What’s the Buzz about Dry Shipped R22 Units?
Before we address the subject of Dry Shipped R22 Units, let’s take a look at where we are today.
Depending on who you ask, the economic outlook ranges anywhere from sluggish to hopeful. Many homeowners’ budgets are stressed by rising prices of fuel, food and comfort, and, at the same time, the values of their homes have dropped. As a result, homeowners anticipating continued energy sector price increases are reinvesting in energy and building envelope efficiency at record levels.
Even the government has embraced programs to help reduce our energy consumption. Historically high incentives are available through the federal government to reduce energy consumption in residences. Incentive dollars for equipment efficiency upgrades are prevalent in utility rebate programs and personal federal tax credits. At State levels, programs such as NYSERDA and the New Jersey Clean Energy Program, among many others, offer targeted prescriptive home efficiency remediation programs.
At ABCO, high efficiency R410a systems continue to be a majority of all R410 units sold; a trend that was sparked by the initial Federal ARRA Tax Credit Stimulus package in February 2009. Our reporting shows the additional costs associated with installing Luxaire high efficiency R410a equipment in the system sale approach is considered affordable more than 50% of the time.
Upgrading to modern and efficient residential air conditioning has required a complete R410a system retrofit approach since December 2009, when the Federal law mandating the end of manufacturing of pre-charged R22 units was enacted. Simply replacing failed outdoor units has become problematic, as many older coils and/or air handlers were installed for 10 SEER systems and are not compliant with higher pressures and operation characteristics of R410a. Replacing the indoor air handler can be an expensive and daunting project.
Along came Dry Charge units.
The Environmental Protection Agency ruling in 2009 was originated to curtail the use of R-22 through entire system installations. The ruling eliminated the manufacturing of pre-charged R22 unitary products after December of 2009. However, the manufacturing of AC and HP products designed for R22, shipped with a “dry” charge, such as Helium or Nitrogen, fell outside of existing laws. The Federal interpretation of these units is that they are considered a service component of an existing system. Select manufacturers and importers quickly took the opportunity to provide replacement dry charge AC units as an interim solution for sales in an uncertain economy.
Today we have more choices available than ever.
While the practice of installing replacement “dry” units can serve as a valuable short term solution for homeowners that cannot afford the new R410a system, in reality, we are delaying the inevitable by extending the life of a minimally efficient system, similar to replacing a leaking coil or failed compressor. However, assuming best practices are followed and the system is properly charged, the new outdoor unit can provide years of continued operation.
Another curve in the road.
The environmental community, and even some manufacturers, is seeking a ruling to end US production and importation of these dry units. This movement will likely not be addressed immediately.
As a result, we have two developing and surprising trends in mid-summer 2011:
- Price driven manufacturers will potentially sell up to 40% of their entire 2011 AC and Heat Pump production in base efficiency “dry” units – up to 600,000 units in total.
- When R410A products are installed, more than half the time 16 SEER systems are being chosen.
What does this all mean?
Although our national economic recovery has unfortunately been delayed, ABCO has continued to invest in supporting our customers with the best solutions. Dry charged residential AC and Heat Pump condensing units are readily available, providing an attractive economic solution.
One fantastic option is the Luxaire Guardian series. These models represent the smallest footprint in the industry for ease of installation, and since they have micro channel coils, field charging with R22 is fifty percent less expensive due to smaller operating charge.
The ultra competitive LX series Luxaire micro channel R410a AC condensing unit is another great choice. These models reach 16 SEER, and maximize the opportunity for rebates and incentives. Additionally, based upon continued high efficiency growth, ABCO introduced the Luxaire Acclimate Premium AL6B line up in May 2011. This product is a clear top of the line condensing unit at single stage affordability up to +17% SEER.
A newcomer to ABCO’s Luxaire product offering is the lower cost ECM X13 style air handling equipment, in both single and two piece cabinets, which assure our competitive system leadership position.
Whether your customer is a price buyer with immediate needs, or someone planning R410A system change out, the opportunity to service any customer is yours. Utilizing Luxaire’s expansive product offering, ABCO hosts the best solutions for any application.
So stay tuned, as they say, for the only thing certain is change!
Ken Kastl, VP HVAC Sales and Product Management
