TREND: HVAC Equipment Prices Expected to Keep Rising! But WHY!?

As part of our commitment to keeping you informed about the latest industry developments, we have important updates on the pricing of heating, ventilation, and air conditioning (HVAC) equipment and regulatory changes that may affect your home or business.

EPA Changes for Refrigerant

The EPA is phasing out R-410A refrigerant due to its high global warming potential (GWP) and other concerns.

Here are the main reasons driving this refrigerant transition:

• Environmental Impact

R-410A has a high GWP—2,088—which means it significantly contributes to global warming when released into the atmosphere. The EPA aims to reduce refrigerants’ environmental impact by transitioning to alternatives with lower GWP values, such as R-32 and R-454B.

• Regulatory Compliance

This phase-out aligns with international agreements like the Kigali Amendment to the Montreal Protocol, which seeks to reduce the use of hydrofluorocarbons (HFCs), including R-410A. The U.S. is committed to phasing down HFCs to mitigate climate change.

• Promoting New Technologies

The phase-out encourages the development and adoption of newer, more environmentally friendly refrigerants. Alternatives like R-32 and R-454B have lower GWPs and are becoming more popular in the HVAC industry, though they are already present in other appliances like refrigerators.

HVAC Equipment Prices Rise

The phase-out of R-410A refrigerants will make new units more expensive. Manufacturers are transitioning to these new refrigerants, which comply with environmental regulations but are more expensive.

• Raw Material Costs

The rising costs of raw materials essential for manufacturing HVAC systems contribute to the price hikes.

• Supply Chain Challenges

Ongoing supply chain disruptions have led to increased production costs, which are being passed down to consumers.

• Department of Labor

New overtime rules released by the Department of Labor will impact HVAC contractors. The rules increase the minimum salary thresholds required to exempt certain employees from federal overtime pay requirements.

Major OEMs Price Increase By 6% In 2025

Industry leaders are expecting the manufacturing cost of units with the new refrigerants to increase in 2025, which will, in turn, increase the retail cost of those HVAC systems. In addition, as R-410A phases out, existing units and parts may also see a price change.

What Does This Mean For You?

You may not notice as much of a transition as HVAC professionals will. Existing equipment installed at your home can still be serviced. R-410a will cease production in 2025, but equipment manufacturers have already expressed that there will be parts to last the life of existing equipment.

If you have an aging or failing system, you may need to consider replacing the unit sooner than planned. Now, when shopping for new units, you have an alternative option: equipment using alternative refrigerants like R-32 and R-454B.

While the transition to new refrigerants offers environmental and potential efficiency benefits, it also introduces a range of challenges. The actual performance of these new refrigerants will become evident only with time and widespread usage. The industry will need to remain flexible and responsive to these evolving challenges to ensure a successful transition.

Save Now, Replace Today!

While R-410A systems offer stability and proven performance, new refrigerants present an opportunity for greater environmental responsibility and potential cost savings through improved efficiency.

As with any new technology, there are challenges and uncertainties that will become clearer over time. Carefully weigh the immediate and long-term benefits against the potential risks and costs to make an informed decision that aligns with your priorities and values.

For personalized advice or to explore your options further, please get in touch with Western Heating & Air Conditioning. We’re here to help you navigate these choices and find the best solution for your needs. Call us today at 208-319-1736 or request an estimate online.