Building owners everywhere are upgrading their HVAC equipment to increase their energy savings. In 2017, section 179 of the Internal Revenue Code was amended to allow businesses to deduct up to $1 million of the overall HVAC cost for the system’s first year of use with a maximum of $2.5 million purchase price. Because these tax benefits will start to fizzle out in 2023, now is the perfect opportunity to save money when upgrading your system.
Increased Energy Savings
With higher energy efficiency comes automated controls technology that will allow you to better control your comfort–even through an app. Nowadays, technology can learn the habits of your occupants, anticipate what they need, and regulate temperature based on these patterns to help you reach maximum energy efficiency.
In the coming year, the trend of integrating HVAC with other building systems like lighting is also expected to increase. Renewable energy HVAC systems are on the rise as well, and the demand for variable refrigerant flow equipment is increasing.
Heat pump systems are also on the rise, as well as other technologies that are constructed for high performance and efficiency. While these systems may be more expensive upfront, the return on investment that you will receive in energy savings will help you gain back your initial investment and then some.
R-22 Phase Out
As of January 1, 2020, Freon, otherwise known as R-22, has been banned from production and importation nationwide due to its harmful effects on the ozone layer. Refrigerant 410A and other natural refrigerant solutions like ammonia will be used as an environmentally friendly replacement that will not deplete the ozone layer.
But what does this mean for you? What happens when you can no longer add Freon to your system when needed?
Systems that are already using R-22 can continue using up what’s left, but no new Freon will be available for purchase. Some systems might be able to be converted to use another refrigerant, although this may not be a permanent solution. For example, R-134a is an R-22 alternative that many systems can handle, but if no alternatives work, then replacing your system might be the right course of action, and doing it now before 2023 is a good idea.
At Star Service, our professional commercial HVAC contractors are ready and willing to help you transition into 2020 with ease. If you have any further questions regarding the phase out or how to increase your energy efficiency in the coming year, don’t hesitate to contact us! We proudly service three regions across Louisiana. Request a consultation with one of our professionals today.