January 12, 2026

Featured Article: Justifying Replacement of Existing HVAC Equipment with Above-Code Higher Efficiency Equipment

Article Abstract

Traditionally, contractors have not provided estimates of energy cost savings in their equipment replacement proposals to justify the cost premium of higher efficiency equipment. There is no argument that the higher efficiency equipment can reduce utility bills for the building owner over the life of the equipment; however, providing an estimate of how much cost savings can be achieved is rarely addressed. As a result, the building owner is unable to make an informed decision and usually results in the selection of the lowest cost equipment that meets local energy code requirements. A contractor able to provide a cost-benefit comparison, e.g., high efficiency, above-code versus standard efficiency, code-compliant equipment, will have a distinct advantage over contractors unable or unwilling to provide this level of analysis. While this may present a challenge, there are third party firms that can assist contractors in filling this market gap by providing energy savings estimation services.

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