Article Contents
Key Takeaways
- SEER (Seasonal Energy Efficiency Ratio) ratings indicate the efficiency of an air conditioning unit, with higher SEER ratings meaning lower energy consumption and cost savings over time.
- A 16 SEER unit is more energy-efficient than a 14 SEER unit, saving homeowners about $21.40 per year in energy costs, which adds up over the system's lifetime.
- While a higher SEER rating generally leads to greater efficiency, actual savings depend on factors like installation, climate, and usage, making it important to evaluate the cost-benefit before upgrading.
When shopping for a new air conditioner or heat pump, you've probably noticed labels referencing a SEER rating. But what exactly does SEER mean, why does it matter, and how can understanding it help you save money? In this article, we'll clearly explain SEER ratings, illustrate how upgrading from a lower-rated system can result in substantial savings, and guide you through practical examples.
What Is a SEER Rating, and Why Is It Important?
The Seasonal Energy Efficiency Ratio (SEER) measures how efficiently your air conditioner or heat pump cools your home over an entire cooling season. Specifically, SEER is calculated by dividing the total cooling output (in British Thermal Units, or BTUs) by the total electrical energy used (in watt-hours) during the same period. Simply put, a higher SEER rating means better energy efficiency, lower electricity bills, and reduced environmental impact.
Why SEER Matters for Homeowners
Understanding SEER ratings helps homeowners choose HVAC systems that balance comfort, environmental responsibility, and financial savings. Higher-rated systems reduce your carbon footprint and deliver substantial cost savings over their lifetimes, even if they carry higher upfront costs.
History of SEER Ratings
When Was SEER Introduced?
SEER ratings were introduced in 1975 by the Air Conditioning, Heating, and Refrigeration Institute (AHRI) to standardize how the energy efficiency of air conditioners was measured and marketed. Initially, air conditioners often had SEER ratings as low as 6 or even lower, making them highly inefficient by today's standards.
The U.S. Department of Energy (DOE) established the first minimum SEER requirements in 1992, mandating that all newly manufactured air conditioners have a minimum rating of 10 SEER. Since then, the DOE has periodically increased these minimum standards to improve energy efficiency and reduce national energy consumption.
In 2023, the DOE's minimum SEER rating requirements were 13 for Northern States and 14 for Southern States. Now, in 2025, the SEER rating requirements are as follows:
- Northern U.S.: 14 SEER minimum
- Southern U.S.: 15 SEER minimum
Today’s most advanced residential AC systems can achieve SEER ratings of 25 or even higher, reflecting substantial improvements in HVAC technology.
AC SEER Requirements by Region
Regional AC SEER Standards
You can find the specific AC SEER requirements for each region of the U.S. below.
How Much Money Can You Save by Upgrading to a Higher SEER Unit? - A Step-by-Step Calculation
Let's explore exactly how upgrading your SEER rating translates into financial savings using clear calculations.
Example 1: Savings from Upgrading from 13 SEER to 16 SEER
Consider a standard 2-ton (24,000 BTU) air conditioning unit.
Step 1:
First, we convert an AC unit's cooling power (measured in BTUs) into electricity usage (measured in watts). The formula is: Watts per hour = Cooling Capacity (BTUs/hour) ÷ SEER Rating.
Then, convert the watts into kilowatts (kW) by dividing by 1,000.
- 13 SEER: 24,000 BTUs ÷ 13 SEER = 1,846 watts/hour ÷ 1,000 = 1.846 kWh
- 16 SEER: 24,000 BTUs ÷ 16 SEER = 1,500 watts/hour ÷ 1,000 = 1.500 kWh
A 16 SEER unit uses 346 fewer watts per hour than the 13 SEER unit – meaning it uses less energy and is more efficient.
Watts per Hour Usage - 13 SEER vs 16 SEER
Step 2:
Next, we calculate the hourly operating costs by multiplying the kWh usage by an electricity cost of $0.20/kWh.
- 13 SEER: 1.846 kWh × $0.20 = $0.369/hour
- 16 SEER: 1.500 kWh × $0.20 = $0.30/hour
This results in a saving of 6.9 cents per hour.
Hourly Operating Costs - 13 SEER vs 16 SEER
Step 3:
Finally, we determine the annual operating cost. Assuming 500 total hours per year, we calculate the annual savings.
- 13 SEER: 500 hours × $0.369/hour = $184.60/year
- 16 SEER: 500 hours × $0.30/hour = $150.00/year
Total Annual Savings: $34.60/year
Over 15 years, the savings add up to approximately $519, which can help offset the higher upfront cost of a 16 SEER unit.
Annual Savings - 13 SEER vs 16 SEER
Example 2: Upgrading from 14 SEER to 16 SEER
Again, considering a similar-sized (24,000 BTU) system:
Step 1:
-
Watts per hour usage calculation:
- 14 SEER: 24,000 BTUs ÷ 14 SEER = 1,714 watts/hour ÷ 1,000 = 1.714 kWh
- 16 SEER: 24,000 BTUs ÷ 16 SEER = 1,500 watts/hour ÷ 1,000 = 1.500 kWh
The 16 SEER unit uses 214 fewer watts per hour compared to the 14 SEER model.
