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If summer utility bills are going through the roof, replacing an old air conditioner with a new, energy efficient unit can save a substantial amount of money. The regulatory guidelines for many appliances, particularly air conditioners, have tightened and the new units use far less energy than the older models. The new SEER ratings (seasonal energy efficiency ratio) require that heat pumps or split air conditioning systems have a minimum SEER rating of 13, which uses 30% less energy than the SEER 10 air conditioners, according to the EPA.

New air conditioners are available with SEER ratings up to 18, and as electricity costs rise, replacing the lower rated central air conditioner with new ones will help families turn down the thermostat when the weather is hot, without the attendant sky high electric bill. There may even be tax credits at the state level to offset the cost of buying a more energy efficient unit. Current federal tax credits of 30% will expire on 12/31/10.

Not only do the tax credits help families afford better units, they help the environment as well. The EPA estimates that by 2030, the new standard will save tremendous amounts of energy. From 2006 to 2030, they calculate that the power saved using energy efficient air conditioners will equal the annual energy consumption of 26 million households in the US. The implications are many, and possibly the most important is that fewer power plants will need to be built to keep up with increasing energy demands.

Although there are no current federal tax credits for window air conditioners, they are an alternative to central air conditioning and cost considerably less to buy and operate than larger air conditioners. Small homes or homes located in climates where the heat and humidity are less intense can often be cooled comfortably using these units. Window units can easily be taken out when not needed, allowing the window to be closed during the cold winter months. Portable air conditioners are also an option, although they are not quite as energy efficient as the window units because their venting systems are not as direct as window air conditioners.

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