Rebates and energy Savings

If you are in the market for a new furnace or air conditioner, we can help.

First, AC Dave will design a heating and cooling system based on your needs. Especially keeping your budget in mind and giving you the peace of mind you deserve. In addition, it is important to choose a brand with a history of quality, performance, and reliability. Furthermore, customer satisfaction is as important as the quality of the installation and continuing support. For additional information, please call us today at 661-270-1961 or email dave@acdave.com.

Are you considering replacing your furnace, evaporative cooler, or air conditioner with an energy-efficient model? Check the links below to find out if you qualify for a rebate.

So Cal Gas Rebates So Cal Edison Rebates

energy star https://www.energystar.gov/about/federal_tax_credits

https://www.ladwp.com/

Facts on Air Conditioner, Furnace, and Heat Pump Efficiency Standards

Energy savings with higher SEER rating residential or commercial installation

When looking for a new HVAC system, you’ll need to be able to tell your SEER from your EER. In 2023, HVAC efficiency standards underwent some major changes—which happens every few years as the U.S. Department of Energy (DOE) requires manufacturers to step up their HVAC game. While the changes won’t really affect homeowners who aren’t looking to replace their system, there are a couple of things you need to know for 2024.

What Are HVAC Energy Efficiency Standards?

credit for article to Angi-website Since 1992, the DOE has regulated HVAC equipment with minimum efficiency requirements. This pushes manufacturers to make the most energy-efficient products possible, and homeowners can enjoy HVAC tax credits by upgrading their systems. Overall, it’s better for the environment and your utility bills. Certain metrics measure HVAC efficiency. Most homeowners are familiar with minimum SEER ratings, but there are a handful of different metrics depending on the type of HVAC system:

Seasonal energy efficiency ratio (SEER): What does SEER mean in practice? This metric measures how efficiently your AC unit or heat pump cools your home. The higher the rating, the better the efficiency.
Energy Efficiency Ratio (EER): Similar to SEER, EER measures the cooling capacity of your AC or heat pump. Specifically, it weighs the cooling output (BTU) against the energy input (watts).
Heating seasonal performance factor (HSPF): This factor measures how much energy your heat pump uses to heat your home.
Annualized fuel utilization efficiency (AFUE): Furnaces are rated by how much heat they produce per dollar of fuel.

You may notice these ratings called SEER2, EER2, or HSPF2. This refers to the 2024 HVAC efficiency standards and reflects the most current testing conditions. Remember that different regions have different standards even though the DOE regulates efficiency on a national level. Understanding your local requirements is the best way to reduce HVAC energy costs and overall energy usage.

What Are the New HVAC Regulations for 2026?

A new HVAC system must meet the requirements below to be sold or installed in the United States. Efficiency ratings are regional, so the new HVAC regulations for 2024 depend on where you live. New air conditioners in Northern regions must have a minimum SEER rating of 14. In Southern regions, the minimum SEER rating is 15 for most units. Nationwide, new air-source heat pumps are subject to a minimum 8.8 HSPF, while new furnaces must have at least an 81% AFUE. The DOE also introduced new testing conditions, so you’ll notice a lower minimum number for SEER2, EER2, and HSPF2 compared to the equivalent SEER, EER, and HSPF.

Minimum SEER Rating for 2026 in California

As of January 1, 2026, California requires a minimum efficiency of 14.3 SEER2 (which is roughly equivalent to the old 15 SEER standard) for residential split-system air conditioners under 45,000 BTU/h, and 13.8 SEER2 for units 45,000 BTU/h and above. Heat pumps must meet a minimum of 14.3 SEER2. [1, 2, 3, 4]

Key 2026 California HVAC Requirements:

Metric: The industry uses SEER2 (Seasonal Energy Efficiency Ratio 2), which has higher testing standards than the old SEER metric.
Minimums (Southwest Region – CA included):
- Split-System AC (< 45k BTU): 14.3 SEER2 (15 SEER).
- Split-System AC ((ge ) 45k BTU): 13.8 SEER2 (14.5 SEER).
- Heat Pumps: 14.3 SEER2 (15 SEER).
Compliance: These are mandatory minimums for all new residential installations.
Rebates/Tax Credits: Systems rated 17 SEER2 or higher often qualify for better incentives, including the TECH Clean California rebates and federal 25C tax credits

HSPF for 2026

In 2026, new air-source heat pumps must meet a minimum efficiency standard of 8.8 HSPF (or 7.5 HSPF2 under the updated, more rigorous testing procedures). These requirements, established by the DOE in 2023 and continuing through 2026, focus on reducing energy consumption and transitioning to low-GWP refrigerants. [1, 2, 3, 4]

