Heating, Ventilation and Air Conditioning (HVAC)

Looking for ideas on saving energy and lowering your costs on your heating, ventilation and air conditioning (HVAC) system? Did you know that installing an efficient HVAC system can save you up to 35% in energy costs?

Overall HVAC system efficiency is affected by both the efficiency of the equipment itself and the way the equipment interacts with the other components of the HVAC system.

In addition to the variety of energy-efficient HVAC equipment rebates PG&E offers for residential, business and multifamily property customers, there are a number of other opportunities to explore for maintaining your HVAC system to improve operational efficiency and lower costs.

What type of equipment do I have?

There are two types of central air conditioners (A/C) and heat pumps (H/P) typically found in residential homes and small business facilities: split systems and package units. Characteristics of these products are defined as:

  • Split Systems: The condenser and coil are detached in a split system air conditioner. The A/C indoor coil is typically located at the air handler (furnace) and the A/C condenser coil is outside the home.

  • Package Units: The package unit has the furnace, A/C condenser and A/C evaporative coil, and/or H/P elements assembled together in a single piece of equipment.

  • If you have a central natural gas furnace that is 15 years or older, this may be an opportunity to increase the efficiency of your split system air conditioner by replacing your furnace with a new unit having a 90%, 92% or 94% Annual Fuel Utilization Efficiency (AFUE) rating.

Air Conditioner Refrigerant Charge and Airflow System Check

An air conditioner refrigerant charge and airflow system check is a recommended service that should be performed when HVAC equipment is first installed and during annual system check-ups.

A system refrigerant and airflow tune-up is an analysis of your cooling and duct system. A refrigerant tune-up should be conducted by a licensed heating and cooling contractor to determine if your system is performing to manufacturer specifications. Systems that are properly tuned enhance the performance of your cooling system and are more energy efficient to operate. Once the system has been properly charged with refrigerant and has good airflow across the indoor coil, and assuming there is no damage to the duct system, only basic service such as changing filters and cleaning the outdoor unit annually should be needed to maintain the system operation at peak performance levels.

Duct Testing: Why Is It Important

The ducts that are part of central heating and cooling systems offer one of the best opportunities to increase your energy efficiency, increase your comfort, and manage your energy bills. Studies indicate that
10%-30% of the heated or cooled air is lost - along with the money spent to heat or cool that air - through leaky ducts. Energy loss is not the only concern, however. Duct systems can also involve the comfort of your family, employees, tenants, or customers, as well as your indoor air quality. Testing the ducts will locate leaks or damage and focus repair work in the right areas.

A properly operating heating, ventilation, and air conditioning (HVAC) system will help reduce overall energy use - especially during hot summer days when air conditioners are working harder and putting a strain on the electric system. The end result is your system will deliver greater comfort and cleaner air to every room. Properly sized, installed, and sealed ductwork will make your heating and cooling systems significantly more efficient.

For more information, download our brochure titled Why is Duct Testing Important (PDF, 413 KB)?

Buying A New Air Conditioner?

The table below can help you and your contractor to determine which product is best suited for your home or business application:

TierSEEREERRATINGTXV
ENERGY STAR14 Split system11.0 Split systemGoodRequired in California
14 Package system11 Package system
Tier 1 14 Split system12.0 Split systemBetterRequired in California
14 Package system11.0 Package system
Tier 2 15 Split system12.5 Split systemBest


Also qualified for Federal Tax Credit
Required in California
14 Package system12.0 Package system
GeothermalEER- 13.0 COP-4.0 Best Required in California

SEER: Seasonal Energy Efficiency Ratio
EER: Energy Efficiency Ratio
TXV: Thermal Expansion Valve
COP: Coefficient of Performance

For more information, download our fact sheet, Buying an Air Conditioner? Remember the EER (PDF, 538 KB)!

Energy Efficiency Rebates for Homes, Businesses and Multifamily Properties

PG&E offers rebates to eligible customers for installing qualifying energy-efficient items in your home, business, residential apartment building, mobile home park, or condominium complex. In addition to rebates for HVAC equipment including evaporative coolers and natural gas furnaces, customers may also receive rebates for energy-efficient clothes washers, dishwashers and much more.

Energy Efficiency Rebates for Your Business

  • For more information on energy efficiency, call PG&E’s Business Customer Center at (800) 468-4743.

Energy Efficiency Rebates for Your Home

  • For more information on energy efficiency, call PG&E’s Smarter Energy Line at (800) 933-9555.

Energy Efficiency Rebates for Multifamily Properties

  • For more information on energy efficiency, call PG&E’s Smarter Energy Line at (800) 933-9555.

Things to consider when selecting your HVAC Services, Products and Contractor

  • Have you shopped for a licensed contractor who will provide a quality installation that includes duct testing and sealing?
    • Don’t look for the lowest bid – shop for a quality installation.
    • You may wish to contact and consult with more than one contractor to obtain multiple proposals for various energy-efficient models that meet your specific needs.
    • You can contact the Contractors State License Board, CSLB, at (800) 321-CSLB or at www.cslb.ca.gov to confirm your contractor's license status.
  • Is a permit required?
    • If so, make sure you receive a final inspection.
  • Have you talked to your contractor about duct repair, replacement or sealing?
    • Assume nothing. Test ducts as 20% to 30% of heating and cooling cost is lost to leaking duct work.
  • Have you verified, prior to applying, that your equipment and/or the work performed qualify for the rebate?
    • If a Climate Zone restriction applies, have you checked to see that you live in a qualifying Climate Zone?
  • Has the central air conditioning unit or heat pump been checked for proper refrigerant levels?
    • Low refrigerant charge levels can result in poor performance and cause your system to cost more to operate.

Tips for Efficient HVAC Operation and Maintenance

Regular maintenance is needed to keep equipment clean and functioning properly and to avoid wasting energy.

The following items should be part of a maintenance program:

  • Check controls for proper operation.
    • Linkages should operate smoothly throughout their full range.
    • Dampers and valves should provide proper flows.
  • Check time clocks and programmed schedules to see if equipment run-time can be reduced.
  • Clean all heat transfer surfaces (coils, heat exchangers).
  • Use efficient filters. Filters, located at the return air duct or at the furnace, are critical to keeping your heating and cooling equipment running cleanly and efficiently. Clean your filters often and replace them at the manufacturer’s recommended intervals.

Helpful information: