SEER 20 vs SEER 23 — Annual Savings & Payback Calculator
How This Was Calculated
Annual cost = (BTU × hours) / (SEER × 1000) × rate. Cost at SEER 20: $378/yr. Cost at SEER 23: $328.7/yr.
- BTU
- System capacity: 36,000 BTU
- Hours
- Annual cooling hours: 1500 hrs
- Rate
- Electricity rate: $0.14/kWh
- SEER_A
- Baseline efficiency: 20
- SEER_B
- Upgraded efficiency: 23
Important Considerations
As of January 1, 2023, the US DOE requires SEER2 ratings for new equipment. SEER2 uses a more realistic external static pressure (0.5 in.w.g. vs 0.1 in.w.g.) making SEER2 ratings roughly 4–5% lower than SEER for the same equipment. When comparing old SEER with new SEER2, multiply SEER by 0.95 for an approximate equivalent. Minimum efficiency standards: 14 SEER2 (13.4 SEER2) for single-stage central AC in most regions.
Annual savings shown assume constant electricity rate, fixed cooling hours, and steady-state equipment performance. Actual savings vary with local climate, utility rate structure (time-of-use vs flat rate), equipment sizing, thermostat setpoints, and building envelope. Equipment at part-load may perform better or worse than nameplate SEER. Two-stage and variable-speed systems often exceed their rated SEER in real-world conditions.
Each kWh of electricity in the US produces approximately 0.855 lbs of CO2 equivalent (EPA eGRID national average). Higher-efficiency equipment reduces both energy bills and carbon emissions. Utility rebate programs (ENERGY STAR, state programs, federal 25C tax credit up to $600) can offset the premium for high-SEER equipment. The 25C credit applies to equipment meeting CEE Tier 1 or higher efficiency levels.
Annual energy cost calculated as: (BTU × cooling hours) / (SEER × 1,000) × electricity rate. SEER (Seasonal Energy Efficiency Ratio) ratings per AHRI Standard 210/240. CO2 reduction estimated using EPA eGRID US average emission factor (0.855 lbs CO2/kWh). Note: SEER2 is the current rating standard as of January 2023.