Key 2026 Heat Pump Efficiency & Standards

Minimum Standards: Nationwide, new split-system heat pumps require a minimum of 8.8 HSPF and 14.3 SEER2.
HSPF2 Metric: The industry uses HSPF2, which better reflects real-world performance; look for units with an HSPF2 of 7.5 or higher.
Performance Tiers: Energy Star Most Efficient 2026, for example, requires higher standards, such as HSPF2 (ge ) 8.0, to ensure maximum energy savings.
Regional Differences: While 8.8 HSPF is a national minimum, stricter local energy codes may apply in areas like California.
Refrigerant Shift: Units in 2026 are transitioning to lower Global Warming Potential (GWP) refrigerants like R-32 or R-454B. [1, 2, 3, 4, 5]

Incentives and Trends in 2026

Tax Credits: Many high-efficiency heat pumps still qualify for federal tax credits of 30% of the cost, up to $2,000 per year.
High-Efficiency Systems: Premium inverters often reach HSPF2 ratings of 10-12, providing significant heating energy savings, especially in colder climates.
Installation Discipline: Because higher-efficiency units are less forgiving of poor installation, experts emphasize the need for [Manual J load calculations] and proper sizing to ensure performance. [1, 2, 3, 4]

2026 Furnace Rating Standards California

he 2025 California Energy Code, effective Jan. 1, 2026, accelerates the transition to electric heating in new buildings by setting high efficiency standards that heavily favor heat pumps over gas furnaces. While not a total ban on residential gas furnaces, the new standards make installing them more expensive through stricter performance requirements, aiming for all-electric, decarbonized homes. [1, 2, 3, 4]

Key 2026 HVAC Standards & Changes

Heat Pump Priority: The code strongly encourages heat pumps for space and water heating in new single-family and multifamily homes, effectively making them the standard, rather than gas furnaces.
Commercial Shift: New commercial construction and renovations, such as schools and offices, are pushed toward high-efficiency heat pump systems, replacing many gas-fired rooftop units.
New Refrigerant Rules: As of Jan. 1, 2026, all new HVAC installations must use low-global-warming-potential (GWP) refrigerants, primarily R-454B, replacing the older R-410A standard.
Pool Heater Requirements: New construction or major renovations cannot use gas-only pool heaters; systems must use electric heat pumps or solar thermal technologies.
Existing Home Exception: Homeowners can still replace a broken gas furnace with another gas furnace in existing homes through 2029. [1, 2, 3, 4, 5, 6]

Impact on Homeowners

Higher Initial Costs: HVAC systems in 2026 may cost more due to the new efficiency and refrigerant requirements.
Long-Term Savings: Despite higher upfront costs, the new systems are designed to offer lower energy bills and improved indoor air quality.
Compliance Penalties: Failure to follow the new Title 24 standards can lead to significant penalties. [1, 2, 3, 4]

For more detailed information, review the full 2025 Energy Code from the California Energy Commission. [1, 2]

California’s Energy Code Update Guides the Construction of …
Jan 13, 2026 — WHAT YOU NEED TO KNOW: The 2025 update of the California Energy Code went into effect Jan. 1, 2026 for new buildings and major ren…

California Energy Commission (.gov)
California 2026 HVAC Regulations Overview
The 2026 HVAC regulations in California aim to boost energy efficiency, cut greenhouse gas emissions, and tighten rules on refrige…
HVAC Replacement Costs in California: What to Expect in 2026
In 2026, California HVAC replacement costs generally range from $8,000 to over $16,000 for a full system, heavily influenced by strict Title 24 energy standards, high labor rates, and new refrigerant regulations. Standard systems usually cost $8,000–$12,000, while high-efficiency inverters range from $11,000–$16,000+. [1, 2, 3]

Key 2026 Cost Drivers & Expectations

Average Cost: Most homeowners are paying in the $10,000–$16,000 range for a complete, code-compliant installation.

Title 24 Compliance: Mandatory HERS testing and duct sealing/insulation can add $500–$1,500 to the total cost.

Regional Differences: Costs in the Bay Area, Los Angeles, and San Diego tend to run toward the higher end ($13,000+) due to labor demand.

Equipment Trends: Increasing shift towards heat pumps due to state decarbonization goals.

