What's Driving Up Heating and Cooling Costs Next Year? - Sun Heating & Cooling, Inc.

What’s Driving Up Heating and Cooling Costs Next Year?

save now before costs rise

Did you know that the price of your air conditioner could go up next year? That’s because of some new legislation that’s being introduced …

Beginning January 1, 2023, two important new pieces of legislation are being introduced. And that’s what we’re going to talk about in this week’s blog post!

The Inflation Reduction Act

This is a huge series of regulations that the government is introducing in an effort to help reduce the rate of inflation (as the name implies!). But there are also a lot of measures taken in the Act to try and fight climate change, and help the environment.

So what the Inflation Reduction Act, specifically the High-Efficiency Electric Home Rebate Program (HEEHRP), is doing is offering HUGE discounts on installing energy-efficient equipment.

Families with qualifying incomes can receive up to $8,000 back when installing a new heat pump. And even if you don’t qualify income-wise by making less than 150% of the average income, you can still receive a signification amount back. It’s true that here in the Oakland County area, heat pumps, although highly efficient systems, are not as viable because it gets cold here and heat pumps only work well in warm climates.

But, fear not! This new legislation could save you a ton of money, in the form of tax credits.

More specifically, ENERGY STAR has a tax rebate program for highly efficient heating and cooling equipment, and these tax credits are usually renewed every year. In past years, these rebates have only been valid for the previous tax year, and have been rather small monetarily. But the Inflation Reduction Act has gotten rid of both of these issues! Now, the tax rebates are valid on qualifying purchases through the year 2032!! And, you can get up to $600 off a qualifying air conditioner, furnace, or water heater. Even better, these tax rebates don’t just reduce your tax liability – they are an actual check in the mail, sent to you from the government!


What else is happening in 2023 that will have an impact on your heating and cooling costs? SEER standards are changing, and becoming more stringent. And unfortunately, this is a measure that could cost you money, rather than saving money.

SEER, or Seasonal Energy Efficiency Ratio, is a way of measuring how much energy an air conditioner uses to cool your home. Basically, an air conditioner’s SEER reflects how “good” and energy-efficient the system is. And, as of January 1, 2023, in order to meet the new SEER standards, all newly manufactured air conditioners will have to have a rating of 14 or higher.

This will almost certainly drive up A/C costs starting in 2023 because in order to meet the new SEER standards, manufacturers will have to use more expensive materials and components on all units. Not to mention the fact that overall supply goes down because only certain units qualify to be sold. And as supply goes down, demand, and cost, go up!

In conclusion…

There are some big changes happening in 2023 that will have an impact on your heating and cooling costs. We’re glad to keep you informed, so you can take advantage of any programs or rebates that you may be eligible for, and perhaps invest in new equipment NOW before the big price hikes take effect in 2023.

If you have any questions about the new legislation, or how it may impact your Oakland County home, please don’t hesitate to reach out! Just contact us onlineor call us: (248) 986-1506.

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