There are some changes coming up that could impact your decision
Homeowners whose air conditioners may be getting older should start to consider their options
before the end of the year. Beginning January 1, 2025, the cost to install a new heating and
cooling system is expected to rise by at least 10%. Additionally, opportunities to save on a new
system will be harder to find in 2025 as fewer rebate programs and tax credits are available.
WHAT DOES THIS MEAN TO ME?
Homeowners should evaluate how old their current air conditioner system is. If a system should
be replaced within the next few years, there are a few options available:
- Replace the System Before the End of 2024: Replacing a system now enables a
homeowner to take advantage of the current style of air conditioners that are more
affordable, and the rebate programs that are still available. - Wait to Replace the System Until 2025 or Later: Homeowners who wait to replace
their system will enjoy a more environmentally friendly air conditioner, but installation will
cost at least 10% more, and there will be fewer opportunities to save money, such as
rebates or tax credits.
HOW DO I KNOW IF MY SYSTEM IS OLD?
A well-maintained heating and cooling system has a life expectancy of 10-15 years. A
homeowner should start to consider their options when their system is over 8 years old,
especially if it has started to show signs of decline.
WHAT SHOULD I DO IF MY SYSTEM IS OLD?
Homeowners with aging heating and cooling systems should contact their local HVAC company
for information about how to prepare for the 2025 cost increases. An HVAC provider can help
create a customized plan to suit each individual’s unique situation. They may offer to replace a
system while opportunities to save money are still available, or they can help determine if it is in
a homeowner’s best interest to maintain their existing system.
WHY ARE PRICES INCREASING?
The Environmental Protection Agency (EPA) is implementing new regulations in 2025 that will
change the way air conditioners are made. The new standards are aimed at making air
conditioners more environmentally friendly*, setting the course for a brighter and healthier future
for our planet. However, the new technology will come with a rise in price, increasing the cost for
a new system by at least 10%.**
WHAT REBATE/TAX CREDIT PROGRAMS ARE AVAILABLE?
Ameren Missouri, a local utility provider, currently has rebates available ranging from $450 to
$1,300 to customers who use their services. This program, which has assisted homeowners for
over a decade, will not be available in 2025.***
Additionally, the Energy Efficient Home Improvement Credit (25C T ax Credit) can save a
homeowner anywhere from $600 to $2,000 when they install a new system.**** The tax credit
will still be available in 2025, but the standards for a system to qualify will be higher.
***** This means that a homeowner will need to purchase a higher efficiency system to meet the
requirements for the tax credit in 2025. Typically, the cost for a heating and cooling system rises
as efficiency increases, meaning a homeowner can expect to pay more for a system that
qualifies for the tax credit in 2025.
CONTACT YOUR HVAC PROVIDER TODAY FOR MORE INFORMATION
If you have any questions or would like help considering your options, please contact your
preferred heating and cooling company. In the St. Louis area, Level 9 Heating Cooling and
Plumbing is knowledgeable, professional, and eager to help you navigate these changes. Our
staff is ready to answer questions, or to provide you with a free estimate for replacement.
Contact the Level 9 office today at (636) 259-4252 for answers and assistance.
Sources:
*https://www.lennox.com/residential/buyers-guide/guide-to-hvac/glossary/r-410a-refrigerant
**https://www.lennox.com/residential/lennox-life/consumer/new-hvac-refrigerant-2025
***See Ameren Missouri Email “HVAC Rebate Program to End 12/31/24”
****https://www.irs.gov/credits-deductions/energy-efficient-home-improvement-credit
*****https://cee1.my.site.com/s/resources?id=a0V2R00000sUQbyUAG
