Will a New AC System Lower My Energy Bills in Indiana?

A new air conditioning system can probably lower your energy bill. We dive in to the specifics in the blog! 

How Much Can a New AC System Actually Lower Your Energy Bill?

A new AC system can lower energy bills at your home substantially. This is especially true if your existing AC system is old, inefficient, or incorrectly sized for your home. The U.S. Department of Energy (DOE) shares that switching to high-efficiency air conditioners and taking other actions to keep your home cool could reduce energy use for air conditioning by up to 50%. Across the board, we see customers enjoy anywhere from 20% to 50% reductions in cooling costs after choosing various options for air conditioning installation in Indiana.

If you’re in a spot where your current AC isn’t cutting it, you might be wondering how to analyze new AC cost versus better efficiency. Let’s talk about what’s behind how much you’ll save with an upgrade to an energy-efficient air conditioner in Indiana.  

What Does SEER Rating Have to Do With My Energy Savings?

It’s always exciting when a homeowner comes to us with questions about SEER ratings because it means they’ve been studying and preparing to make an informed decision about AC replacement cost in Indiana. SEER stands for Seasonal Energy Efficiency Ratio. It’s the rating the HVAC industry uses to measure the cooling efficiency of an air conditioner or heat pump.

SEER is calculated by dividing a unit’s cooling output in BTUs over the course of an average cooling season by the energy hours (watts) used during the same period. A higher SEER rating indicates that a unit requires less energy to operate. As a result, ACs with higher SEER ratings cost more initially while providing more substantial longer-term savings over the lifetime of owning the unit. In 2023, the Department of Energy switched to an updated SEER2 standard that better reflects real-world testing conditions for a more accurate energy-efficiency assessment. Here’s a cheat sheet for the current SEER2 tiers:

• 13.4-14.3 SEER2: This is the standard tier representing the Department of Energy’s minimum legal requirement for AC systems.
• 15-16 SEER2: This mid-range tier provides higher energy savings while still offering affordable initial installation for many homeowners.
• 17-19 SEER2: This tier represents high-efficiency systems that can substantially reduce monthly heating costs. In addition, this is generally the tier to focus on if you’re interested in purchasing a system that can qualify for state, federal, or Energy Star rebates.
• 20+ SEER2: This brings us to the ultra high-efficiency tier that allows homeowners to maximize energy savings while also qualifying for potential energy rebates.

Why Does My Old AC Cost So Much To Run?

Central air conditioner efficiency degrades over time. However, the exact cause of why your AC system is so expensive to run can come down to several different things. First, look at your unit’s SEER rating. If it was lower to begin with, your system is already operating at a disadvantage. Plus, even good SEER ratings from a decade ago are considered outdated compared to a new high-efficiency AC unit.

There could also be an issue of your system either never being installed correctly or never being the right size for your home. When ACs are either too large or small for a home, they can run constantly while struggling to actually achieve the set temperature. That’s why bringing in HVAC pros for an in-home assessment for AC sizing and efficiency is so important. In addition to just looking at your home’s square footage, our technicians will also factor in things like window placement, solar gains, leaky ducts, and more for 100% personalized AC sizing.

Aging parts on an old AC system can also slow things down. The mechanical components of things like compressors or fans can become less efficient over time. It’s also possible that your old AC may be running poorly because dirty parts are restricting airflow. In some cases, changing filters and cleaning coils can help you get more life out of a unit that isn’t actually struggling as much as you thought it was.

How Do I Know if My Current AC Is Losing Efficiency?

It’s always a good idea to have an HVAC technician come in to evaluate your AC’s performance if you suspect you need a replacement. However, these telltale signs should be enough to clue homeowners in:

• Rising energy bills: If you see your energy bills suddenly skyrocketing beyond just the expected increase from your supplier, this could be a sign that your AC can’t keep up. When it costs more to cool your home when it’s set at the same temperature you’ve also selected, it probably means your system is overworking to reach the thermostat temperature.
• Hot spots and poor airflow: If your home has warm pockets where the AC should be cooling, this is a sign of diminishing capacity. The same goes if it seems like airflow throughout your home is more stagnant compared to the past.
• More humidity: Does your home suddenly feel more humid this year? A big part of how AC keeps our home comfortable is its natural dehumidifying power. When the home is suddenly stuffier and stickier, this means cooling capacity is down.
• Cycling has changed: If you’ve recently noticed that your AC seems to constantly run, this is a sign it’s struggling to cool your home. Aside from cycling noises, things like grinding, banging, screeching, and clanking can all indicate mechanical failures.

