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As Americans prepare for Memorial Day, which marks the unofficial beginning of summer, they might face disappointing news regarding their home air conditioning unit maintenance.
The cost of servicing and installing AC units has surged partly due to the Biden administration’s last-minute decision to accelerate the shift to a new refrigerant gas, which has led to a supply shortage.
“It’s shaping up to be a hot summer, and sadly, many will bear the financial burden,” shared Jorge Alvarez, co-founder of a Tampa, Florida-based air conditioning company, with DailyMail.com.
The issue is a shortage of a newly mandated refrigerant that began with an Obama administration effort to curb damage to the planet’s ozone layer.
That brought an effort to phase out R-410A, the commonly used refrigerant used as an alternative to another ozone-depleting gas.
In October 2024, the Biden administration accelerated a phase-out for the switch to a new refrigerant, R-454B.
It’s considered effective, but it is also flammable, which has required changes to AC units.
But there are only two U.S. manufacturers with a patent to make it, said Alvarez, whose company iGas manufactures AC equipment and sued to try to roll back the phase-out.
‘There simply isn’t enough refrigerant to go around,’ he said. ‘It’s so bad that the contractors today are forced to either pull the refrigerant out of the system, and introduce a new refrigerant that’s not even intended to be used with that system, and voiding the warranty, because there simply isn’t enough refrigerant to go around,’ he said.
He says it has meant an 18 to 23 week back order for his clients – which means people wanting to get a new system might have to wait until October.
Refrigeration costs for older units has spiked 600 percent, he said.
A phase out of refrigerant meant to lower the amount of greenhouse gases has led to a shortage and price hikes
‘If you spend $10,000 to $15,000 on air conditioning system today, imagine the contractor telling you, “I don’t have enough refrigerant to make it work on this brand new unit”. That’s the reality of what’s happening today. We’re not even in the summer yet,’ he said.
He shared cost estimates for a similar five-ton AC unit for the same Florida apartment complex – one last spring, and one this year. Last year’s proposal was for $8,570. This year’s came in at $11,513 – an increase of 34 percent.
Honeywell told contractors in April to prepare for a 42 percent price increase.
That presaged a move by some contractors to look overseas for resupply – but that causes them to run smack into some of President Donald Trump’s tariffs.
Much of the supply comes from China, although shipments from China through Mexico appear to be getting around some of them.
‘Dear Valued Customer,’ the firm wrote its clients. ‘Due to unprecedented demand for 454B, which cannot be met with domestic production alone, we are forced to source a significant portion of the supply through international markets to meet North American market demand.’
‘It’s going to be a hot summer and unfortunately a lot of people are going to be paying the price,’ Jorge Alvarez, the cofounder of an air conditioning company based in Tampa, Florida
Limited supply has led to increased costs, manufacturers have warned their clients
Alvarez said the shortages are leading to a spike in prices
This installation jumped by about a third year over year, he said
It’s not just supply. Companies must identify new hardware, valves, and other equipment, plus training to accommodate the change.
Another company, Daikin Comfort Technologies, warned its sales and distribution reps about a potential shortage of cylinders that transport the refrigerant, calling it a ‘major issue’ and warning ominously, ‘It’s going to be a nasty summer.’
It’s not only individual homeowners who are getting hit.
A spokesman for Rep. Neal Dunn (R-Fla.), who has introduced legislation to try to undo the rule under a process to overturn administration regulations, said the nation’s grocers are feeling the pinch.
‘They’re the ones who have these massive refrigeration units,’ said spokesman Matt Maley. He said small business including restaurants and grocers potentially having to lay out thousands of dollars to replace their systems.
Dunn’s legislation calls the EPA regulation an ‘undue burden’ and the National Grocers Association claimed it could lead to ‘higher grocery prices for consumers and, in extreme cases, force community grocers to shut their doors.’
The Biden administration pushed through the rule after inking a global climate agreement.
It came amid the global rise in the use of air conditioning and studies on the damages posed by Hydroflorocarbons (HFCs) – a greenhouse gas termed a ‘super-pollutant.’
The agreement was seeking a 40 percent reduction of HFCs beginning in 2024 with a push for an 85 percent reduction by 2036.
It was just one element of a climate agenda that the Trump administration is trying to dismantle through executive orders and legislation.
