My rough calculation is that the customer is saving $1000 a year based on .12/kWH. I do not know rates or how they vary in the year or the cost of the new system. This calculation can be pinned down pretty easily.
That said, I'm still not buying that cost reduction based on AC system alone. It's way too high and doesn't make sense. Something else changed in this home.
In this particular house, I am GUESSTIMATING $1000 a year savings. Typically, 14 to 16 seer is somewhere in the ballpark of 2-5 years to payback. It goes up quickly from there. If you sold a 22SEER system, it could easily be a 15-20 year payback on energy savings. That's why I'm not completely buying that the AC is the sole cause of this reduction in usage.
So, let's assume the old unit was operating at 10SEER and you installed a 22SEER, I'm still expecting 15 years to payback that energy savings and that's assuming the new system stays at 22SEER, which we know it won't. From a financial standpoint, this makes no sense. I do not install or recommend installing equipment that has a typical lifetime of 10 years, which I think is plenty fair if this is a heat pump that literally runs year round.
Sorry, I pounded this out really quick, so if my math and stuff it all wacky, that's why.
This is the same approach I take to roofing. I can sell really really cheap stuff, and I can sell really really high end stuff if someone just has to have it, but I have a middle of the road line that is what I consider to be the best value because I know how long that product will last on average in Texas.
I am NOT telling you this to berate you or your business, but I am telling you because I think it's important to be able to understand cost savings for a customer, after all, that is the sales pitch, right?
I installed a 16SEER unit to replace a 14SEER unit that was 13 years old. Do you know what the cost savings is on that? Nearly negligible and within the variance of other things I don't control. You want to know that for your customers.
That said, I'm still not buying that cost reduction based on AC system alone. It's way too high and doesn't make sense. Something else changed in this home.
In this particular house, I am GUESSTIMATING $1000 a year savings. Typically, 14 to 16 seer is somewhere in the ballpark of 2-5 years to payback. It goes up quickly from there. If you sold a 22SEER system, it could easily be a 15-20 year payback on energy savings. That's why I'm not completely buying that the AC is the sole cause of this reduction in usage.
So, let's assume the old unit was operating at 10SEER and you installed a 22SEER, I'm still expecting 15 years to payback that energy savings and that's assuming the new system stays at 22SEER, which we know it won't. From a financial standpoint, this makes no sense. I do not install or recommend installing equipment that has a typical lifetime of 10 years, which I think is plenty fair if this is a heat pump that literally runs year round.
Sorry, I pounded this out really quick, so if my math and stuff it all wacky, that's why.
This is the same approach I take to roofing. I can sell really really cheap stuff, and I can sell really really high end stuff if someone just has to have it, but I have a middle of the road line that is what I consider to be the best value because I know how long that product will last on average in Texas.
I am NOT telling you this to berate you or your business, but I am telling you because I think it's important to be able to understand cost savings for a customer, after all, that is the sales pitch, right?
I installed a 16SEER unit to replace a 14SEER unit that was 13 years old. Do you know what the cost savings is on that? Nearly negligible and within the variance of other things I don't control. You want to know that for your customers.