Does the Size of My AC Unit Affect My Energy Bill?

AC size can absolutely impact your energy bill. This is where having your home’s cooling needs assessed for custom sizing becomes crucial. Some homeowners assume that going smaller will reduce their cooling bills. The opposite is true. When your AC is undersized for your home, it’s also underpowered. That means it’s going to overcompensate to try to cool your home. As a result, it will run constantly. In addition to higher monthly bills, you’re also likely to see your unit break down early because of the extra wear and tear.

An oversized AC comes with its own issues. Your system will quickly cool the space before shutting off once the temperature on the thermostat is reached. That may sound good at first. However, the end result is that the AC will shut off before it has a chance to remove the humidity from the air in your home. The end result is often a clammy, humid home.

Plus, oversized units are notorious for short-cycling. That means they constantly turn on and off. AC short-cycling dramatically increases wear and tear and puts strain on mechanical parts. It also increases your home’s energy output because it can take more energy to constantly stop and start compared to running consistently.  

It’s a night-and-day difference once your home has an AC that’s the right size. When you have the ideal BTUs for your home’s size and configuration, you will notice that your unit runs for a duration that’s perfect for cooling the air and removing humidity. The end result can be a much more comfortable space with much lower monthly energy bills.

What Other Factors Determine How Much I’ll Actually Save?

An AC upgrade can have a big impact on energy bills. The following factors can also affect how much you’ll save with a replacement:

• Your thermostat settings: Your desired indoor temperature can impact how efficiently your system runs. When you have a wider difference between the outdoor temperature and the temperature set on your thermostat, your system can lose efficiency as it works harder to close the gap.
• Your home’s envelope: Every home has an “envelope” that’s determined by things like window dressings, the number and placement of windows, insulation, weatherstripping, and more. Homes with more “leak” points generally heat up faster.
• Maintenance: How consistently you keep up with AC maintenance after your new system is installed has a big impact on efficiency and performance. When you aren’t getting your system routinely checked and cleaned, things like clogged filters, dirty AC coils, animal nests, and more can block airflow and reduce efficiency.

Does My Home’s Insulation or Ductwork Affect the Savings?

The state of your home’s ductwork can impact just how efficiently your AC can actually cool your home. Old, cracked, sagging, crushed, and worn ductwork allows for air leak points. In addition, things like bends in your ductwork can restrict airflow. Issues like blocked vents or poor insulation also affect how much treated air actually makes it to the space you’re trying to cool. Having your ductwork inspected when you get a quote for a new AC can be a great way to get the most from your upgrade.

Is a New AC System Worth the Upfront Cost in Indiana?

AC replacement cost in Indiana helps homeowners add value to their homes while also enjoying lower energy bills and enhanced comfort. As energy bills rise, having a system that wastes as little treated air as possible is a big deal. In addition, replacing a system that is either inefficient or needs constant repairs can help you avoid sinking money into fixing or replacing major components when there’s no guarantee your old system will be able to make it through another summer. To protect your investment, you can choose a warranty-backed AC system from a trusted manufacturer.

How Do I Find Out What I’d Actually Save With a New AC System?

If your AC is struggling, your hunch that you’re paying to cool your home without actually getting the cooling benefits is probably correct. That’s often reason enough to jump to a new energy-efficient air conditioner in Indiana. However, there are some simple savings calculations you can do for new ACs, such as comparing the SEER/SEER2 rating of your current AC against the one you’re planning to install. You’ll then be able to see what the difference would look like based on what’s charged for kilowatt-hours (kWh) by your energy provider.

A way to get a more specific calculation is to have a local HVAC contractor come in to perform something called a manual J load calculation. This is the standard used by the Air Conditioning Contractors of America to accurately measure a home’s heating and cooling requirements. Based on the results, your HVAC contractor can help you compare what you’re paying for cooling every month versus what you could be paying with a new system that’s sized for all of your home’s specific factors.

HomeSense is here to help you discover if a new AC system can lower your energy bills. We offer pressure-free consultations for air conditioning installation in Indiana. Just call 463-303-1434 or book your free consultation online to have one of our friendly, competent HVAC experts come out for an in-person visit.