What is SEER Rating? Energy Efficiency Ratings Explained

What is SEER?

SEER stands for Seasonal Energy Efficiency Ratio. This rating measures the energy efficiency of air conditioning systems like central air and heat pump systems.

SEER is calculated by dividing the cooling output of the air conditioner over a typical cooling season by the energy used in watt-hours. The higher the SEER rating, the higher the energy efficiency of the HVAC system.

What is the highest possible SEER rating?

The highest possible SEER ratings can go up to 25 or higher as technology in the heating and cooling space advances and more energy-efficient units are developed.

What is considered a good SEER rating?

If you’re looking for a high efficiency air conditioner, a system with a SEER rating between 15-16 should do the trick. In 2023, the United States Department of Energy adjusted its minimum SEER rating requirements. In the southern United States, the new standards require a SEER rating of at least 15 for residential systems. In the northern United States, the requirement is a SEER rating of 14.

Benefits of a high SEER rating

1. Increased indoor comfort

Air conditioners with higher SEER ratings are more effective at cooling and reducing humidity in your home. That means you’ll feel more comfortable during those sweltering summer heat waves.

2. Reduced environmental impact

HVAC systems with good SEER ratings use less electricity to keep your home cool, so they can help you reduce your carbon footprint.

3. Lower electric bills

Not only does the lower kWh usage reduce your impact on the environment, but it leads to lower electric bills, too.

How does SEER rating impact your electricity bills?

As we mentioned earlier in the article, the higher the SEER rating, the more energy efficient the heating and cooling system. That means air conditioners and heat pumps with higher SEER ratings use less energy to accomplish the same level of cooling. This translates to lower electricity usage and lower electric bills for systems with higher SEER ratings.

In Texas, energy savings can be significant because there is a high demand for cooling needs for most of the year due to the climate.

Is SEER 20-25 worth it?

The air conditioners with the highest SEER ratings are the most expensive to purchase and install, but they do have the highest energy efficiency.

You may expect that the savings on your electric bills may make the high upfront costs worth it over time, but is it? That depends on a few factors:

1. Local energy prices

If you live in an area with high electricity prices, that could increase the worth of potential long-term electric bill savings from a higher SEER-rated system.

2. Rebates and incentives

Some electricity providers, utility companies, and state or local governments offer rebates and incentives that may reduce the initial cost of purchasing and installing a very high-efficiency heating and cooling system. Be sure to check for these savings opportunities before making a decision.

3. Historical electricity consumption and home size

If you typically consume a high amount of electricity throughout the year, then you stand to save more on your electric bill compared to someone who has a generally low kWh usage. Larger homes generally come with higher electric bills than smaller homes, so if you live in a small home, you likely would not need to invest in a system with a SEER rating as high as 20.

SEER is an outdated measurement system

As of January 1, 2023, the U.S. Department of Energy has implemented a new standard of HVAC efficiency measurement called SEER2. This rating more accurately reflects real-world conditions when measuring the efficiency of a cooling system.

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Written by Graham Lumley

Graham Lumley, Growth Product Manager at BKV Energy, leads digital and traditional marketing strategies, focusing on educating Texans about the state's deregulated energy market. With over 10 years of marketing experience, he creates content to help consumers understand and save on their energy bills, bringing a fresh and dynamic approach to the industry.