HVAC 101: Understanding What SEER Is in HVAC 

Your clients want efficiency. They want it because it saves them money. They want it because it’s more sustainable. 

Whichever way you look at it, an efficient HVAC system is the way to go. 

So, how do you know which systems are most efficient? The answer is by looking at their SEER rating. 

What is SEER in HVAC? Let’s get to the bottom of this question. 

In this HVAC 101 guide, you’ll find out exactly what SEER means. We’ll explore how the ratings are calculated and advancements in HVAC efficiency. 

We’ll break down the compliance considerations you’ll need to make. Then, we’ll look at the benefits of installing systems with higher SEER ratings. 

We’ll also share some exciting future industry innovations. Finally, we’ll close off with a summary of the must-know basics. 

It’s not rocket science—it’s HVAC science. And the more you know, the better you position yourself in a competitive industry. 

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Understanding What SEER Is in HVAC Systems 

SEER stands for seasonal energy efficiency ratio. 

What does this measure? In short, how efficient an air conditioning system or heat pump is during a season. 

Knowing this is important because it affects how much energy a unit uses to cool or warm a space. And this impacts the cost of running it. 

A higher SEER rating means a system is more efficient. It’s cheaper to run. A lower SEER rating means a system is less efficient—and more expensive. 

You can think of a SEER rating as the unit’s peak performance or what it can do under ideal conditions. 

Of course, conditions are rarely ideal. Real-life variables get in the way. These factors could include the quality of the ductwork design and outside temperatures.  

Still, SEER ratings matter. They help you and your future clients compare options. You know that if you install a system with a SEER rating of 18, it’ll be less expensive for your clients to run than a system with a SEER rating of 13. 

If you’re curious, you can find the SEER rating of a unit by: 

• Reading the EnergyGuide sticker (this is generally on the part of the unit that goes outside) 
• Looking at the paperwork that came with the system 
• Finding the unit’s model number and searching online 

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How SEER Ratings Are Calculated 

SEER ratings are calculated using a pretty simple formula. It looks like this: 

Total Cooling Output (BTUs) / Total Electricity Consumption (Watt-Hours) 

• Cooling output is measured in British thermal units, or BTUs. 
• Energy used is measured in watt-hours. 

The calculation is made using data over the course of a cooling season. The higher the result, the more efficient the system. 

Let’s say you have an HVAC unit that delivers 36,000 BTUs of cooling. It consumes 4,800 watt-hours of electricity during peak usage. 

The calculation would look like this: 

SEER = 36,000 / 4,800 

SEER = 7.5 

So, the unit has a rating of 7.5—not the best. 

Now, this formula is just one part of the SEER rating calculation. Remember, SEER ratings show peak performance under perfect conditions. 

In reality, conditions are anything but. These factors affect the final SEER rating: 

• The ductwork 
• How well-sized the system is for the space 
• The state of the system (e.g., dirty filters can clog ducts and force the unit to work harder) 
• How the building is insulated 
• The local climate (e.g., a unit in a hot climate will behave differently from one in a cold climate—be sure to explain this to your clients) 

Advancements in HVAC Efficiency 

Technology is forging ahead. Like in many industries, advancements in HVAC aim to improve energy efficiency. 

Recently, we’ve seen leaps and bounds in progress. Most new units have a SEER rating between 13 and 24. 

In contrast, older air conditioners were generally rated around 8, 9, or 10. These outdated models used a lot more energy to cool a space. 

We can’t talk about progress without looking at SEER2 ratings. These are a whole new set of testing rules that show a unit’s efficiency in more realistic operating conditions. 

SEER2 ratings range from 13.4 to 28. Like SEER ratings, higher numbers reflect more efficient systems. 

Units that have SEER2 ratings perform better in more unpredictable or extreme environments. They are a great choice for very hot or cold areas. 

How Much Energy Can You Save? 

With improvements in energy efficiency come cost savings. 

Many home and business owners are struggling with rising energy costs. So, knowing the difference a higher SEER rating can make can set you apart from your competition. 

Prospects might choose you because you offer them a system that’ll save them hard-earned money in the long run. 

Let’s use an example. 

Say you have a client with a three-ton air conditioner with a SEER rating of 9. They pay about $696 each year to run it. 

You suggest they upgrade to an 18 SEER2 unit. This could save them a huge 52% on annual running costs. 

In one year, that’s a $332 saving. It goes up from there: 

• After five years, they’ve saved $1,823. 
• After 10 years, they’ve saved $3,646. 
• After 15 years, they’ve saved $5,469. 

Upgrading will cost your client upfront. But if you can show them the potential energy savings, you might convince them to go ahead. In time, the new unit will pay for itself—and then some. 

Compliance Considerations for SEER Ratings on HVAC Units 

EER ratings aren’t just a marketing tool. They are regulated by the US Department of Energy (DOE). The goal is to improve energy efficiency nationwide. 

Here’s what you need to keep in mind: 

Minimum SEER Ratings by Region 

On January 1, 2023, the minimum SEER rating went up. It increased to better reflect advancements in the industry. 

Minimum ratings vary depending on where you live and work. 

• In Northern states, units need a SEER rating of 14 or more. 
• In Southern states, units need a SEER rating of 15 or more. In these warmer areas, the demand for cooling is higher. 
• In Southwest states, HVAC systems often need both a SEER and energy efficiency ratio (EER) rating. This is to make sure the systems are suitable for extremely hot temperatures. 

