Beginning January 1, 2025, certain technologies may no longer use high global warming potential (GWP) hydrofluorocarbons (HFCs) or HFC blends. Prohibitions apply to the manufacture, distribution, sale, installation, import, and export of products containing restricted HFCs and on the installation of new systems that use restricted HFCs.

Air conditioning efficiency, refrigerant changes, and supply chain problems are all interconnected topics that have an impact on the HVAC (Heating, Ventilation, and Air Conditioning) industry and the broader environmental and economic contexts. Here’s an overview of each of these aspects:

1. Air Conditioning Efficiency Changes:

Increasing energy efficiency in air conditioning systems has become a global priority due to the environmental and economic benefits it offers.

• Improved efficiency means that air conditioners can cool or heat spaces using less energy, resulting in reduced electricity consumption and lower utility bills.
• Modern air conditioning systems often feature advanced technologies, such as variable-speed compressors, smart thermostats, and improved insulation, to enhance efficiency.
• Government regulations and standards, like ENERGY STAR in the United States, have been implemented to encourage the development and adoption of more efficient HVAC equipment.

2. Refrigerant Changes

• Refrigerants are the substances used in air conditioners and refrigeration systems to facilitate heat exchange. Traditionally, hydrochlorofluorocarbons (HCFCs) and hydrofluorocarbons (HFCs) were widely used as refrigerants.
• Concerns about the environmental impact of these refrigerants, particularly their contribution to global warming and ozone depletion, led to international agreements like the Montreal Protocol and the Kigali Amendment. These agreements aim to phase out high-GWP (Global Warming Potential) refrigerants.
• As a result, there has been a shift toward using low-GWP alternatives, such as hydrofluoroolefins (HFOs) and natural refrigerants like carbon dioxide (CO2) and ammonia (NH3).
• The transition to new refrigerants has required changes in HVAC system design, manufacturing processes, and servicing practices.
• R-454B is the new refrigerant that has been selected by several manufacturers, including Carrier, Mitsubishi, Johnson Controls, Trane, and others. Carrier first announced the introduction of R-454B in ducted residential and light commercial packaged refrigeration and air conditioning products in 2018, with R-454B-based products launches starting in 2023. The EPA has approved the refrigerant for use in light commercial and residential applications for new equipment, and the major brands are already planning for new equipment in the future to use the “new-new” refrigerant on January 1st, 2023. The transition to R-454B will apply only to the sale of new air-cooled scroll chillers by the pending manufacturing cutoff date of January 1, 2024, and residential and commercial unitary products by the pending manufacturing cutoff date of January 1, 2025, for several brands.
• This new refrigerant can’t be used in older systems. As a result, the entire system must be changed when replacing a condenser or an air handler.

3. Supply Chain Problems

• The HVAC industry, like many others, has faced supply chain challenges in recent years. These problems are often related to disruptions caused by events such as the COVID-19 pandemic, extreme weather events, trade disputes, and transportation issues.
• Supply chain disruptions can lead to delays in manufacturing and distribution, shortages of components, and increased costs.
• These disruptions can affect the availability and pricing of HVAC equipment and materials, which, in turn, can impact construction projects and consumers looking to purchase new systems.
• To mitigate these challenges, companies have had to adopt more flexible supply chain strategies, diversify their sources of supply, and invest in inventory management and risk mitigation measures.

In summary, air conditioning efficiency improvements, refrigerant changes, and supply chain issues are interrelated aspects of the HVAC industry. Environmental concerns are driving changes in refrigerants, and improving efficiency is a key goal. However, supply chain challenges can impact the availability and cost of equipment and materials needed for these improvements, creating complex dynamics within the industry.

The result of a combination of the information stated above has resulted in an equipment cost increase of over 50% in the last 2 years.