Will a new HVAC system save me money?
Most likely, yes. It may also increase your comfort level. If you’re replacing your older, less efficient HVAC system with a new, highly efficient system, you can maximize your energy savings. That is especially true if you use a programmable or smart thermostat to raise or lower the temperature when you’re not home. The more efficient your system is, the more you can save on energy costs.
Look for an air conditioner or heat pump with high SEER2 ratings and a high HSPF2 rating for the heat pump. Look for a furnace with a high AFUE rating.
What is payback analysis and how do you calculate payback time?
To calculate the payback time or payback period of a new HVAC system, you need to know the initial cost of the system upgrade and the predicted cost savings of the upgrade. You will also need to know your current annual energy costs - go online to your energy provider and add up your monthly heating and cooling bills.
Your HVAC dealer can help you do these payback calculations. You can also look at HVAC products online, and they may list predicted annual savings (in a percentage) based on the energy efficiency ratings of the system when compared to an older system. For example, when it’s part of a matched system, our most efficient air conditioner, the XV20i TruComfort™ Variable Speed Air Conditioner, has an estimated yearly energy savings of 55%.
The calculation is Initial cost / Annual savings = Payback period. For example, if you spend $20,000 on a new HVAC system that is predicted to save you $3,600 per year on energy bills, the payback period is a little more than five years. The shorter the payback period, the more attractive the investment.
This calculation does not account for utility rate hikes, cost savings during the warranty period, the lifespan of the equipment, or HVAC maintenance costs.
Think of it as a return on investment (ROI) of the HVAC system. You get increased comfort (priceless), save energy (good for the planet), and reduce your energy bills.
Conduct a payback analysis on different systems
Work with your local Trane dealer to conduct a payback analysis on different systems. This can help you compare upfront costs with annual and total savings over the life of your system. Be sure to consider the value of tax credits, rebates, and other offers to offset the higher cost of a more efficient system.