Energy savings for an A/C system.

I'm purchasing a replacement for my failed A/C system. The contractor has guaranteed in writing that I will realize a 30% savings in my electric bill. The amount being saved will be calculated at the end of the year by comparing the energy used during the last year for the old system and the energy used during the first year with the new system. If the 30% savings is not realized, the installer will give me a check to pay for twice the difference between what I paid for energy and would have paid if the 30% savings had been realized. Also, they will make whatever changes are necessary to ensure that the 30% savings is achieved at no cost to me.
I would appreciate any comments/advice/warnings about this guarantee.
Thanks in advance for your help, Bill
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bill.
I hope the weather holds up for the installer. I'd hate to see a year with record high temperatures and that kind of gurantee out on the books.
- Robert
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Bill & Debbie wrote:

bill.
How long has he been in business? Will he be around later? Keep in mind that while it is not a bad feature, it is only worth two years after that you are on your own. If it is a poor install, that little payment will not make you happy with the results.
--
Joseph E. Meehan

26 + 6 = 1 It's Irish Math
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bill.
Have you checked with other installers, price wise? Sounds to me like a deliberate over charge to you. He keeps the money for a year, gains the interest and disappears just before he is supposed to give you a check.
I would have him post a bond or a cd with your name as copay before signing on the bottom line. 30 % is a bunch or not depending on where you live. Your utility surely has old data on your usage. The savings figure should be an easy calculation to figure out. If it sounds to good it usually is.
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Did the installer tie in the savings with the degree day factor? In other words, if we have a colder winter/hotter summer than before, he's gonna be paying you the money.
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Something doesnt sound right. What if it is a hot year, what if with with the new system you run it longer and cooler to get the utilities way up. How does he know you wont open your windows to get your rebate and upgrade.
He should be checked out with allot of refrences and Court records to see if anyone has brought suit. How long has he been in business, under Any name.
How old is your unit, what seer, did it cool good, to much or to little. Did a load calculation get done.
What is your new unit and seer.
You could easily crank the unit and open windows to not get an 30% savings, How will he know, then what does he do?
If you are getting a very high seer unit and your old unit has a very low seer savings could be 50 - 75 % not 30 %
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I thank everyone that has responded for the great questions and information. The old system was installed when I had the house built 7 years ago. It was a contractor's Carrier "lemon" as far as I am concerned and had a SEER rating of 10 and an Air Handler brand with which no one is familiar. I plan to have a Goodman installed that has a SEER rating of 14. The installation company has been in business for 25 years. They fully expect the system to easily exceed the 30% that they guarantee.
Thanks again to everyone for your help, Bill

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7 years is not old, 10 seer vs 14 is apx 37% more efficient. There are units of 18 - 19 - and 20 seer plus. Depending on your climate you should run the numbers for payback. There are air handlers with VS DC motors that save 50 % of your electrical costs in winter, raise seer by 1 and can dehumidify twice as much. You have more options then you know .
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I purchased a new window air conditioner and the savings in electricity was amazing! It is worth it in the long run to get new appliances like refrigerator, A/C, Washer, etc. as they can be so much more efficient than the older models. (Pay for themselves...)
"Bill & Debbie" wrote in message

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Bill & Debbie wrote:

That is the dumbest thing I have ever heard! Consider all the energy usage variables from one year's temperature and humidity averages. Both units, the old and the new, would have to have been on individual meters, which still tells you nothing due to the climatic differences from year to year, plus room temp TH settings, etc., etc. (Total heat load includes the humidity - latent heat load to transfer outside!)
(That is the craziest thing a contractor could do!)
<A HREF="http://www.udarrell.com/my_pages2.htm#MY_AIR_CONDITIONING_PAGES "> Darrell udarrell
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Sounds fine, from your point of view.
Nick
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The electric utility in Tucson AZ has a similar program for new homes. They look at the plans and will quote a "Guaranteed rate" for annual heating and cooling if electricity is used (VS gas furnace). They guaranteed me less than $ 1.58/day for a 2740 sf house...that ran ~ $ 660.00 on an annual basis. It was guaranteed for 5 years also. Sure enough, it never went over what they'd said. (If it had, they'd pay the diference) In fact, of the hundreds of homes in the plan, none ever went "over" (they had a sufficient "fudge factor" built in to the program). It helped that for the 5 years, their rates were frozen and just being on that plan got an automatic 20% discount on the reg rates. We had 2 -12.5 SEER Carrier A/C units in that place. We've just had a new place built and this is a single14 SEER unit but not in AZ. Electric bill here for the last 3 months was only $ 70.00 but use gas now for the H/W.
R
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