Realtor® Services | What is SEER?

Effective January 2006, the Federal Government requires all air conditioning systems that are manufactured to have a Seasonal Energy Efficiency Ratio (SEER) of 13 or higher. Prior to this mandate the industry standard was a minimum energy efficiency rating of 10 SEER. The higher the SEER rating, the more energy efficient a unit is. The objective of this new law is to reduce national energy consumption and the need to build more energy production facilities that generate pollution.

• Effective January 23, 2006 No HVAC manufacturer can manufacture equipment with less than a 13 SEER rating
• Companies and homeowners may continue to make repairs on their existing AC equipment, even if it is not a 13 SEER unit, as long as parts are available and the unit can be repaired.
• The new 13 SEER law does not prevent AC manufactures from manufacturing parts for older AC systems. Parts will likely be available for older AC systems for several years to come. The new 13 SEER law does not force home warranty companies to replace older 10, 11 and 12 SEER rated systems when they fail and only require repair. Our contract states, The Company will determine whether a covered system or appliance will be repaired or replaced.
• The new law only requires that AC manufacturers produce AC units that are 13 SEER or higher after January 2006. Thus, SEER 10, 11, and 12 systems that came off the manufacturer production lines before that date may still be legally sold, purchased and utilized by consumers until all of those resources are fully depleted.

• This new law will have a significant impact on the home warranty industry and homeowners that use air conditioning systems in their homes. It is important to note that the new law does not require homeowners update older AC systems that are still operational.
• The cost of replacement to First American will be 60% or greater than systems not rated at 13 SEER
• Due to the size of 13 SEER units, a replacement could mean significant structural modifications not covered by the First American Warranty

For details of the Federal Mandate, please click here.

For more questions you may have, please find answers here.