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HVAC efficiency rating label on modern air conditioning unit
Equipment Guide

SEER Ratings Explained: What Texas Homeowners Need to Know

Every AC advertisement mentions SEER ratings — but almost nobody explains what those numbers actually mean for your wallet.

What SEER Actually Measures

SEER = Total cooling output (BTU) ÷ Total electricity consumed (Watt-hours)

Over a typical cooling season

Simple Analogy

SEER is like MPG for your car. A 30 MPG car uses less gas than a 20 MPG car to travel the same distance. A 16 SEER AC uses less electricity than a 10 SEER AC to produce the same cooling.

SEER vs. SEER2: What Changed

January 1, 2023 Transition

DOE replaced SEER with SEER2 as the official efficiency metric. SEER2 tests use higher external static pressure (0.5" vs. 0.1"), representing more realistic installed conditions with actual ductwork.

SEER to SEER2 Conversion

SEER2 numbers are approximately 4.5% lower than equivalent SEER numbers:

Old SEER Rating SEER2 Equivalent
14 SEER 13.4 SEER2
15 SEER 14.3 SEER2
16 SEER 15.2 SEER2
18 SEER 17.1 SEER2
20 SEER 19.0 SEER2

Texas Requirements

Federal Minimum for Texas (South Region)

Effective January 1, 2023 — Equipment below these thresholds cannot legally be installed in Texas.

Equipment Type Capacity Minimum SEER2 Old SEER Equiv.
Split-system AC <45,000 BTU 14.3 SEER2 ~15 SEER
Split-system AC ≥45,000 BTU 13.8 SEER2 ~14.5 SEER
Heat Pumps All sizes 14.3 SEER2 ~15 SEER

Note: Existing systems aren't affected. Your 10-year-old 13 SEER system is legal to operate and repair — just not to replace with the same efficiency.

The Efficiency-to-Savings Math

Example: Upgrading from 10 SEER to 16 SEER

2,000 sq ft Texas home, 3.5-ton AC, 2,200 cooling hours/year, $0.12/kWh

Current (10 SEER)

$1,109/year

New (16 SEER)

$693/year

Annual Savings: $416

Savings by Upgrade Path

From To Annual Savings* 10-Year Savings
10 SEER 14.3 SEER2 $280-$350 $2,800-$3,500
10 SEER 16 SEER2 $350-$420 $3,500-$4,200
10 SEER 18 SEER2 $400-$480 $4,000-$4,800
10 SEER 20 SEER2 $450-$540 $4,500-$5,400
14 SEER 16 SEER2 $80-$120 $800-$1,200
14 SEER 18 SEER2 $140-$180 $1,400-$1,800

*Estimates for typical 2,000 sq ft Texas home, $0.12/kWh

Is Higher SEER Worth It?

Equipment Cost Premium

SEER2 14.3 (minimum) Baseline
SEER2 16 +$500-$1,000
SEER2 18 +$1,500-$2,500
SEER2 20+ +$3,000-$5,000

Simple Payback

14.3 → 16 7.5 years
14.3 → 18 11 years
14.3 → 20 16 years

Key Insight

Going from minimum (14.3) to moderate efficiency (16) often makes sense. Going to very high efficiency (20+) rarely pays back within equipment lifetime unless you have very high usage or electricity rates.

When Higher SEER Makes Sense

  • Very high usage (larger homes, extreme patterns)
  • Higher electricity rates ($0.15+/kWh)
  • Plan to stay 10+ years
  • Comfort priority (variable-speed = better humidity)

When Higher SEER Doesn't Make Sense

  • Near end of homeownership
  • Budget constrained (proper sizing matters more)
  • Low usage (smaller home, not home during day)
  • Rental property (won't capture savings)

Recommended SEER Targets for Texas

Priority Target SEER2
Budget-conscious 14.3-15 SEER2
Balanced 16-17 SEER2
Efficiency-focused 18-20 SEER2
Premium comfort 20+ (variable-speed)

Tax Credit Qualification

AC ($600 credit)

  • SEER2 ≥ 16
  • EER2 ≥ 12

Heat Pump ($2,000 credit)

  • SEER2 ≥ 16
  • EER2 ≥ 12
  • HSPF2 ≥ 9

Learn more about federal tax credits →

Stack tax credits with utility rebates from Oncor and CoServ to maximize your savings.

The Installation Factor

A poorly installed 18 SEER system may perform worse than a well-installed 14 SEER system.

Common installation problems that eliminate efficiency gains:

  • • Improper refrigerant charge (±5-20% efficiency loss)
  • • Duct leaks (15-30% efficiency loss)
  • • Undersized ductwork (restricts airflow)
  • • Improper airflow (reduces capacity and efficiency)

Find the Right SEER for Your Home

We'll help you choose the right efficiency level based on your usage, budget, and goals.

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