HVAC Industry Prepares for New Energy Standards

The HVAC industry must prepare for major changes with new USDOE energy conservation standards for commercial air conditioners and heat pumps, (RTUs or rooftop units), scheduled to take effect Jan. 1, 2018.

https://energy.gov/sites/prod/files/2015/12/f27/CUAC-CUHP%20CWAF%20Direct%20Final%20Rule.pdf

https://www1.eere.energy.gov/buildings/appliance_standards/standards.aspx?productid=35

https://www1.eere.energy.gov/buildings/appliance_standards/standards.aspx?productid=49&action=viewlive

The rooftop air conditioner standards — which will cover new units found on smaller buildings, such as hospitals, schools, and retailers — will take effect in two phases. Minimum efficiency will increase by about 10% as of Jan. 1, 2018, and by 25-30% as of Jan. 1, 2023. New standards for new warm-air furnaces become effective in 2023.

Based on USDOE estimates, the new rooftop air conditioner energy standard will save 1.7 trillion kWh over 30 years, which is expected to outpace any other standard completed by the agency, more than any other USDOE standard ever. The USDOE estimates that the new standards would net a typical building owner $4,200-$10,100 over the life of a single rooftop air conditioner. There does not appear to be any movement toward repealing or changing the standards by the new administration.

HVAC manufacturers must incorporate significant design changes in order to comply. Most affected manufacturers have not publicly stated any opposition to the new energy standards, as a major selling point of this equipment is energy efficiency. Of course, implementing new technologies and designs costs money, which will likely raise the cost of new units, but potentially in small increments given the competitive situation.

Another industry likely to benefit from the upcoming standards are utilities. RTUs particularly use a lot of electricity on hot summer days when overall electric demand is at its peak and a concern of utilities to deliver reliable power to everyone. More efficient units gradually being purchased and installed may stem the tide of annual increases in electric demand and make managing a large grid system a little easier.

And this rule may well benefit the consumer. Given the overall financial benefit of operating a more efficient unit, it may be advantageous to wait until 2018 to purchase additional units. Or those on short budgets may want to maximize purchases in 2017, saving capital now for longer term costs in future years.

CCES has the experts to assess your HVAC equipment to determine more efficient units and controls to minimize electric usage and peak demand and maximize financial benefits. Contact us today at karell@CCESworld.com or at 914-584-6720.