SEER2 Explained: What Fort Collins Homeowners Need to Know

A new air conditioner is a decision you have to live with for years. It is an investment in your future comfort. Understandably, most homeowners spend a significant amount of time researching different units to find the right one. 

If you’ve been looking at new ACs, you’ve probably encountered something that is known as the seasonal energy efficiency ratio (SEER) or SEER2. In more recent years, the earlier SEER rating was replaced by SEER2. 

It might be labeled differently, but the new rating still represents how efficient an AC is. Thanks to a 2023 federal efficiency standard update, there were a few changes made to how efficiency is measured that made the figure more accurate. By learning how SEER2 works, you can make smarter decisions about buying your next air conditioner or heat pump.

To get started, let’s get the SEER2 rating explained and compare it to the old SEER rating.

A Quick Refresher: What SEER Used To Mean

SEER is a measure of how efficiently an AC can move heat out of your home over the course of a full cooling season. When you have a higher SEER rating, it means your AC is more efficient and you’ll pay less in operating costs. 

When comparing SEER2 vs. SEER, one key difference is how they were tested. On the old SEER scale, tests occurred in laboratory conditions. Because of this, the tests didn’t fully reflect real-world scenarios.

What Changed: The SEER2 Standard Explained

Beginning on January 1, 2023, the U.S. Department of Energy replaced SEER with SEER2 as the new standard for testing and labeling heat pumps and air conditioners. This update involves a key change. Under the SEER2 rating, the test for external static pressure is more rigorous. 

Because of this added rigor, SEER2 ratings are better able to simulate real-world conditions. The actual ratings are slightly lower than the previous SEER rating, even when the same equipment is involved. For example, a previous SEER rating of 14 is the equivalent of a SEER2 rating of 13.4.

This updated AC and heat pump efficiency rating doesn’t mean your current air conditioner has suddenly declined in energy efficiency. All that has changed is how its existing efficiency is measured. The new SEER2 is better at matching real-world conditions, so you can get a more realistic understanding of how energy efficient each unit is.

New Minimum Efficiency Requirements for Colorado Homes

If you’re researching new AC efficiency standards in 2025, it’s also important to note that there are regional differences to consider. SEER2 divides the United States into three different regions: North, Southeast, and Southwest.

In Colorado, we are considered a part of the North region. For our area, ACs must have a minimum SEER2 of 13. Heat pumps must achieve a SEER2 rating of 14. 

These ratings aren’t optional when you get a new AC installation in Fort Collins. Every home is required to get an AC or heat pump that meets these minimum standards. Old equipment that has the previous SEER label cannot be sold as new. SEER-rated equipment is also not allowed to be manufactured anymore.

When researching energy-efficient air conditioners in Fort Collins, you don’t have to stick to the minimum SEER2 rating. Some of the most energy-efficient ACs have a 16 SEER2, 18 SEER2, or even higher. 

Besides saving you money on energy expenses each month, these high-efficiency units can often provide you with a utility rebate or federal tax credit. The Energy Efficient Home Improvement Credit will cover 30% of a new heat pump installation, up to $2,000. Additionally, Colorado offers a range of home energy rebates.

What This Means When Shopping for a New AC in Fort Collins

Besides knowing what the SEER rating means, it’s important to understand how this figure impacts your shopping experience. When you’re installing a new air conditioner or heat pump, the entire process can often feel overwhelming. Each manufacturer promises different benefits, and all of the unfamiliar terms can be intimidating.

With SEER2, you can simplify your entire shopping experience. As soon as you see the SEER2 rating, you can immediately compare two different units. It basically lets you compare apples to apples without having to understand any of the other terms or technology involved.

However, it’s important to note that there are actually two numbers that are listed on the labels. The old SEER number is directly next to the SEER2 number. These scales are completely different, so ignore the SEER rating completely.

By selecting a unit with a higher SEER2, you can save money over the long run on your energy bills. This is especially true because of the increasingly hot summer in Fort Collins. As energy costs rise, you won’t have to worry about utility increases.

Additionally, there are state and federal credits that can help you pay for your energy-efficient air conditioner in Fort Collins. As noted before, the Energy Efficient Home Improvement Credit can cover up to 30% of your heat pump costs. While there previously was a credit of up to 30% under the Inflation Reduction Act, this tax credit ended on December 31, 2025, for everything other than geothermal heat pumps.

Each county, city, and utility provider has different rebate programs. Before investing in a new heating, ventilation, and air conditioning (HVAC) system, it’s a good idea to verify the program’s existence and eligibility requirements first.

If you are struggling to figure out the minimum SEER2 requirements in Colorado or need help choosing an AC replacement, reach out to Balance Point for professional help. Our experienced HVAC technicians can evaluate your home’s size, ductwork condition, and usage habits to determine which system makes the most sense for your needs. 

