18.0 SEER2 unit than you would for a 14.3 SEER2 unit.
The new 2023 regulations have also had a modest impact on the price of entry-level equipment. To meet the higher minimum standards, manufacturers have had to re-engineer their base models, which has slightly increased the cost of all new equipment compared to the pre-2023 inventory.
Long-Term Operating Costs
The investment in a higher SEER2 rating truly pays off in the long term. The SEER2 number is a direct measure of how much energy the unit consumes to cool your home. A higher rating means lower energy consumption, which translates directly into lower monthly electricity bills.
Over the 15- to 20-year lifespan of an air conditioner, the cumulative energy savings from a high-efficiency unit can easily outweigh its higher initial purchase price. When you factor in potential tax credits and local utility rebates, the argument for choosing a higher SEER2 rating becomes even more compelling.
Get Your SEER2 Rated Air Conditioner Today
Because choosing the right air conditioner for your home depends on much more than just a single number, it’s beneficial to partner with a trusted, experienced professional. For example, when you partner with H.J. Faust, we will help you find a system that provides the perfect balance of efficiency, comfort, and cost.
Our NATE-certified technicians will perform a thorough assessment of your home, taking into account factors like its size, insulation, window quality, and your family’s comfort preferences, to recommend a system that is perfectly sized and suited for your needs. We’ll also walk you through your options, explain the long-term benefits of different SEER2 ratings, and help you identify any available tax credits or rebates to maximize your investment.
If you’re ready to explore the benefits of a new, high-efficiency SEER2 rated air conditioner, contact H.J. Faust, Inc. today and schedule a consultation for an AC installation in Burlington, WI, or the surrounding area!
Frequently Asked Questions About SEER2 Ratings
SEER2 stands for Seasonal Energy Efficiency Ratio 2. It is the updated federal standard used to measure the energy efficiency of air conditioners and heat pumps.
Like the original SEER rating, SEER2 calculates the ratio of total cooling output over a typical cooling season divided by the total electricity consumed. However, SEER2 uses more rigorous testing conditions that better reflect real-world performance in homes with ductwork and static pressure.
SEER2 standards became mandatory on January 1, 2023. All newly manufactured and installed residential air conditioning systems must now meet SEER2 requirements.
No. If your current system was installed before 2023, you are not required to replace it. SEER2 regulations only apply to newly manufactured and installed equipment.
However, when your existing system reaches the end of its lifespan, your replacement must meet current SEER2 minimum standards for your region.
Yes. SEER2 standards apply to central air conditioners, heat pumps, and many ductless mini-split systems. Heat pumps also have updated heating efficiency ratings (HSPF2) that follow similar testing improvements.
For most homeowners, a SEER2 AC rating between 15.0 and 18.0 provides an excellent balance of efficiency and cost. Higher ratings offer greater energy savings but may come with a higher upfront investment.
A good air conditioner SEER2 rating for a heat pump typically falls between 15.0 and 18.0, depending on your climate and efficiency goals.
Keep in mind that heat pumps also have a heating efficiency rating called HSPF2 (Heating Seasonal Performance Factor 2). If you rely on your heat pump for both heating and cooling, it’s important to consider both SEER2 and HSPF2 ratings.
Ductless mini-split systems are often more efficient than traditional central air systems because they do not lose energy through ductwork. Therefore, a strong SEER2 rating for a ductless mini-split typically starts around 16.0 SEER2, with many high-performance models reaching 20 SEER2 or higher.
In many cases, yes. While higher-efficiency systems cost more initially, they often provide long-term savings through reduced energy consumption. When combined with federal tax credits, utility rebates, and lower monthly operating costs, the overall return on investment can be substantial.
While choosing a high SEER2 rating is important, several other factors significantly impact your air conditioning system’s overall efficiency and performance:
- Proper System Sizing: An oversized or undersized unit will cycle improperly, waste energy, and reduce comfort.
- Ductwork Condition: Leaky or poorly insulated ducts can waste a substantial amount of cooled air.
- Regular Maintenance: Annual professional tune-ups and routine filter changes keep your system operating at peak efficiency.
- Smart Thermostat Upgrades: Programmable or smart thermostats help reduce unnecessary runtime and optimize cooling temperatures.
- Home Insulation and Sealing: Proper insulation and air sealing prevent cool air from escaping and reduce strain on your system.
- Window Quality and Shading: Energy-efficient windows, blinds, and shading solutions help limit heat gain during the summer.
Improving these areas can enhance the performance of any cooling system — even one with a moderate SEER2 rating — and help you maximize both comfort and energy savings.