Incentives: Federal tax credits ($2,000+ for heat pumps) and TECH Clean California rebates can significantly lower net costs. [1, 2, 3, 4, 5, 6]

Estimated Price Breakdown (2026)

Standard Efficiency System: $10, 000 – $12,000

High-Efficiency Inverter System: $11,000 – $16,000+

Ductwork Replacement depending on how many duct runs : +$4,100 – $9,000

Basic Change-out: $11,000 + (unit + labor only) [1, 2, 3]

It is highly recommended to get multiple quotes, as California labor costs can vary significantly, and ensuring the contractor is licensed to perform required, mandated upgrades is essential

New Testing Conditions for HVAC

As of January 1, 2026, the HVAC industry in the United States has transitioned to stricter testing conditions that prioritize real-world performance, significantly lower Global Warming Potential (GWP), and increased minimum energy efficiency standards. The core change is the mandatory, nationwide use of A2L (mildly flammable) refrigerants (such as R-454B or R-32) and the full adoption of SEER2, EER2, and HSPF2 metrics. [1, 2, 3, 4]

Here are the new testing conditions and standards as of 2026:

1. Mandatory A2L Refrigerant Transition (Low-GWP) [1, 2]

Starting January 1, 2026, all new residential and light commercial HVAC systems installed must use approved low-GWP refrigerants, primarily R-454B (GWP 466) or R-32 (GWP 675). [1, 2]

No Retrofitting: Existing R-410A systems cannot be converted to A2L; they must be replaced with new equipment designed for these refrigerants.
Safety Features: New systems are equipped with mandatory safety sensors, leak detection systems, and modified ventilation requirements.
Technician Training: Contractors must be trained in ASHRAE 15 and UL 60335 standards to handle these “mildly flammable” refrigerants. [1, 2, 3, 4, 5, 6]

2. Rigorous M1 Testing (SEER2/EER2/HSPF2) [1]

The M1 testing procedure, introduced in 2023 but reaching full maturity in 2026, forces manufacturers to test equipment under more realistic, harsh conditions. [1]

Higher Static Pressure: Testing now occurs at 0.5 inches of water gauge static pressure—five times higher than the previous 0.1-inch standard. This simulates the actual airflow resistance of home ductwork.
Lower Numerical Ratings: Because the test is tougher, a unit previously rated 14 SEER might only achieve 13.4 SEER2, even though the physical efficiency is identical.
Regional Minimums (2026):
- Northern Region: Minimum 13.4 SEER2 for split systems.
- Southeast/Southwest Region: Minimum 14.3 SEER2 for systems under 45,000 BTU, and 13.8 SEER2 for larger units.
- Heat Pumps: Minimum 14.3 SEER2 (15.0 SEER) and 7.5 HSPF2 (8.8 HSPF) nationwide. [1, 2, 3, 4, 5]

3. Increased Efficiency Targets and “Smart” Requirements [1, 2, 3]

2026 standards align with higher efficiency tiers, pushing for more advanced technology. [1]

Target Efficiency: New standards often target 17 SEER2 and 12 EER2 for split systems to qualify for tax credits.
Grid-Interactive Capability: Units are increasingly required to support demand response, allowing them to slow down during peak grid strain.
Variable-Speed Technology: Because the M1 test penalizes single-stage systems, inverter-driven (variable-speed) systems have become the standard for meeting new criteria, improving humidity control. [1, 2, 3]

4. California 2026 Title 24 Updates

California’s 2025 Energy Code (effective Jan 1, 2026) is more stringent, making heat pumps the default heating and cooling option. [1, 2]

Higher Minimums: California requires 15 SEER2 for residential AC and 14 SEER2 for heat pumps.
Ventilation Rules: Stricter requirements for outdoor air intake locations and mandated demand-controlled ventilation (tied to (CO_{2}) levels). [1]

5. Increased Repair Costs for Old Systems [1]

While R-410A systems can still be repaired, the cost of the refrigerant is rapidly increasing due to a 375% increase since 2020, following the pattern of the old R-22 phase-out. As of 2026, significant leaks in older systems often make replacement with new A2L-compliant systems more economical. [1]

Homeowners can still install R-410A units manufactured before 2025 during 2026, though the EPA is focusing enforcement on manufacturers rather than installations. [1]

2026 National Standards for Split System Heat Pumps

As of January 1, 2026, split-system heat pumps must comply with stricter efficiency standards using SEER2/HSPF2 metrics and adopt low-GWP refrigerants (such as R-32 or R-454B). New ENERGY STAR Version 6.2 requirements set higher benchmarks (approx. 17 SEER2/12 EER2 for split systems), and all systems must now support demand response. [1, 2, 3]

