Ok this is a biggy, please stay with me on this. In general, the more efficient the unit, the more it will cost initially. However, the more efficient, more expensive unit will actually save you money over time as it requires less fuel to cool your home. If you are concerned about efficiency, watch for the Energy Star Label. Cooling efficiency for air conditioners is indicated by a SEER (Seasonal Energy Effiency Rating). The SEER rating tells you how efficiently a unit uses electricity: the higher the number, the greater the efficiency. The typical SEER rating of units manufactured prior to 1992 is about 6.0. In 1992, the government established a minimum cooling efficiency standard for units installed in new homes at 10.0 SEER. In January 2006, the new standard for central heat pumps became in effect requiring heat pumps to meet a minimum of 13 SEER and 7.7 HSPF.
Heating Efficiency is easy to describe and understand when using fossil fuel…If you are paying 1.00 for Natural Gas, Propane or Oil, and you have a 80% Gas furnace, you will receive .80 cents in your home for heat and 20% will go out the chimney to assisting in helping keep the birds warm. (ha ha). Now, if your have a 95% Ultra efficient Furnace, .95 cents heats your home and only .05 cents goes out side….poor birdies!