Inflation has spread to your air conditioner, and federal regulations are the cause
Fourth of July kicks off the hottest two-month stretch of the year in the United States, and for much of the nation, it is hard to imagine getting through it without air conditioning. But millions of homeowners whose systems conk out will soon learn that air conditioning has joined the long list of items hit by inflation.
Whether you choose to repair or replace your existing unit, the price tag is going through the roof. And our own federal government is a big part of the problem. It’s enough to make a 90 degree day seem even hotter.
The single biggest price boost in recent years came from the Department of Energy. The Biden administration’s home appliance regulators at DOE have been on quite a rampage as of late, with pending or recently finalized rules impacting stoves, dishwashers, furnaces, ceiling fans, water heaters, refrigerators, light bulbs, and washing machines.
But the worst of them all may be an efficiency regulation for residential central air conditioners that was finalized back in 2017 and went into effect on Jan. 1, 2023. We are in the second summer under this rule, and it has single-handedly boosted the cost of a new air conditioning unit by at least $1,000, according to installers.
And DOE isn’t even the biggest air conditioning hater in D.C. The Environmental Protection Agency holds that honor. For decades, the EPA has implemented statutory limits on supplies of refrigerants used in nearly all residential systems based on claims that these refrigerants damage the environment. Some of the targeted refrigerants are subject to production quotas, while others can no longer be made at all.
Needless to say, dwindling refrigerant supplies mean higher prices. One prohibited refrigerant that once sold for a dollar per pound now wholesales for more than $30 per pound. Another has tripled to over $10 per pound. The retail cost to homeowners is even higher, and a home system can require up to 15 pounds of refrigerant.
Overall, fixing a system that has lost refrigerant from a leak typically costs several hundred dollars more than it did before the feds created artificial scarcity. In some cases, such repairs are so expensive that homeowners are better off scrapping their old system and buying a new one.
The EPA has also saddled those who repair air conditioners with reams of red tape that make the job more time consuming and necessitate additional equipment and training, all of which translates into higher bills for homeowners trying to keep cool. More such measures have been proposed.
It will only get worse in future summers. Another EPA regulation, applicable to all residential systems manufactured in 2025 and after, requires that only agency-approved climate-friendly refrigerants be used. Get ready for another price boost. Several manufacturers are guessing at price increases in the 10% or higher range — well into the hundreds of dollars. And that number could end up being even higher — the above-mentioned DOE rule that went into effect last year turned out to be at least at least five times higher than originally estimated by the agency.
To make the ride on the inflation train even more painful, the electricity needed to run air conditioners is also getting more costly. This includes a 5.9% annual boost as of May, according to the latest Bureau of Labor Statistics data. As with the rise in equipment and maintenance costs, the increased electric bills to run your air conditioner are due in part to ill-advised climate policies.
Read the full article at the Washington Examiner.