What is the new Freon for 2023?

Karl Pomeroy, President and GM, Motili.

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If you’re a regular reader of my Forbes column, you know the upcoming January 2023 HVAC regulation changes and new minimum efficiency standards have been a key focus of mine for the past few months. In today’s environment of supply chain shortages, delays and rising prices, building owners and operators need to know about the effect the new minimum efficiency standards for heat pumps and air conditioners could have on organizations and homeowners. I believe these upcoming changes could have a significant impact on the environment and the budgetary bottom line, so it's important HVAC companies are ready as well.

As I have previously discussed, the new minimum efficiency standards for residential air conditioners will follow regional borders that were established in 2015. For air conditioners in the northern part of the U.S., the minimum efficiency will increase to 14 SEER; in the South, the minimum efficiency will increase 15 SEER. The new standards also "require an increase in the heating efficiency of air-source heat pumps—measured by the equipment’s heating seasonal performance factor," according to the U.S. Energy Information Administration. The minimum HSPF will increase from the current standard of 8.2 to 8.8.

Considerations For Building Owners

One of the points I want to reiterate about the regulation changes is that it is imperative building owners and operators are aware of which units they are purchasing and their install date. Before making any purchases, especially as we head in the spring and summer months, consider:

• If you are buying units based on pre-2023 standards, install them prior to December 31.

• The units you purchase should support the new minimum efficiency standards effective January 1.

Considerations For The HVAC Industry

If you are in the HVAC business, now is the time for field techs to educate themselves on the new minimum efficiency standards and what the rules are for the regions they service. It will also become increasingly important in the next few months for contractors to understand what stock is available or when it will become available—and to be confident about the timeline of delivery. As we get deeper into 2022, contractors will have to make educated choices about which units they will or will not be able to install with the January 1 deadline looming ahead.

From my perspective, product procurement will come with price increases that will likely continue to trend upward as the year goes on. I also expect supply chain issues to continue to impact product acquisition. I believe higher performance components, new fan systems and increased unit chassis sizes will bring a need for an increase in commodities, such as copper and plastic for newer, bigger systems. That equates to higher acquisition costs.

With this in mind, I believe the HVAC industry also must continue to educate its customers and potential customers, as these changes are just around the corner. Reach out to customers and ensure they understand the regulations for 2023 and beyond, ask about the condition of their in-place HVAC systems and consider offering to inspect it. These are additional ways industry leaders can deliver the message of change and the potential impact these new regulations could have on everyone, ranging from the single-family homeowner to the multi-family and commercial property owner.

One Final Note For HVAC And Refrigerants

The new HVAC unit regulation changes will likely be followed by more refrigerant changes in the future. To review, beginning in 2020, only recovered, recycled or reclaimed supplies of R-22, a hydrocarbon refrigerant, were and are available for legacy systems, and I'm finding the price for it continues to climb. I also expect a reduction in the availability of the R-410A refrigerant next year, as that's when the new HVAC standards kick in. As the HVAC industry goes through the process of transitioning to next-generation refrigerants, long-term planning and legacy unit replacement come into play.

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Air conditioning technicians and businesses should prepare now for a significant upcoming change in the HVAC industry: a new refrigerant.

R-454b will be the refrigerant for the next 15 years, but even though its use will not be mandated until 2023, installers and HVAC technicians should be ready to use it starting Jan. 1, 2022.

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“Manufacturers are starting to switch over,” said Bill Powers CFE, ServiceTitan’s Senior Industry Advisor. “People should be preparing and getting certified now. All new residential sales next year will have units that use the new gas.”

New refrigerant training and certifications will be required. Some classes have been created already. Powers said groups like the Air Conditioning, Heating and Refrigeration Institute (AHRI) and ESCO are already certified to offer classes, and NATE also will have certification testing.

People need to start preparing today for 2022,” Powers said.

Powers’ point that the changeover will start sooner than required is illustrated on Trane’s website. Trane is candid that it is making chillers, heat pumps and rooftop units that will use R-454b refrigerant.

R-454b will replace R-410a, which has been the primary refrigerant since 2008. The changes are prompted by ozone depletion, a factor in climate change. R-22 was used until 2008, but it contained chlorine, which damages the ozone when it leaks. R-410a lacked ozone and thus had less Ozone Depletion Potential (ODP), but it had Global Warming Potential (GWP) that was higher than R-22.

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R-454b, also known as Opteon XL41, has no ODP and GWP that is 78% lower than R410a. The Opteon website calls it “a refrigerant solution that offers maximum performance with minimal environmental impact.”

Businesses need to be laser-focused on building codes, Powers said. Those codes will have to be updated to accept the new coolant. Installers are advised to communicate regularly with local building departments to make sure the code has been changed before proceeding with units that use R-454b.

It would not be wise to think the changeover won’t take place sooner rather than later. Powers said the business will be driven by standards enacted by the state of California that take effect in 2023. Once systems are made for California, manufacturers will make them for the rest of the country. 

R-22 and R-410a will remain usable options, though R-22 will be phased out by 2030. Powers said that honesty with customers is vital. It would not be ethical for any technician or company to tell consumers that R-22 and R-410a are illegal and their existing system cannot be repaired. That would be a deceitful way to sell a more expensive new system.

“Integrity is a must in our industry,” Powers said. “Hold all your people to the highest standard possible. No scare tactics. Keep our business clean.”

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