These are the general minimums. There are also standards for units of different sizes. 

• For units with a cooling capacity under 45,000 BTU, the minimum is 15 in the South and Southwest and 14 in the North. 
• For units with a cooling capacity over 45,000 BTU, the minimum is 14.5 in the South and Southwest and 14 in the North.

The Launch of SEER2 Ratings 

In 2023, the HVAC industry adopted the SEER2 standard. We touched on this briefly above, but it’s worth revisiting. 

The new SEER2 ratings are about 4.7% lower than the old SEER ratings. Remember, SEER2 considers real-world factors, while SEER just looks at performance under optimal conditions. 

In 2024, it became a rule that all new units had both a SEER and SEER2 rating on their label. Only the SEER2 rating counts for compliance. 

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Deadlines for Non-Compliant Equipment 

If HVAC systems have a minimum required SEER rating, what happens to systems that don’t meet it? 

Different regions have different answers: 

• In the North, non-compliant systems built before January 1, 2023, can still be sold. 
• In the South and Southwest, non-compliant units can only be sold until the inventory is out. After that, they can’t be installed anymore. 

Standards for Heat Pumps 

It’s not just air conditioners in the spotlight. Heat pumps also have SEER2 regulations. 

The nationwide SEER minimum is 15. Testing conditions have changed to consider what’s called external static pressure or ESP. This makes the results more accurate. 

Heat pumps used to have a minimum ESP of 0.1. This has changed to 0.5. 

Standards for Packaged Systems 

Packaged air conditioners and heat pumps also have SEER2 requirements. Unlike split systems, the rules are the same across the country. 

• Packaged air conditioners must have a SEER2 rating of 13.4 or more. 
• Packaged heat pumps must have a SEER2 rating of 13.4 or more with a 6.7 heating seasonal performance factor (HSPF). 

Benefits of Higher SEER Ratings 

With the technicalities out of the way, let’s bring it back to you and your clients. 

Why should they care about having a high SEER rating? What are the benefits? 

Cost Savings 

It’s got to be the number one drawcard. A higher SEER rating equals lower energy bills. That’s a huge win. 

A unit with a higher SEER rating is more efficient. It uses less electricity to produce the same cooling effect. 

The upfront cost might be high—between $5,000 and $12,500 on average. But this initial spend is an investment in long-term savings. 

Improved Comfort 

Units achieve better energy efficiency in a whole number of ways. One is using two-stage or variable-speed compressors. 

The system can adjust the amount of cooling it provides based on the home’s needs. Instead of running at full capacity all the time, the unit can run at lower speeds more often. 

This reduces temperature swings. Your clients’ experience is consistent, and they even cool throughout the home. And this is so much more comfortable. 

Reduced Environmental Impact 

Less energy used is a plus for the environment, too. 

These systems use less energy to cool the same space. This lowers energy demand, which cuts the need for power generation. 

Non-renewable fossil fuels account for 60% of electricity generation in the US. These fuels are the largest contributor to global climate change. 

A higher SEER system helps lower the home’s carbon footprint—something becoming increasingly important to consumers. 

Longer System Lifespan 

Those two-stage or variable-speed compressors we mentioned reduce the system’s stress. The system pushes through less total air, which minimizes wear and tear. 

This means less maintenance and fewer repairs. The system also lasts longer, which further increases the cost savings. 

Future Innovations in SEER and HVAC Technology 

New technology is ushering in the next generation of HVAC units. These systems are smarter and more efficient than ever. 

Here are three future innovations in SEER and HVAC tech: 

Wi-Fi Thermostats and Smart HVAC Systems 

More control over an HVAC system can only be a good thing. 

With Wi-Fi thermostats, homeowners can adjust their heating and cooling from their phones—even when they’re not home. 

Forget to switch off the cooling on the way to the airport? No problem. Your customer can control the system remotely. This is more convenient and can save money. 

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Artificial Intelligence (AI) and Predictive Maintenance 

AI is everywhere—the HVAC industry included. And thanks to this ground-breaking technology, HVAC systems are becoming smarter and more efficient. 

For one, AI can predict with razor-sharp accuracy when a part will fail. HVAC techs like you can step in and repair before things escalate. This means less downtime for your customer. 

They can also optimize the system’s performance. Small tweaks in air temperature and volume can lead to significant savings. 

Variable-Speed Compressors 

A variable-speed compressor changes its speed depending on how much cooling is needed. It doesn’t run at full power all the time like older compressors. This makes the system more efficient and helps keep indoor temperatures steady. 

Systems with variable-speed compressors have higher SEER ratings, too. They also last longer since they do not turn on and off as much. 

SEER Ratings in HVAC: The Basics 

To sum up, here’s what you need to know about SEER in HVAC: 

• SEER stands for seasonal energy efficiency ratio. It’s a way to understand how efficient a system is. 
• A higher-rated SEER unit uses less energy to cool the same space compared to a lower SEER unit. 
• Minimum SEER ratings vary by region. Make sure you know the rules in your area. That way, you can stay compliant. 
• SEER2 is the updated standard. It accounts for real-world conditions. 
• Higher SEER ratings reduce costs. Customers can save big on energy bills by upgrading.