Watts per Hour Usage - 14 SEER vs 16 SEER
Step 2:
-
Hourly Operating Costs (at $0.20/kWh):
- 14 SEER: 1.714 kWh × $0.20 = $0.3428/hour
- 16 SEER: 1.500 kWh × $0.20 = $0.30/hour
This represents a saving of approximately 4.28 cents per hour.
Hourly Operating Costs - 14 SEER vs 16 SEER
Step 3:
-
Annual Savings (500 hours per year):
- 14 SEER: 500 hours × $0.3428/hour = $171.40/year
- 16 SEER: 500 hours × $0.30/hour = $150.00/year
Total Annual Savings: $21.40/year
Over a 15-year lifespan, you’ll save around $321.
Annual Savings Calculation - 14 SEER vs 16 SEER
Why This SEER Calculation Matters
Benefits of Upgrading to a Higher Efficiency
These simple calculations clearly demonstrate how upgrading to a higher SEER rating leads directly to reduced electricity usage and lower monthly electric bills. Even seemingly small improvements (like moving from 14 SEER to 16 SEER) accumulate meaningful financial savings over time. In summary:
- Higher SEER rating → fewer watts consumed.
- Fewer watts consumed → lower hourly cost.
- Lower hourly cost × seasonal use → substantial annual savings.
Factors Affecting Actual SEER Efficiency
Other Elements that Affect Your HVAC's Efficiency
It's important to note that your air conditioner's real-world efficiency might differ from its advertised SEER rating due to:
- Quality of installation (ductwork, sealing, airflow)
- Climate conditions (hotter climates see greater savings from high-SEER units)
- Maintenance and regular servicing
- Home insulation and airtightness
- Thermostat settings and household usage patterns
To fully benefit from higher SEER systems, ensure proper professional installation and regular maintenance.
SEER Rating Frequently Asked Questions
In general, a higher SEER rating correlates to higher energy efficiency. Today's HVAC and AC units carry a minimum rating of 13 in the northern U.S. and 14 in the southern U.S. (the U.S. Department of Energy enforces this at the regional level)(1), but this number can exceed 20 in some of the most capable units. One thing to keep in mind when understanding SEER ratings is that there is a significant amount of variability involved based on your installation, usage and environment.
What is considered a good SEER rating will depend on where you live and what your cooling needs are. For homes in hot climates like the southern U.S., although you can use a 14, we often see a good SEER rating between 16 - 21. In the cooler climates like the northern U.S., a good SEER rating starts at 13 and often going to 16 - 18 is enough, but can go all the way up to 21, as well. Keep in mind that SEER ratings are based on optimal conditions, so your system's efficiency may be not as good as the rating depending on a variety of factors.
When compared to older units, newer models will generally provide an appreciable SEER-rating upgrade. For example, you can expect a SEER rating in the single digits from some older A/C units, so upgrading to a newer one should provide a higher operational SEER rating (or ratio). Over a long enough time horizon, this kind of upgrade will pay off - it's only a matter of figuring out how long until you recoup your investment. And tax credits and manufacturers' rebates are also often available to further boost your savings.
SEER stands for Seasonal Energy Efficiency Ratio and the higher the rating, the more efficient a system is. Assuming units are similarly sized, we can do some simple calculations to figure out the difference in energy efficiency between a 16 SEER and a 14 SEER unit.
Consider two units of similar size. 14 SEER: 24,000 BTUs per hour / 14 = 1,714 watts per hour; 16 SEER: 24,000 BTUs per hour / 16 = 1,500 watts per hour. The 16 SEER unit would use 214 fewer watts of electricity per hour than the 14 SEER unit.
Assuming an energy cost of 20 cents per kw, we can calculate how much it costs to run each unit per hour. 14 SEER: 1.714 kw x 20 cents per kw = 34.28 cents per hour; 16 SEER: 1.500 kw x 20 cents per kw = 30 cents per hour. The 16 SEER unit costs 4.28 cents less per hour to operate than the 14 SEER unit.
Four hours a day x 125 days a year = 500 hours.
14 SEER: 500 hours x 34.28 cents per hour = $171.40 per year; 16 SEER: 500 hours x 30 cents per hour = $150.00 per year.
The 16 SEER unit will save approximately $21.40 per year in energy costs.
While the higher rating is going to function more efficiently, this is only in truly ideal and identical environments. If you're most concerned about the financial component of it, you'll need to weigh all costs and operational considerations. If you strictly are choosing between the more efficient of the two systems, then the higher rating is a reliable indicator of energy efficiency.
(1) Department of Energy. CAC Brochure. Informational Brochure. PDF. Accessed 16 July 2020. https://www.energy.gov/sites/prod/files/2015/11/f27/CAC%20Brochure.pdf
Upgrading Your AC's SEER at HVACDirect.com
If you’re ready to experience greater energy efficiency, lower electric bills, and improved home comfort, upgrading your air conditioner’s SEER rating is an excellent investment. HVACDirect.com offers a wide selection of high-quality, high-SEER AC units at competitive prices, making it easy to find the perfect system for your home's specific needs and budget.