How To Choose the Right SEER2 Rating for Your Home

While getting an energy-efficient air conditioner in Fort Collins is often a good choice, a higher SEER2 isn’t always necessary for every home. In some cases, there are alternative changes you can make that can improve your energy efficiency instead. To find out which option works best for your needs, consider scheduling a professional energy audit to find out how your home uses energy and what changes you can make. 

As you decide on the right SEER2 rating for your home, think about the following factors.

Review Your Home Size and Layout 

First, evaluate your home size and existing layout. A large home will benefit more from a higher-efficiency system because the AC has to run longer and harder. Multi-story homes also require extra work to cool each level adequately, so they may benefit from an energy-efficient AC replacement in Fort Collins.

Evaluate Your Duct Condition 

Next, look at your ductwork. If your ducts are in poor shape, getting a high SEER2 rating isn’t going to help. Undersized ductwork and leaky ducts do a poor job of transferring air. Even if you installed a 20 SEER2 system, you’ll still end up losing a significant amount of conditioned air through the leaks. You might spend less on energy than you would with a standard AC, but you still wouldn’t solve the underlying problem.

In an average house, around 20% to 30% of the air that moves through ductwork is lost through pinholes, gaps, and tears. The best way to solve this problem is by scheduling a professional duct cleaning and sealing appointment. By doing so, you can ensure your updated HVAC equipment achieves its maximum efficiency.

Consider Your Future Plans for Living at the Property

In the United States, the typical homeowner spends 12.3 years living in their home before they move. Before you invest in a high-efficiency AC, it is important to review your future plans. Getting a SEER2 rating of 17 or 18 costs more, so it makes more financial sense if you plan on living in your home for 10 years or more. If you plan on moving in the near future, continuing to use your existing unit or buying an inexpensive replacement likely makes more sense.

Look for Available Rebates and Incentives 

As we mentioned before, the federal government offers a major tax credit for homeowners who invest in energy-efficiency heat pumps. Locally, there are other rebates and incentives available as well. 

Through Xcel Energy, income-qualified individuals may be able to qualify for a rebate on energy-efficient heat pumps. Even if your earnings do not qualify you for this program, you may be able to save money through Xcel Energy’s Saver’s Switch program, which provides savings for using less air conditioning during peak energy consumption periods.

Ask for a Manual J Load Calculation

The Manual J load is essential for determining the number of British Thermal Units (BTUs) that your home needs. This calculation considers the number of occupants, ceiling heights, square footage, the number of windows, climate, and other factors to determine what equipment you’ll require.

Before you buy a new unit, ask your HVAC contractor for a Manual J load calculation. This figure allows you to size your unit correctly. Undersized ACs have to stay on longer to reach the appropriate temperature, leading to higher energy costs and increased wear. Meanwhile, oversized units reach the appropriate temperature and shut off quickly, resulting in more frequent cycling and premature wear. By getting the perfectly sized unit, you can maximize your energy efficiency, avoid unexpected repairs, and improve the comfort of your loved ones.

Why SEER2 Matters in Fort Collins

Getting SEER2 explained is about more than understanding the number on your HVAC label. In Fort Collins’ climate, the summers are known for being hot and dry. Often, our air conditioners run all the time from May through September. This type of non-stop effort can lead to high energy costs if you’re dealing with an inefficient HVAC system. 

Additionally, many of our local neighborhoods were built back in the 1970s and 1980s. As a result, these older homes have leaky duct systems that reduce their overall energy efficiency. Getting an excellent SEER2 rating might be a good step in boosting energy efficiency in these homes, but it isn’t the only one that is necessary. With the help of a professional duct evaluation, homeowners can maximize the energy-efficiency gains of their new AC replacement. 

Finally, Fort Collins residents also have to contend with our area’s high altitude. Most of this city has an elevation of around 5,000 feet, which results in a high impact on how HVAC equipment is commissioned and charged. Anyone who doesn’t understand this climate and altitude won’t be familiar with how to deal with these conditions, making it especially important to hire a local contractor.

At Balance Point, we are known for hiring experienced HVAC technicians. Because we are locally based, we understand the best SEER2 systems for area homeowners. From navigating budget concerns to performing a Manual J load calculation, we can assist with all of your HVAC needs.

Maximize Your Home’s Energy Efficiency

By getting the SEER2 rating explained, you can take the first step toward understanding the energy efficiency of potential AC replacements. 

Thinking about replacing your AC before summer? Get ahead of the rush. Contact Balance Point Heating, Cooling & Plumbing today for an honest assessment and a no-pressure quote.