The Air Conditioning Crisis: A Perfect Storm of Shortages and Price Hikes
Imagine this: It’s 100 degrees outside. But you’re not worried. You just spent $12,000 on a brand-new air conditioning system that uses the latest government-mandated coolant designed to combat climate change.
There’s just one problem: There’s a severe shortage of that very coolant.
You can’t beat summer heat in Texas. Making it worse is a new government-mandated coolant in short supply. The new coolant doesn’t work with older AC units, so if your current unit becomes unrepairable, you probably will need to pay for a new AC.
Your AC technician can’t find any. The system you invested in runs at less than full capacity, and your house feels like an oven. All that money spent, and you’re still sweating it out.
The U.S. air conditioning industry is facing one of the biggest crises in its history.
Watchdog Alert
The New Coolant: A Well-Intentioned But Flawed Solution
As of January 1, the federal government mandated a switch to a new refrigerant, R-454B, which is touted as more environmentally friendly. But the transition has not gone smoothly.
The problem is a severe shortage of coolant that has forced skyrocketing prices. Experts say there are several reasons for the shortage: high demand, supply chain problems, limited number of manufacturers and confusion about the sudden transition.
The situation is not helped by tariffs either. All this has caused much of the AC industry to remain frozen in place.
Stockpiling: A Strategy for the Prepared
Roland Arrisola, past president of the Texas Air Conditioning Contractors Association, told me his strategy was to stockpile the old coolant.
“I bought a little over $2 million worth,” he tells The Watchdog.
Most small companies don’t have $2 million laying around.
None for Sale: The Frustrating Reality
On the day I interviewed Michael Mushegan, president of Gorman Mechanical of Azle, he reported that on this day his employees called 38 suppliers, but only two had R-454B.
“And those two would only sell a bottle of R-454B refrigerant if you bought a full system,” he said.
Professionals are anticipating a 16-week wait to get the new coolant.
How This Affects You: The Harsh Reality
If your AC system is working fine, no need to worry.
But if a major part like a compressor breaks, you might need to replace your entire AC unit (typical price around $10,000 to $12,000).
When old coolant was low, you could top it off. That won’t work here. The new coolant doesn’t work with older units.
When someone is forced to convert their system because it’s unrepairable, it requires a complete replacement. You can’t drop in the new coolant into an old system.
Delay Won’t Help: The Crisis Deepens
The U.S. Environmental Protection Agency announced in March that it is considering a delay for the conversion. But that wouldn’t solve the problem because the few companies that make the new coolant have already converted their plants and no longer make the old coolant.
One of those companies is Honeywell, which recently announced it is adding a 42% tariff on the new coolant. That adds to everyone’s frustration.
Some parts may be made overseas, such as cylinders and connecting valves. There’s a shortage of them. That’s one reason they are subject to the tariffs.
As I first reported a year ago, “Don’t worry. The government is not going to knock on your door to check your coolant. You’ll have to deal with this when your current system fails and can no longer be repaired. That could be years from now. Or it could be next year. Roll the dice on this one.”
The Frustration Grows: Industry Professionals Speak Out
“It’s amazing to me,” Mushegan says. “The whole idea is to save the atmosphere and lower the carbon footprint, right? It’s turned into such a catastrophe.”
And the hot weather is not even here yet.
By Dave Lieber – The Watchdog
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