THE cost of staying cool is climbing fast and homeowners could be stuck paying hundreds, even if their AC still works.
AC companies are sounding the alarm to try to avoid surprising customers with a huge bill.
The US-China trade war is making the problem worse since many components are imported from overseas (stock image)[/caption]
A nationwide shortage of refrigerant is plaguing the HVAC industry after a new federal rule forced a switch to chemicals considered more eco-friendly.
In Las Vegas, where summer heat can be deadly, some residents says it’s a crisis in the making.
” I can’t imagine living in Vegas and not having air conditioning,” local Kaili Bach told CBS local affiliate KLAS.
The Environmental Protection Agency rolled out new guidelines earlier this year requiring that low Global Warming Potential refrigerants be used.
James Langley, owner of a Las Vegas-based HVAC company called We Care Air, said the change is already making things harder – and more expensive.
“The mandate is calling for a lower GWP, which is a Global Warming Potential refrigerant. That’s what the 454B is,” Langley said.
“For us, our install guys have to use different installation tools and adjust our pricing.
“Prices of units have gone up by 30 to 40%.”
The new 454B refrigerant isn’t compatible with older AC systems, meaning repair options are limited for many households.
Even if your unit can be fixed, the shortage is creating room for price gouging.
“Let’s say, I came to your home and your compressor is out,” Langley said.
“We can change that compressor, but now there are those who will charge you double because your only alternative is to get a whole new system which is even more.”
Consumers are also facing yet another unexpected hurdle – there aren’t enough containers.
“It seems like they don’t have enough cylinders made to keep up with the demand of refrigerant that’s needed on all the new units,” Langley said.
The shortage of both refrigerant and the containers it’s stored in is tightening supply across the country.
That’s led to sharp markups in both replacement parts and new units.
“During the Biden administration, the EPA enacted an HVAC management rule,” Jorge Alvarez, co-founder of iGas USA, told NewsNation.
AC Price Hike
- New EPA rule bans old refrigerants
- Unit prices up 30–40%
- Older ACs may not be repairable
- Shortage driving up costs fast
“And why it was done, nobody knows. It was simply done in order to speed up the process, the EPA said.”
“Let’s speed it up. Let’s bring this change to happen within 15 months in lieu of 10 years or 20 years.”
The US-China trade war is making the problem worse since many components are imported from overseas.
A major portion of the HVAC supply chain depends on China, from refrigerant chemicals to the tools used to install them.
“Eighty percent of the refrigerant gas we need today is now coming from China. That’s 100% against Trump’s initiative,” Alvarez said.
Alvarez estimated refrigerant cost is up 600%.
“A 5-ton air conditioning system a year ago installed used to cost roughly $8,000 today,” he said.
“That exact same system is a minimum of $11,000.”
For now, Langley advises people not to panic.
“If your AC unit still works, there is no need to get a new unit with the mandated refrigerant,” he said.
