Shortage of required new eco-friendly refrigerates causing AC price increase
At the start of 2025, the U.S. government rolled out a new mandate requiring technicians to switch to a more eco-friendly refrigerant. It was supposed to be better for the environment, and it is, but it's causing headaches for contractors and homeowners.
In the midst of this new requirement, there is a trade war with tariffs affecting the supply and price of the new R-454B refrigerant.
The U.S. Environmental Protection Agency set these new requirements starting Jan. 1st. This new refrigerant has a lower global warming potential and lower flammability than the old ones. This comes from a law signed by President Trump back in 2020.
The problem is, there's now a shortage for both the refrigerant itself and the container for it. A two-headed monster.
If you can find them, one cylinder now costs hundreds of dollars more than normal. Some HVAC companies planned ahead, like Bell Brothers in Des Moines, but others haven't.
'The supply chain is going to be an issue if you didn't prepare for it because you won't be able to fix problems with new systems that people have paid for,' Bell Brothers Heating & AC owner Jason Gassmann said. 'That will be a huge issue as far as the pricing and stuff. Yes, the tariffs have affected the price of a cylinder of this refrigerant, because we are low on supply. It has gone up exponentially, which obviously impacts the financials of a business, which is which is hard on us.'
'I'm not going to lie. Being prepared is the best,' he added. 'Digging in and trying to find the supply you can is really what we're trying to do right now. We continue to keep looking for it to make sure we have it just in case something else happens.'
Bell Brothers takes hundreds of calls a day in peak season, and they say a new AC unit on average costs $10,000. Again, that number would be higher if the shortage continues beyond the current stock.
If your AC unit is still working well, you are not required to get a new unit with the mandated refrigerant. You can ride out the old unit until it stops working.
Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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