Key Points
- Energy-efficient HVAC systems create comfort and long-term savings. Installation and wiring both affect its efficiency.
- Different regions have unique requirements for the minimum SEER2 ratings a system must have to be installed.
- Higher humidity levels and utility bills, and more frequent maintenance calls indicate decreased HVAC efficiency.
- Choose a smart condenser setup location, keep debris away, and get annual preventative maintenance to maximize efficiency.
Facts are facts: The HVAC industry has a steep learning curve. Many proprietary terms and acronyms can confuse and frustrate anyone not in the know. Luckily, IWAE is happy to help you find your footing. Between our team of experts and our glossary of industry terminology, you don’t have to shy away from figuring out how energy-efficient your heating and cooling system really is. You don't have to be a genius to understand the basic metrics that explain how much money you’re saving (or wasting). Knowing where to start is the hardest part, so let the team here at IWAE help you verify your system’s efficiency and steer you in the right direction to pick an energy-efficient HVAC system if yours isn’t up to snuff.
Energy-Efficient HVAC Factors
The biggest perks of owning an energy-efficient HVAC system are the savings you’ll find on your monthly utility bills and the potential qualification for rebates. In a traditional HVAC system, there are 3 main considerations when evaluating the overall energy efficiency: heating, cooling, and ventilation. A typical central system uses ductwork throughout your home to circulate conditioned air. Heating and cooling technology is always advancing, improving efficiency along the way. While chances are high that your home’s HVAC hardware is the biggest source of energy consumption that you have, these systems are designed to last for years. That means, if you prioritize energy efficiency when you purchase a new system, you stretch those savings for the best return on your investment. Still, other factors can influence your efficiency, including the contractor you choose to install your system and even the electricians who wire your system.


Air Conditioner & Heat Pump Efficiency (SEER)
Learning the energy efficiency of your HVAC system starts with understanding the SEER (Seasonal Energy Efficiency Ratio) rating of your air conditioner. To find the SEER rating of your air conditioner, check the user manual or the AC condenser’s cabinet. The SEER rating system explains how efficiently an AC unit converts electricity into cooling power, where higher ratings indicate higher efficiency.
As of 2023, HVAC systems have a minimum SEER2 rating requirement they must meet to be installed as a new heating and cooling solution:
- In the North Region, SEER2 ratings must be 13.4 for ACs and 14.3 for heat pumps
- In the Southeast, SEER2 ratings must be 14.3 for ACs and 14.3 for heat pumps
- In the Southwest, SEER2 ratings must be 14.3 for ACs and 14.3 for heat pumps
If your system falls short of this rating, it’s time to consider a more efficient system to reduce energy expenses. If the system you already have installed doesn't meet minimum Federal standards, don’t worry! These standards are only required for newly installed systems.
Gas Furnace Efficiency (AFUE)
Where SEER is the standard metric for measuring energy efficiency in air conditioning, AFUE (Annual Fuel Utilization Efficiency) is the equivalent for furnaces. AFUE ratings explain how much fuel is lost during the combustion process. Similar to SEER ratings, a higher percentage indicates higher efficiency. Curious what a good AFUE rating is? Since the percentage indicates how much of the fuel source is used in the heating process, anything 90% AFUE and above is considered to be reliably energy-efficient HVAC. A 90% rating means only 10% of fuel is lost in the combustion process. To get the most bang for your buck, invest in a furnace with an AFUE at 96% or higher. Just like with the SEER rating, check the owner’s manual that came with your furnace or the plate on the unit’s cabinet.
Signs Your HVAC System Isn't Operating As Efficiently As It Should
Laboratory-tested HVAC efficiency is important, but how those results translate to real-world application is what matters the most. Purchasing an AC that earns an 18 SEER or a furnace with a 97% AFUE rating doesn’t guarantee you’re getting that level of efficiency once the system is installed in your home. Several factors diminish the efficiency of an HVAC system once it’s up and running, such as:
- Age: older systems tend to lose efficiency over the years
- Maintenance: neglecting repairs decreases efficiency and causes additional damage
- Installation: improper setup leads to your system failing to live up to its potential
Out of Control Interior Humidity
A good air conditioner should cool your home while reducing interior humidity. If the inside is too humid, your air conditioner might be having trouble. An easy way to identify this is by finding condensation on your windows. Not only does this leave you uncomfortable, but it also leads to increased costs when you run the cooling cycle. If you’re looking to make your home less humid, start by looking at your HVAC system. The culprit could be dirty coils. The dirtier the coil, the worse it handles cooling and dehumidifying. Annual HVAC maintenance helps keep your system as efficient as possible, so be sure to schedule an inspection for your AC before summertime to avoid humidity issues.


Higher Utility Bills
When there haven’t been big changes to your everyday HVAC use, a big jump in your electric or gas bill indicates that your HVAC system isn’t living up to its energy efficiency potential. Slight increases over time are normal, but large fluctuations often indicate a serious problem. Take some time to review your bills over the past few years to get an idea of what you have been paying on your utilities. If you see an unusual increase in costs, contact a qualified technician to clean and check your system. This professional will give you all the information you need to determine whether you should fix the issues in your current system or look for a new, efficient HVAC system to conserve energy.
Frequent HVAC Breakdowns
Breakdowns don't necessarily lead to lower efficiency, but it’s a rarity for any system with chronic malfunctions to operate at peak efficiency. If your system is struggling to maintain comfortable temperatures, use these guides as a starting point to figure out what’s going on:
At the end of the day, being on a first-name basis with your local technician means it’s time to invest in a new, energy-efficient HVAC system.
Long-Term Energy-Efficient HVAC Tips
Whenever you decide to pull the trigger on an energy-efficient HVAC system upgrade, keep the following in mind.
Condenser Location
Did you know that factors like how much direct sunlight your condenser is subject to and the amount of debris nearby affect its efficiency? A shady area on the north side of your house may be the perfect spot to install a new AC! This mitigates how hot the unit gets during summertime heatwaves, optimizing efficiency by keeping your system from working overtime. Just be sure the trees providing that shade won’t leave lots of debris around the condenser: you don't want Mother Nature so close that she blocks your airflow. High plant growth, including weeds, vines, and more, can lead to issues with your outdoor unit.
Keep the System Clear and Clean
Your condenser needs to be kept clear of debris, and your indoor hardware demands the same level of TLC. Cleaning your furnace keeps buildup from forming in the unit. The air ducts should be inspected and cleansed as well, as blockages lead to restricted airflow and decreased efficiency. Even keeping up with regular air filter changes is integral for sustained efficiency from your HVAC system.
Regular Service Checks
Each part of your HVAC system has unique strategies to keep in mind when it comes time for maintenance. Your heating system should be checked before autumn so you’re not left without the warmth you need when temperatures outside plummet. After all, preventative furnace maintenance maximizes your system’s energy efficiency and savings throughout the year. Even systems that tend to require little in the way of repairs, like geothermal systems, benefit from consistent maintenance and cleaning.


Enjoy HVAC Efficiency with IWAE
Keeping your home’s HVAC system energy-efficient is the easiest way to maximize your savings over time. If the tips and tricks shared in this article or the linked resources don’t do enough to make your current system live up to the lofty expectations of modern units, shopping our online catalog of energy-efficient HVAC systems is the best path forward. With IWAE at your side, finding a way to keep your heating and cooling effective and efficient has never been simpler. If you have any questions or concerns, shoot us a call or message! Our customer service professionals are ready to help you explore the many options on the market to find a fit for your home.

