There’s a change coming for the HVAC industry that business owners and facilities managers need to be aware of. Industry-standard AC refrigerants are being phased out by law, and new ones will be used in all new systems installed as of January 1, 2025.
How will that impact your business? It’s going to raise your service costs and impact your decisions about HVAC system replacement. Here’s what you need to know and steps you can take to prepare.
AC refrigerants: What’s changing and when
Refrigerant chemicals used in air conditioners and heat pumps are known to cause harm to the environment. Several years back, regulatory agencies phased out R22 (also known as Freon) due to its harmful effects on Earth’s ozone layer. Now, another widely used refrigerant, known as R410a, is being phased out as well due to its high global warming potential (GWP).
As of January 1, 2025, no new HVAC equipment can be installed using R410a. Production of R410a will phase down over a 10 year period, so for now it’s still available for servicing existing systems.
R410a will be replaced by two new refrigerants, R32 and R454B, which have significantly less GWP: as much as 78% lower. That’s a big win for the planet and for your company’s green initiatives.
However, you may find that it’s not a big win for your budget. Keep reading to learn why.
How the AC refrigerant change will impact your budget
1. More expensive new equipment
Come January 2025, new equipment that uses the new AC refrigerants will cost you about 25% more.
That’s because the new refrigerants, which are safer for the environment, are also mildly flammable. So HVAC equipment using R32 and R454B must have safeguards to prevent problems during usage and for technicians servicing the equipment.
What’s more, the new equipment is not much more energy efficient than recent R410a systems. So you won’t see a big reduction in your electricity usage to offset the cost.
2. Older systems can’t be retrofitted
When R22 was phased out, you may have been able to retrofit your older equipment to use R410a. That’s not the case now. Converting R410a equipment to use R32 or R454B will not be possible due to safety issues.
Another important caveat to know: you won’t be able to replace individual components of large systems gradually over time. You’ll have to replace the entire system at once so everything uses the same AC refrigerant.
3. Service costs will rise
As production of R410a declines, reduced supply will inevitably make the price go up, since the demand to repair equipment will still exist for some time. That will impact the cost of servicing older equipment.
You may also encounter difficulties getting components and parts for older equipment once manufacturers make the switch to producing only equipment that uses the new refrigerants. If OEM parts become unavailable or have unacceptable lead times, you may be forced to accept universal replacement parts.
Service providers will also need to train technicians to work with the new refrigerants and purchase new tools and supplies, all of which will add to service costs (for businesses and for homeowners).
Smart steps you can take to prepare now
1. Get a replacement system this fall
If you expect to replace a light commercial AC system in the near future, you can save big by installing an R410a system before the end of the year. Prices for R210a systems are lower to start with, and now manufacturers are offering deals on equipment they won’t be able to sell come January. Plus you can take advantage of rebates and tax deductions.
You’ll get the same 10 to 15 years of service from the equipment, and R410a will still be available for the foreseeable future for maintenance and repairs.
However, the timeline will be tight with lead times between 8 and 12 weeks for light commercial systems. So it pays to get started now.
And make sure you choose expert installers like Worthing Air to avoid disappointing results.
Learn more: Commercial AC Installation Mistakes That Cost You
2. Be vigilant about maintaining your current system
If your R410a-based system is not too old and is performing well, make sure you keep it in good shape for as long as possible.
A small investment in regular maintenance will help you put off the very large expense of replacing it with a system that uses a new AC refrigerant. It will also help to prevent expensive repairs.
If you don’t already have one, get a maintenance contract for the best price.
Learn more: 5 Ways Commercial HVAC Maintenance Saves You Money
3. Budget for higher service costs
When budgeting for 2025, be sure to plan for higher costs for HVAC maintenance and repairs, to avoid unpleasant surprises when the time comes.
Call Worthing Air today at 973-575-5276.
Worthing Air is the HVAC service partner more NJ companies rely on. Efficiency, quality, and integrity have been the backbone of our operation for over 40 years. Our technical expertise ensures safe, high-quality, and timely workmanship on every project.