Our HVAC experts are ready to help guide you through the selection process, ensuring you maximize both your immediate and long-term savings. Visit HVACDirect.com today to upgrade your home comfort and start saving!
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SEER Ratings Guide
SEER stands for Seasonal Energy Efficiency Ratio and was defined by the Air Conditioning, Heating, and Refrigeration Institute. The SEER rating of a unit is the cooling output of the system during a typical cooling season divided by the total electric energy used in that same period. In the United States, we measure cooling by British thermal units or BTUs.So you may be asking why you need to know about SEER ratings. The biggest thing that a homeowner needs to take away from this is that the higher the SEER rating, the more efficient the unit is. Let's compare a 13 SEER and 16 SEER 2 ton air conditioning units. By dividing the BTUs per hour by the SEER rating, we can get the watts per hour used by each unit. So: 13 SEER: 24,000 BTUs per hour / 13 = 1,846 watts per hour 16 SEER: 24,000 BTUs per hour / 16 = 1,500 watts per hour
Now that we have our watts per hour, we can calculate our costs per hour by multiplying our watts per hour by our electricity cost. Let's assume that our electricity costs 20 cents per kilowatt hour. 13 SEER: 1.846 kw x 20 cents per kw = 36.92 cents per hour 16 SEER: 1.500 kw x 20 cents per kw = 30 cents per hour
We now have the operating cost per hour, but let us compare the yearly usage savings between the two units. Let's assume that the air conditioner will run 4 hours a day for 125 days a year. We can then figure out that the unit will run for 500 hours a year and can then multiply that by the cost per hour to operate the unit. 4 hours a day x 125 days a year = 500 hours 13 SEER: 500 hours x 36.92 cents per hour = $184.60 per year 16 SEER: 500 hours x 30 cents per hour = $150.00 per year
So in this scenario, the 16 SEER unit would save the homeowner roughly $34.60 a year on the electric bill. That might not sound like much, but when you factor in the savings for 15 years, that $34.60 per year ends turns into $519 of savings and would cover the increased price of the more efficient system.
SEER Rating Frequently Asked Questions
What is a good SEER rating for an air conditioner?In general, a higher SEER rating correlates to higher energy efficiency. Today's HVAC and AC units carry a minimum rating of 13 in the northern U.S. and 14 in the southern U.S. (the U.S. Department of Energy enforces this at the regional level)(1), but this number can exceed 20 in some of the most capable units. One thing to keep in mind when understanding SEER ratings is that there is a significant amount of variability involved based on your installation, usage and environment.
What is considered a good SEER rating will depend on where you live and what your cooling needs are. For homes in hot climates like the southern U.S., although you can use a 14, we often see a good SEER rating between 16 - 21. In the cooler climates like the northern U.S., a good SEER rating starts at 13 and often going to 16 - 18 is enough, but can go all the way up to 21, as well. Keep in mind that SEER ratings are based on optimal conditions, so your system's efficiency may be not as good as the rating depending on a variety of factors.
Is a higher SEER rating worth it?
When compared to older units, newer models will generally provide an appreciable SEER-rating upgrade. For example, you can expect a SEER rating in the single digits from some older A/C units, so upgrading to a newer one should provide a higher operational SEER rating (or ratio). Over a long enough time horizon, this kind of upgrade will pay off - it's only a matter of figuring out how long until you recoup your investment. And tax credits and manufacturers' rebates are also often available to further boost your savings.
How much more efficient is a 16 SEER vs. 14 SEER?
SEER stands for Seasonal Energy Efficiency Ratio and the higher the rating, the more efficient a system is. Assuming units are similarly sized, we can do some simple calculations to figure out the difference in energy efficiency between a 16 SEER and a 14 SEER unit.
Consider two units of similar size. 14 SEER: 24,000 BTUs per hour / 14 = 1,714 watts per hour; 16 SEER: 24,000 BTUs per hour / 16 = 1,500 watts per hour. The 16 SEER unit would use 214 fewer watts of electricity per hour than the 14 SEER unit.
Assuming an energy cost of 20 cents per kw, we can calculate how much it costs to run each unit per hour. 14 SEER: 1.714 kw x 20 cents per kw = 34.28 cents per hour 16 SEER: 1.500 kw x 20 cents per kw = 30 cents per hour The 16 SEER unit is costs 4.28 cents less per hour to operate than the 14 SEER unit.
Four hours a day x 125 days a year = 500 hours 14 SEER: 500 hours x 34.28 cents per hour = $171.40 per year 16 SEER: 500 hours x 30 cents per hour = $150.00 per year The 16 SEER unit will save approximately $21.40 per year in energy costs.
While the higher rating is going to function more efficiently, this is only in truly ideal and identical environments. If you're most concerned about the financial component of it, you'll need to weigh all costs and operational considerations. If you strictly are choosing between the more efficient of the two systems, then the higher rating is a reliable indicator of energy efficiency.
(1)Department of Energy. CAC Brochure. Informational Brochure. PDF. Accessed 16 July 2020. https://www.energy.gov/sites/prod/files/2015/11/f27/CAC%20Brochure.pdf