Estimate Your AC & Furnace Energy Savings | Compare Efficiency Ratings | Plan Your Upgrade
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Wondering if upgrading your AC or furnace is worth it? Use our free calculator to estimate how much you could save on energy bills by switching to a more efficient system.
In North Texas, where air conditioners run 6+ months per year, the difference between an old 10 SEER unit and a new 18 SEER system can mean hundreds of dollars in annual savings.
Upgrading from 10 SEER to 18 SEER can save up to $9,000+ over the life of your system.
Select your current and new system specs to see your estimated savings
0 SEER vs 0 SEER on a 0 BTU Air Conditioner
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0 AFUE vs 0 AFUE
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What efficiency ratings mean for your energy bills
SEER stands for Seasonal Energy Efficiency Ratio. It measures how efficiently an air conditioner converts electricity into cooling power over an entire cooling season.
The formula is simple: SEER = Total cooling output (BTUs) ÷ Total electricity used (watt-hours)
Higher SEER ratings mean the unit uses less electricity to produce the same amount of cooling. For example, an 18 SEER air conditioner uses about 44% less energy than a 10 SEER unit to cool the same space.
As of January 2023, the Department of Energy introduced SEER2, a new testing method that better reflects real-world conditions. In Texas (South Region), the new minimum efficiency is:
| SEER | Efficiency |
|---|---|
| 8-10 SEER | Old/Inefficient |
| 14-15 SEER | Minimum Standard |
| 16-18 SEER | High Efficiency ✓ |
| 20+ SEER | Premium Efficiency ★ |
*For North Texas, we recommend 16-18 SEER as the best balance of efficiency and value.
| AFUE | Efficiency |
|---|---|
| 70-80% AFUE | Standard Efficiency |
| 80-89% AFUE | Mid-Efficiency |
| 90-95% AFUE | High Efficiency ✓ |
| 96-98% AFUE | Premium Efficiency ★ |
*Upgrading from 80% to 95% AFUE can reduce heating costs by nearly 20%.
AFUE stands for Annual Fuel Utilization Efficiency. It measures how efficiently a furnace converts fuel (typically natural gas) into heat over a heating season.
An AFUE of 95% means that 95% of the fuel is converted to heat for your home, while only 5% is lost through exhaust gases. The higher the AFUE, the more heat you get from each dollar spent on gas.
Furnaces with 90%+ AFUE are called "condensing" furnaces because they capture heat from exhaust gases that would otherwise be wasted. These units are more efficient but require special venting.
In North Texas where winters are mild, a 90-95% AFUE furnace typically provides the best return on investment.
More than just energy savings
High-efficiency systems use significantly less electricity and gas, reducing your monthly utility costs by hundreds of dollars per year.
Modern high-SEER units feature variable-speed compressors and advanced sound insulation, running up to 50% quieter than older models.
Variable-speed systems run longer at lower speeds, removing more moisture from the air and keeping your home more comfortable.
Advanced systems eliminate hot and cold spots by delivering precise, even cooling and heating throughout your home.
Using less energy means fewer greenhouse gas emissions. A high-efficiency system is better for your wallet and the environment.
Many high-efficiency systems qualify for utility rebates and federal tax credits, reducing your upfront investment.
SEER stands for Seasonal Energy Efficiency Ratio. It measures how efficiently an air conditioner converts electricity into cooling over a typical cooling season. Higher SEER ratings mean greater energy efficiency and lower operating costs. As of 2023, the minimum SEER rating for new AC units in Texas is 15 SEER (or 14.3 SEER2). The higher the number, the less electricity your AC uses to cool your home.
SEER2 is the updated testing standard introduced in January 2023 that measures efficiency under conditions that more closely simulate real-world installation, including higher external static pressure. SEER2 ratings are typically about 4.7% lower than SEER ratings for the same equipment. A 15 SEER unit is roughly equivalent to a 14.3 SEER2 unit. When shopping for a new AC, you may see both ratings listed - they describe the same equipment, just measured differently.
Savings depend on your current system's efficiency, the new system's efficiency, and how much you use your AC. For example, upgrading from a 10 SEER to an 18 SEER system on a 3-ton AC can save approximately $400-600 per year on cooling costs in North Texas. Over 15 years, that's $6,000-9,000 in energy savings - often more than the difference in equipment cost. Use our calculator above to estimate your specific savings based on your system size and current efficiency.
For North Texas homes, we typically recommend 16-18 SEER systems as the best balance of efficiency and upfront cost. A 16 SEER unit offers solid efficiency at a reasonable price point, while 18 SEER provides excellent long-term savings. Higher SEER units (20+) offer maximum efficiency but have higher upfront costs that take longer to recoup. Our comfort advisors can help you determine the best option based on your home size, budget, and usage patterns.
AFUE stands for Annual Fuel Utilization Efficiency and measures how efficiently a furnace converts fuel (natural gas) into heat over a heating season. An AFUE of 95% means 95% of the fuel becomes heat for your home while only 5% is lost through exhaust gases. Standard furnaces are 80% AFUE, while high-efficiency models are 90-98% AFUE. In North Texas where winters are mild, a 90-95% AFUE furnace typically provides the best return on investment.
In Texas where cooling seasons are long and hot (6+ months), higher SEER systems often pay for themselves through energy savings within 5-8 years. Additionally, high-efficiency systems typically run quieter due to variable-speed technology, provide better humidity control, maintain more consistent temperatures, and may qualify for utility rebates and federal tax credits. For most DFW homeowners who plan to stay in their home 5+ years, a higher SEER unit is a smart investment.
Our calculator provides reasonable estimates based on average North Texas conditions: $0.156/kWh electricity rates, 2,300 cooling hours per season, and standard equipment performance. Your actual savings may vary based on your specific electricity rates, home insulation, thermostat settings, and usage patterns. The calculator is designed to give you a ballpark figure to help with decision-making. For a precise estimate tailored to your home, schedule a free consultation with our comfort advisors.
Several rebates and incentives may be available: utility company rebates (Oncor, TXU, etc. often offer $200-$500 for high-efficiency installations), federal tax credits (up to $2,000 for qualifying heat pumps and high-efficiency systems under the Inflation Reduction Act), and manufacturer rebates (seasonal promotions from Trane, Carrier, Lennox, etc.). Our team stays current on available incentives and will help you maximize your savings. Rebates can significantly offset the cost difference of upgrading to higher efficiency.
Get a free, no-obligation quote on a high-efficiency AC or furnace installation.
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