Key 2026 Standards & Requirements

Efficiency Metrics (SEER2/HSPF2): The industry fully uses SEER2 (Seasonal Energy Efficiency Ratio 2) and HSPF2 (Heating Seasonal Performance Factor 2), which utilize 0.5 inches of water gauge static pressure to better reflect real-world ductwork conditions.
Minimum Standards (Federal): Minimum efficiencies vary by region, typically requiring higher SEER2 than in 2023.
ENERGY STAR 6.2 (Effective Feb 2, 2026):
- Split-System Minimums: (geq 15.2 text{ SEER2}), (geq 11.0 text{ EER2}), (geq 7.8 text{ HSPF2}).
- Cold Climate Criteria: COP at (5^circtext{F} geq 1.75) and at least (70%) of rated heating capacity at (5^{circ }text{F}) compared to (47^{circ }text{F}).
Refrigerant Shift: New systems must use low-GWP (Global Warming Potential) refrigerants, primarily A2L refrigerants like R-32 or R-454B, which are mildly flammable and require special handling/safety training.
Demand Response: Units must have capabilities allowing them to slow down during peak grid strain. [1, 2, 3, 4, 5, 6, 7]

Regional Minimums (SEER2)

North: (13.4 text{ SEER2}).
Southeast: (14.3 text{ SEER2}) (< 45k BTU/hr) or (13.8 text{ SEER2}) ((ge ) 45k BTU/hr).
Southwest: Similar to SEER2 requirements as the Southeast, with stricter EER2 requirements. [1]

2026 Purchasing Considerations

System Costs: Higher-efficiency units may cost $350-$1,500 more.
Tax Credits: Many systems compliant with 2026 standards will qualify for energy tax credits.
R-410A Inventory: While new manufacturing of R-410A systems is phased out, existing inventory can still be sold and installed under “sell-through” provisions, but this inventory will diminish significantly. [1, 2, 3, 4]

What These New Standards Mean for Homeowners

As of January 1, 2026, new California energy standards (2025 Title 24 Code) mandate stricter efficiency for new construction and renovations, heavily pushing for all-electric appliances, heat pumps, and stricter window performance (U-factor 0.30 or less). These changes aim to lower long-term energy bills by thousands, though they may increase initial construction costs. [1, 2, 3, 4, 5]

Key Implications for Homeowners in 2026:

Mandatory Heat Pumps & Electric-First: New homes are expected to use electric systems for space and water heating, with gas infrastructure being phased out or restricted.
Stricter Window & Insulation Standards: New windows must meet higher insulation performance standards (U-factor 0.30/SHGC 0.23), requiring better-than-standard products.
Solar & Storage Mandates: New construction must be solar-ready, with designs anticipating photovoltaic systems and battery storage.
Lower Operating Costs: Despite higher upfront costs, these standards are projected to save homeowners roughly ($25,100) in energy bills over 30 years.
EV-Ready Mandates: Multifamily buildings require Level 2 EV charging readiness, and detached homes may face similar incentives to install them.
Wildfire & Climate Resilience: Homes in high-risk zones will face stricter “home hardening” requirements regarding materials and ventilation. [1, 2, 3, 4, 5]

While these are California-specific updates taking effect in 2026, similar trends toward higher efficiency and electrification are occurring nationally, driven by energy independence goals

Frequently Asked Questions

Which SEER rating qualifies for tax credit?

What products are eligible? Effective January 1, 2025, split system central air conditioners must meet SEER2 ≥ 17.0 and EER2 ≥12.0 to be eligible. Packaged central air conditioners must meet SEER2 ≥16.0 and EER2 ≥11.5 to be eligible.

Is an AC unit with a higher SEER rating worth it?

If you’re planning an AC replacement, choosing an AC with a higher SEER rating may save you money in the long run. Tax credits could cover as much as 30% of the job, and you’ll notice smaller utility bills (particularly if you live in a hot climate where you need to constantly run the AC). Generally, you can expect to pay between $350 and $1,500 for each SEER rating increase. Weigh the cost against your typical utility bill to figure out what’s worth it to you.

Are AC units with a lower SEER rating being phased out?

Yes, HVAC units with lower SEER (Seasonal Energy Efficiency Ratio) ratings are being phased out in the U.S. as of January 1, 2023, with stricter minimums now enforced. Minimum efficiency requirements have increased, with Northern regions moving to a 14 SEER minimum and Southern/Southwest regions increasing to 15 SEER for most new installations.