Ever stared at a furnace sticker and wondered what all those numbers actually mean?
You’re not alone. The majority of homeowners see SEER2, AFUE, HSPF and UEF ratings and just tune out. However… those little numbers on the label determine:
- How much you’ll pay every month on energy bills
- How comfortable your home actually feels
- How long the equipment lasts before it gives up
Need help navigating the many ENERGY STAR efficiency ratings? This guide covers every energy efficiency rating you should know before purchasing new heating, cooling or water heating equipment. Read on…
Here’s What’s Coming Up:
- Why Energy Efficiency Ratings Matter
- SEER2 and EER2 — The Cooling Numbers
- AFUE — The Furnace Rating That Counts
- HSPF2 and Heat Pump Ratings
- UEF and Water Heater Installation Efficiency
- How To Pick The Right Rating For Your Home
Why Energy Efficiency Ratings Matter
Energy efficiency ratings are basically a “miles per gallon” sticker for your HVAC equipment.
The better the rating, the less energy your system will expend to heat you in the winter and cool you in the summer. The US Energy Information Administration says 52% of a home’s annual energy use is space heating and AC. That’s change you can believe in.
The same rule applies to water heater installation projects as well. Water heaters rank second in most homes when it comes to energy consumption, averaging about 12% of your total energy usage in your home. By installing a new water heater with the proper rating, the average family can save hundreds of dollars each year.
That’s why it’s important to consult with a trusted HVAC company in Lancaster, PA before any water heater installation or HVAC upgrade. A good contractor will walk you through what ratings you should care about for your particular home, climate and budget – they won’t just try to sell you the priciest thing in stock.
Most folks just buy whatever the salesperson recommends.
Big mistake.
SEER2 and EER2 — The Cooling Numbers
SEER2 stands for Seasonal Energy Efficiency Ratio 2.
SEER stands for Seasonal Energy Efficiency Ratio. It’s an efficiency rating that tells you how efficiently your air conditioner or heat pump cools your home throughout an entire cooling season. Consider it equivalent to an average MPG for all types of driving during the summer.
The 2023 federal standard now requires:
- Split system heat pumps: SEER2 of 14.3 or higher
- Split system air conditioners (north): SEER2 of 13.4 or higher
- High-efficiency models: SEER2 of 16 to 28+
Higher SEER2 = lower bills.
Jumping say from a old 10 SEER system to a 16 SEER system will decrease your cooling costs by nearly 38%. Wowzer!
EER2 is similar rating that looks at efficiency at one hot temperature (95°F). Good if you live somewhere that’s oppressively hot for long periods of year.
AFUE — The Furnace Rating That Counts
AFUE stands for Annual Fuel Utilization Efficiency.
It’s the percentage of your furnace fuel input that becomes useful heat. The rest is wasted up the flue.
Think about it:
- A furnace at 80% AFUE wastes 20% of every dollar of fuel
- A furnace at 95% AFUE wastes just 5%
- High-efficiency condensing furnaces can hit 98% AFUE
That difference is worth more than most homeowners understand. Over the lifetime of a furnace in a cold climate (say 15 years), that extra 15% efficiency equals thousands of dollars in fuel costs.
AFUE comes into play when shopping for a new furnace. In the United States, the minimum allowed AFUE for new residential gas furnaces is 80%. ENERGY STAR program certificates for gas furnaces start at 90% AFUE and higher.
HSPF2 and Heat Pump Ratings
Buying a heat pump? Then HSPF2 ratings are going to matter.
HSPF2 is short for Heating Seasonal Performance Factor 2. It is an efficiency rating that determines how well a heat pump heats the home during a heating season.
The current minimum HSPF2 is 7.5, but high-efficiency models can hit 10+ easily.
A higher HSPF2 means:
- Lower electric bills in winter
- Better performance in cold weather
- Faster payback on the more expensive equipment
Cooler climates require a minimum of HSPF2 of 9 to justify the investment into a heat pump. Below this your auxiliary heating strips will engage too frequently and costs will soar.
UEF and Water Heater Installation Efficiency
Here’s the rating most homeowners completely ignore…
For purposes of a water heater installation, the number you want to consider is UEF. That stands for Uniform Energy Factor. It replaces the old “Energy Factor” rating seen in years past.
UEF is a measure of how well your water heater converts energy into hot water.
Typical UEF ratings look like this:
- Standard electric tank: 0.90 — 0.95 UEF
- Standard gas tank: 0.60 — 0.70 UEF
- Gas tankless: 0.80 — 0.96 UEF
- Heat pump water heater: 3.0 — 4.0+ UEF
Wait, how is it possible to be over 1.0? Heat pump water heaters draw heat from the air instead of creating it from nothing. They transfer heat instead of creating heat, so they are much more efficient than electric resistance ones.
An ENERGY STAR qualified heat pump water heater can save households around $550 yearly compared to a conventional electric water heater. That’s crazy money just by changing one appliance.
Before contracting with anyone to install a water heater, inquire about the UEF rating. If the contractor does not know… choose another contractor.
How To Pick The Right Rating For Your Home
Higher ratings cost more upfront. Always.
But the right rating depends on a few things:
- Your climate: Cold winters = high AFUE/HSPF2. Hot summers = high SEER2.
- How long you’ll stay: Living there 10+ years? Spring for high efficiency.
- Your current bills: Higher bills mean faster payback on premium equipment.
- Rebates/tax credits: You can qualify for federal incentives that will cover a large portion of the initial expenses.
The biggest tip is sizing the rating appropriately to your home. You don’t need a 20 SEER2 air conditioner in Maine. An 80% AFUE furnace isn’t adequate in Minnesota.
Don’t overlook correct sizing either. A system that is too big or too small will consume significantly more energy than necessary, even if it has a fantastic efficiency rating. Proper sizing affects efficiency just as much as the rating does.
Bringing It All Together
Decoding energy efficiency ratings doesn’t have to be complicated.
Just remember these few things:
- SEER2 for cooling — higher is better, 14.3 minimum
- AFUE for furnaces — higher is better, aim for 90%+
- HSPF2 for heat pump heating — higher is better, 8+ for most climates
- UEF (Uniform Energy Factor) for water heaters — the higher, the better. This is especially important when purchasing any new water heater.
Correct ratings can save you hundreds (if not thousands) over the lifetime of the equipment. Incorrect ones will cause you to have higher bills and equipment that doesn’t perform like it should.
Take the time to understand these numbers before you buy.
Your wallet will thank you for it later.