Hello World! Welcome Friends! Well, it’s mid-January of 2020, so among all the headlines like the impeachment news, the Democratic primaries and the corona virus, one thing that may have escaped your attention is the Environmental Protection Agencies ban on R-22, commonly known to most people as Freon.
It certainly shouldn’t come to anyone’s surprise, because the EPA has announced its intentions to ban R-22 refrigerant, as have most countries in the world. The reason is that R-22 has been definitively shown to be a major factor in ozone depletion.
The EPA baby-stepped R-22 in a number of ways, but ultimately they set January 1, 2020 as zero hour for R-22 in the United States. What that means, is that no longer can R-22 be manufactured by any company in the U.S. and imports from another country such as Mexico are also banned.
So Zero Means Zero?
Not quite. Since R-22 can be stored in pressurized canisters without deterioration, an air conditioning company, or even a speculator, could buy several thousand, or even several million canisters of R-22, and more than a few speculators did buy and hold on to stocks of R-22, hoping it would rise in value.
You see, the 2020 ban is only on newly manufactured or imported R-22. If a company happens to have several hundred thousand canisters of R-22, those are perfectly legal to sell to individuals as well as to air conditioning companies.
In addition, reclaimed R-22 can also be sold. Say a company replaces its old HVAC system with a new and modern system. The R-22 in the old air conditioner can be reclaimed, then the tanks sent to the EPA for certification. So there are supplies of R-22 available.
The Price Of R-22
The price of R-22 has already gone up some. In November of 2019, you could buy tanks of gas on eBay as low as $9 per pound. Now, it’s between $14 and $15 per pound.
Let’s say then, you had an older air conditioning system for your business. A complete top off might require 10 to 12 lbs of R-22. But don’t forget, those in the HVAC business need to make a profit. So count on paying up to double the rate for R-22, plus a hefty service charge.
Will Air Conditioner Owner’s Become Hostage To Price Gouging?
Not likely, for the simple reason that the last air conditioners built in the U.S. to use R-22 were manufactured in 2010. And by 2015, HVAC units with newer and more friendly refrigerants came online.
So chances are good you don’t even have an air conditioning problem at all if you have a newer unit. How do you tell? There should be a sticker on your air conditioning unit indicating what kind of Refrigerant it uses. What you prefer not to see is one that says R-22.
So what can you expect when you have a service call with an HVAC company? Other than minor electrical problems, most service calls require a top off, which may mean 2 or 3 lbs of R-22. Yes, the price will be higher, but competition is so high among HVAC companies, that you will likely not need to pay but $50 or so more than you do now. However, there are serious considerations at this point to think about.
The Average HVAC Unit Is Expected To Last Only 10 Years Or So
Ten years is average, if you get 15 years, that’s great. But as air conditioning units are closed systems in which gas is shuttled at high pressure through narrow tubing, sooner or later, every unit, whether with the old R-22 refrigerant or newer, environmentally-friendly models, will start to develop leaks.
So if you have to top off your R=22 frequently, not only will it be more expensive, but it means you have a definite leak. At this point, both home and business owners have three choices:
- 1. Run their old system till it breaks or the costs of frequent maintenance are too high.
- 2. Consult an HVAC expert about converting your old system to one that runs the newer refrigerant. The problem here is that it takes an expert, it’s expensive, and some units can never be converted.
- 3. Buy a new HVAC system
Those with the older R-22 units are like the old oil change commercials where the mechanic holds out his hand and says, “Do it now, or pay me later.”
You may indeed be able to stretch out an old R-22 air conditioning unit for a year or two, but when it finally comes to saying, “no mas,” it may be at the worst possible time, like in the summer where a heatwave is in effect and you may be on a waiting list for two hot weeks or more before an HVAC company can fit you into their schedule.
The problem too, with buying a new HVAC system in the summer, is HVAC companies are flush with cash during that time of year, and maybe less likely to throw financial incentives for you to buy a new AC than in the winter.
And no doubt about it, HVAC systems are expensive. Most people don’t have the excess cash to buy one outright, so it’s either finance one from a bank or credit union or finance them through the HVAC company.
Looking At The Bright Side
There are a couple of bright sides to all this. One is that everyone, including our grandchildren, will live longer without R-22. The second is that new HVAC systems are much better at keeping down utility bills than the older models, so your utility bills are liable to go down, and your house will also stay cooler.
The third benefit is that there are substantial tax credits off your income tax for people buying new HVAC units. At least for the first year, your taxes could go way down, enough in itself, to partially fund your new HVAC unit. So consult your tax accountant on the pros and cons of a new unit.
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