Rising Costs and Regulatory Changes Drive Up HVAC Equipment Prices in the US

USA: In recent years, the cost of HVAC equipment in the US has risen sharply due to several factors, including increasing raw material prices, supply chain disruptions, higher consumer demand, and labor shortages. Additionally, regulatory changes have played a significant role, as stricter environmental regulations require the adoption of new low-GWP refrigerants and energy-efficient technologies, which are typically more expensive to produce.

A notable example of these regulatory changes is the introduction of mildly flammable (A2L) equipment. As part of the American Innovation and Manufacturing (AIM) Act, manufacturers will no longer be allowed to produce R-410A systems after December 31, 2024, prompting the rollout of new A2L units this year. While these new systems are designed to have a lower environmental impact, they are expected to come with higher price tags, increasing financial pressure on consumers.

Homeowners are already feeling the effects of these price increases. Empire Heating & Air Conditioning in Atlanta, Georgia, reported significant price hikes for HVAC systems. Since the beginning of 2020, equipment prices have surged by approximately 40%, and the average system price has nearly doubled. In early 2020, the cost of a residential replacement system was just over USD 6,000. Today, the average price for a new residential system replacement has risen to around USD 12,000.

Source: ACHR News