When it's time to replace an air conditioner or add one during a remodel, one of the first decisions is which system to buy. Two units can both cool your home just fine, yet cost very different amounts to run. The difference comes down to efficiency.

Pay on the front end, or pay on the back end

A lower-efficiency air conditioner costs less to buy and install. It works, and it will keep your home cool. The catch is that it uses more electricity to do the same job, so you pay more on your electric bill every month it runs.

A higher-efficiency system costs more up front, but it uses less electricity, so your monthly bills are lower for the life of the system.

In other words, you either pay on the front end with a higher purchase price, or you pay on the back end with higher utility bills. With Southern California summers and rising electricity rates, the back-end cost of a low-efficiency unit can add up quickly.

What SEER2 ratings mean

Air conditioner and heat pump efficiency is measured with a rating called SEER2. The higher the SEER2 number, the less electricity the system uses to cool your home.

• Since January 1, 2023, new central air conditioners and heat pumps installed in California and the rest of the Southwest must meet a minimum of about 14.3 SEER2 for most home-sized systems.
• Higher-efficiency systems are available well above the minimum, often with variable-speed compressors that run more quietly and keep temperatures more even.
• Heat pumps also carry an HSPF2 rating, which measures heating efficiency. Higher is better.

The right rating for your home depends on how much you run your AC, your home's size and insulation, and your budget. We help you compare the up-front price against the long-term operating cost so you can make the choice that makes sense for you.

Why heat pumps are one of the best options

A heat pump is an air conditioner that also runs in reverse to heat your home. Instead of burning gas in a furnace, it moves heat using electricity. In Los Angeles's mild climate, that makes heat pumps one of the most efficient ways to both heat and cool a home.

• One system for heating and cooling. A heat pump replaces both the AC and the gas furnace.
• Very efficient in mild climates. Heat pumps can deliver more heat energy than the electricity they use.
• No combustion in the home. No gas burner, no flue, and no carbon monoxide risk from the heating system.
• Pairs well with solar. If you have or plan to add solar panels, a heat pump lets your solar power your heating as well as your cooling.
• Rebates may be available. California utilities and state programs often offer incentives for heat pumps. Availability changes, so we check what applies when we plan your project.

California is moving toward electric

California has been steadily moving homes away from gas appliances. The state's Energy Code now favors heat pumps in new construction and requires new homes to be ready for electric appliances. Regional air-quality rules are tightening limits on emissions from gas heating equipment, and the state is developing standards to phase in zero-emission space and water heaters.

Some cities, including Los Angeles, adopted all-electric requirements for new buildings, although several of those rules have been paused or repealed after a 2023 court ruling. Requirements can differ by city and project type, and they continue to change. Choosing a heat pump today means you won't need to replace a gas furnace if rules tighten later.

Heat pump vs. gas furnace at a glance

• Gas furnace plus AC: two separate systems, a gas line and flue, and both a gas bill and an electric bill.
• Heat pump: one system for heating and cooling, all-electric, and ready for solar and future code changes.

Top: heat pump outdoor units on a brand-new home. Below: heat pump air handlers installed and suspended overhead with new ductwork, keeping the floor clear and the system out of the way.

HVAC as part of your remodel

When you remodel, build an addition, or add an ADU with Blueprint Builders, we include the heating and cooling as part of your complete project. We size the system for your home, plan the ductwork or ductless layout, coordinate any electrical panel upgrade it needs, and handle permits and inspection, all under one contract.

Planning a remodel or upgrade?

Blueprint Builders is a licensed, bonded, and insured design-build general contractor (CSLB #841284) serving Los Angeles since 2004. Call us at (310) 751-6444 or email hello@blueprintbuilders.com to schedule a consultation. We'll help you compare systems, up-front costs, and long-term energy savings.

This article is general information. Efficiency standards, rebates, and local gas and electric requirements change over time and vary by city, so we confirm current requirements for every project.