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Energy Savings Calculator

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Cooling Savings

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Use This ServiceTitan Energy Savings Calculator To Show Customers Real Savings

The costs of cooling (or heating) homes and businesses certainly adds up, especially when operating outdated equipment that constantly runs and struggles to keep up with demand. To help customers reduce those high-energy costs, explain the benefits of installing a new air conditioner or heat-pump system and show them how much money they can save with ServiceTitan’s SEER Energy Savings Calculator.

What is SEER?

SEER stands for Seasonal Energy Efficiency Ratio. 

Every air conditioner and heat pump comes with a SEER rating, which represents the unit’s energy efficiency. Generally, the higher the HVAC SEER rating, the more efficient the unit and the less energy it consumes. This means A/C energy savings for your customers, and a great selling point for your tech.

Since 2015, national energy efficiency standards require a minimum SEER rating on all air conditioners and heat pumps sold and installed. While older HVAC equipment may have an 8 or 9 SEER rating, modern units typically range from 13 or 14 SEER as a minimum (regulations vary by state) and 21 to 25 SEER as a maximum. 

Another round of national energy efficiency standards for residential central AC and heat pumps goes into effect in 2023.

But, there’s more to helping customers choose the best central air system or heat pump than simply picking a unit with the highest SEER rating. Our SEER Rating Calculator determines costs and A/C energy savings based on a specific HVAC formula.

How to Calculate SEER Energy Savings

To calculate SEER, ServiceTitan uses four factors to determine how much a customer could potentially save on energy costs by upgrading to a unit with a higher HVAC SEER rating:

  • SEER rating of customer’s current air conditioner or heat pump.

Look for the bright yellow and black “EnergyGuide” rating tag on the side of the customer’s outdoor condenser or indoor air handler; or record the system’s model number and serial number, then contact the manufacturer

  • Size (in tons) of customer’s current air conditioner or heat pump.

Although some companies refer to tonnage as the size of the A/C or heat pump, the term represents the unit’s cooling capacity—how much heat the unit removes from a house or business in one hour. For example, a 1-ton air conditioner can remove 12,000 BTUs of heat from a home in one hour, while a 2-ton air conditioner can remove 24,000 BTUs.

  • Cost of electricity per kilowatt-hour (Kwh) in your state. 

The national average of electric energy costs $0.14 per kilowatt hour. Click here to find your state’s current electricity rate.

  • Estimated annual cooling or heating hours for customer’s location.

The national average of unit operation equals 2,100 hours per cooling season. Seasonal changes and different climates for each region often dictate how many hours a customer’s system needs to run during a typical cooling season. If possible, review the past few years of the customer’s annual usage and figure the average operating time per year. 

The SEER Rating Savings Calculator then compares that existing data with a higher-efficiency air conditioner or heat pump to show customers A/C energy savings over a year, five years, or longer to demonstrate ROI on new cooling equipment. 

SEER Formula + Example

Simply put, the SEER rating calculation formula represents the ratio of the cooling output of an air conditioner or heat pump over a typical cooling season, divided by the energy it consumes in kilowatt hours.

Using the factors outlined above, we can utilize the SEER formula to compare the cost savings for a 3-ton A/C unit with an 9 SEER rating to a 3-ton A/C unit with a 16 SEER rating.

Assuming the electricity cost is $0.14 per Kwh and the A/C runs 2,100 hours per cooling season, the customer would save $514 per year on energy expenses.

A good SEER rating for most cooling systems ranges from 14 SEER to 16 SEER, with a higher-rated unit offering slightly more efficiency, but also costing a little more. Compare different HVAC SEER ratings and potential savings with our 14 SEER vs. 16 SEER calculator.

SEER Rating Chart

Think of an A/C SEER rating in terms of buying a car with a high MPG (miles per gallon). If you operate that vehicle exactly as the manufacturer intended, you’re likely to see value in fuel savings. If you drive it like Mario Andretti, those savings will quickly evaporate. The same goes for your customers’ home or business cooling systems.

Installing an incorrectly sized air conditioner or heat pump for a customer wastes time and money. An A/C unit that’s too large for the space might start short-cycling, which occurs when the compressor fails to run long enough to dehumidify the home or business. It causes the system to cycle on and off more than necessary. A too-small system also runs too much to match the thermostat cooling setting and wears out faster.

ServiceTitan’s SEER Savings Calculator takes the guesswork out of energy savings for your customers considering a new cooling unit, so you can clearly communicate the potential benefits to improve your company’s sales.

Want to grow your HVAC business? Learn more about what HVAC software can do for you by scheduling a demo today.

Disclaimer Statement

*The recommended values are in good faith and are solely meant for generic, informative purposes. We do not guarantee the accuracy of this information. Please note that other external factors may affect or falsify the recommendations. For accurate results, consult a professional.

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