Appliance Design - September 2007 - (Page 92) ASSOCIATION REPORT: ARI Efficiency Debate Should Include System Cost Stephen R. Yurek President Air-Conditioning and Refrigeration Institute L et’s leave aside for a moment that, in the wake of continued high energy demand, high prices and a supply chain that continues to be strained, Congress is again considering new energy-efficiency standards for appliances. We’ll get to that shortly. For now, let’s focus on what products, exactly, should be considered “appliances” and what should not, such as installed central air conditioning systems. That question might seem trivial, but it is an important one when efficiency standards, not to mention recycling and producer take-back laws, are concerned. If you ask the average Joe on the street “what an appliance is,” he’ll more than likely tell you “a refrigerator or a stove or a dishwasher.” Also known as “white goods,” these products are generally considered to be portable in the sense that they can be The argument that higher efficiency mandates are justified because costs can be recouped overlooks one very important point: Not everyone can afford to spend more upfront to replace an AC system. installed and moved by consumers. The products manufactured by ARI members, such as residential and commercial air conditioning systems, are considered part of the building envelope, part of the installed mechanical system of the house, much like a furnace or water heater. Therefore, the appropriate efficiency level of a home’s central air conditioning system should be determined as one factor in the overall efficiency level of the home or building itself. Central AC systems, unlike appliances such as refrigerators, microwaves, and clothes washers, are installed and removed by contractors, not consum92 applianceDESIGN September 2007 ers. The residential and commercial air conditioning systems and commercial refrigeration equipment manufactured by ARI members contain copper, aluminum, and steel; all of which are commodities that are valuable on the secondary market, which means they are largely recycled and only a small portion require landfill disposal. ARI’s members constantly strive to develop the highest quality, most cost-effective and innovative products for their customers. Unfortunately, price is often overlooked in the energy efficiency debate. The push for ever-higher efficiency mandates appears on the surface to be beneficial. After all, who could be opposed to reducing energy use? The higher up-front costs of more efficient equipment are sometimes recouped in lower energy costs over the life of the product. While that might be true in some instances, it is not always the case. The argument that higher efficiency mandates are justified because costs can be recouped overlooks one very important point: Not everyone can afford to spend more upfront to replace an AC system. Instead, they opt to repair their current system, which is probably not as efficient as a new central AC unit would be. Because of the higher cost of 13 SEER systems compared to the 10 SEER systems they replaced, roughly 25 percent of consumers have opted to repair rather than replace their systems since January 2006 when the new 13 SEER mandate took effect. Consider the impact on energy savings if 25 percent of people keep their old, less energy efficient equipment. A recent study showed that if 18 people are in the market for a new central AC system and just one of them opts to repair his current system, the energy savings of the other 17 are negated. ARI and its members are very much in favor of saving energy. In fact, the products manufactured by our members get more efficient, on average, every year. But actions have consequences, and the best of intentions can sometimes go awry, as is the case when consumer goods are suddenly made financially unavailable to certain segments of the population. The interest of our members is, and will always remain, to ensure the widest selection of high quality, efficient products for our customers at an affordable price. < www.applianceDESIGN.com http://www.appliancedesign.com
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