Why SEER2 Doesn't Explain the Price Difference

Two quotes both specify 18 SEER2 systems. One costs $14,000, the other $20,000. This guide explains why identical efficiency ratings don't mean identical costs.

What SEER2 Measures

SEER2 (Seasonal Energy Efficiency Ratio 2) measures cooling efficiency under standardized test conditions. It indicates how much cooling output you get per unit of electricity consumed. Higher numbers mean better efficiency.

SEER2 doesn't measure comfort features, technology type, installation quality, or anything beyond cooling efficiency.

Technology Differences Within Same SEER2

Single-Stage vs Variable-Speed

Both single-stage and variable-speed compressors can achieve 18 SEER2, but they operate completely differently.

Single-stage 18 SEER2: Runs at full capacity when on, cycles on/off frequently, costs $3,000-4,500 for equipment

Variable-speed 18 SEER2: Adjusts capacity continuously, runs longer at lower speeds, costs $5,000-7,000 for equipment

Price difference: $2,000-2,500 for equipment alone, plus installation differences

Blower Motor Type

Air handler blower motors significantly affect comfort and efficiency but aren't reflected in SEER2 ratings.

• PSC motors: Single-speed, less efficient, noisier, cost $200-400
• ECM motors: Variable-speed, more efficient, quieter, cost $600-1,200

Price difference: $400-800 in equipment cost

Control Sophistication

Advanced controls optimize system operation but don't change SEER2 ratings.

• Basic controls: Simple on/off operation
• Communicating controls: Coordinate all components for optimal efficiency and comfort

Price difference: $300-600 in equipment and thermostat costs

Installation Scope Differences

Electrical Work

Variable-speed systems often require different electrical specifications than single-stage systems with the same SEER2.

Cost impact: $300-800 difference in electrical work

Ductwork Requirements

Variable-speed systems are more sensitive to ductwork restrictions. Quotes including ductwork modifications cost more than those assuming adequacy.

Cost impact: $500-2,000 difference in ductwork scope

Installation Complexity

Advanced systems with communicating controls require more installation time and expertise than basic systems.

Cost impact: $200-600 difference in labor

What's Included Beyond Equipment

Warranty Coverage

Extended warranties add cost regardless of SEER2 rating.

• Standard warranty: 5-year parts, 1-year labor
• Extended warranty: 10-year parts, 5-year labor

Cost difference: $400-800

Thermostat Quality

Thermostat sophistication affects total cost but not SEER2 rating.

• Basic programmable: $100-200
• Smart thermostat: $200-350
• Communicating thermostat: $300-500

Cost difference: $200-400

Permits and Inspections

Some quotes include permits, others don't. This has nothing to do with SEER2.

Cost difference: $100-300

Brand and Model Variations

Different Manufacturers

Multiple brands offer 18 SEER2 systems at different price points. Brand reputation, warranty support, and dealer networks affect pricing.

Cost variation: $500-1,500 for equipment at same efficiency

Model Features

Within the same brand, different models achieve 18 SEER2 with different feature sets.

• Sound ratings (quieter costs more)
• Cold-climate performance
• Humidity control features
• Smart home integration

Cost variation: $800-2,000 for feature differences

Regional Cost Factors

Labor Rates

Installation labor varies 30-50% by region regardless of equipment efficiency.

Cost impact: $1,500-3,000 difference for identical equipment

Permit Costs

Permit requirements and costs vary by jurisdiction, unrelated to SEER2.

Cost impact: $50-300 difference

What SEER2 Does Tell You

SEER2 ratings indicate:

• Cooling efficiency under test conditions
• Approximate operating cost differences
• Minimum efficiency standards met

SEER2 doesn't indicate:

• Technology type (single-stage vs variable-speed)
• Comfort features
• Installation quality
• Warranty coverage
• Total installed cost

Comparing Quotes with Same SEER2

When quotes have identical SEER2 ratings, compare:

• Compressor type (single-stage, two-stage, variable-speed)
• Blower motor type (PSC vs ECM)
• Control sophistication
• Specific brand and model numbers
• Installation scope (electrical, ductwork, line set)
• Warranty coverage details
• Thermostat quality
• What's included vs additional

When Higher Cost Makes Sense

Higher cost for the same SEER2 may provide value through:

• Better comfort from variable-speed technology
• Quieter operation
• More complete installation scope
• Extended warranty protection
• Better humidity control
• Longer equipment life from better components

When Lower Cost Makes Sense

Lower cost for the same SEER2 may be appropriate when:

• Basic features meet your needs
• Your home has simple installation requirements
• You don't need advanced comfort features
• Standard warranty coverage is adequate
• Regional costs are genuinely lower