In the sweltering Las Vegas valley, air conditioning isn’t just a luxury; it’s a means of survival.
“I can’t imagine living in Vegas and not having air conditioning,” local Kaili Bach shared with 8 News Now.
Don’t miss
- I’m 49 years old and have nothing saved for retirement — what should I do? Don’t panic. Here are 6 of the easiest ways you can catch up (and fast)
- Robert Kiyosaki warns of a ‘Greater Depression’ coming to the US — with millions of Americans going poor. But he says these 2 ‘easy-money’ assets will bring in ‘great wealth’. How to get in now
- Gain potential quarterly income through this $1B private real estate fund — even if you’re not a millionaire. Here’s how to get started with as little as $10
So when AC units go on the fritz, residents are likely sweating the cost of a new unit or potential repairs just as much as they’re sweating the heat. And this summer, staying cool could cost more than ever.
A nationwide refrigerant shortage, sparked by new federal environmental mandates, is reportedly sending shockwaves through the HVAC industry and straight into consumers’ wallets.
‘Prices of units have gone up by 30% to 40%’
The Environmental Protection Agency recently rolled out new standards requiring AC systems to use more eco-friendly refrigerants, and the shift is creating a domino effect of higher prices, compatibility issues and supply snags.
“The mandate is calling for a lower GWP, which is a Global Warming Potential refrigerant. That’s what the 454B is,” James Langley, owner of the HVAC company We Care Air, told 8 News Now. “For us, our install guys have to use different installation tools and adjust our pricing. Prices of units have gone up by 30% to 40%.”
And that’s not all, as it’s not just the refrigerant that’s in short supply — it’s the containers it comes in that are also scarce.
“It seems like they don’t have enough cylinders made to keep up with the demand of refrigerant that’s needed on all the new units,” Langley added.
For homeowners with older AC units, the problem is even worse. The new refrigerant isn’t compatible with many legacy systems, which leaves fewer options for consumers and plenty of opportunity for price gouging.
“People are taking advantage of the situation,” Langley warned. “Let’s say I came to your home and your compressor is out. We can change that compressor, but now there are those who will charge you double because your only alternative is to get a whole new system, which is even more.”
The new refrigerant rules — combined with ongoing trade tensions with China, a big supplier of HVAC inventory — are adding fuel to the fire.
Langley’s advice? If your AC is still going strong, hold off on upgrading your unit, as Langley is more concerned about those who may experience AC issues in the months ahead.
Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it
Beat the heat with these money-saving tips
If your AC unit is working overtime, your wallet might be in for a shock this summer. With AC unit prices surging under the new mandatory refrigerant rules, homeowners may need to get strategic. Here’s how to stay cool and save some money at the same time.
Cash in on federal tax credits
The Inflation Reduction Act is pumping out hefty HVAC tax credits for 2025. Air source heat pumps are quickly becoming the go-to upgrade for savvy homeowners, delivering both heating and cooling in one energy-efficient system. Federal tax credits have been updated with new eligibility rules, making it the perfect time to cash in while cutting your utility bills.
Qualify for rebates
Make sure to check and see if you can get a rebate for replacing an old AC unit or installing new technology. You can either get the money back as a rebate or a tax credit.
Get a second opinion
Don’t let sticker shock force you into an immediate decision. HVAC repairs and replacements can vary, so always get at least a couple of quotes to stay competitive.
Get a home energy assessment
Many utility companies offer free or low-cost home energy assessments that pinpoint where your system (or insulation, windows and potentially more) is underperforming.
Don’t wait until it breaks
Schedule your annual tune-up, which can catch issues early, extend the life of your system and reduce energy waste. Think of it as an oil change for your AC, which is essential and often overlooked.
Install a smart thermostat
A smart thermostat (like a Nest or Ecobee) adjusts to your habits and slashes energy use. Some utility companies even offer rebates just for installing one.
Check for local rebates
Beyond federal tax credits and rebates, some local power companies and municipal utilities offer their own incentives. You might get cash back for installing high-efficiency AC units, insulation or smart controls like the thermostats mentioned above. To find out what may be available in your area, check the Department of Energy’s website.
Do-it-yourself maintenance
Even if you’re not a professional, there are a few easy maintenance tasks you can take on yourself, like checking the owner’s manual, keeping the air filters clean or replacing them regularly, and making sure the area around your AC unit is clear of debris so that air can circulate.
With smart planning and some well-researched upgrades, you can cool your home without scorching your savings. Claim every credit and rebate that you can, and don’t overpay in a panic. Your future self (and your utility bill) will likely thank you.
What to read next
- JPMorgan sees gold soaring to $6,000/ounce — use this 1 simple IRA trick to lock in those potential shiny gains (before it’s too late)
- This is how American car dealers use the ‘4-square method’ to make big profits off you — and how you can ensure you pay a fair price for all your vehicle costs
- Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
- How much cash do you plan to keep on hand after you retire? Here are 3 of the biggest reasons you’ll need a substantial stash of savings in retirement
Like what you read? Join 200,000+ readers and get the best of Moneywise straight to your inbox every week. Subscribe for free.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.