R-22 Phase Out – What it Means for Businesses

In 2013, the Environmental Protection Agency (EPA) began phasing out R-22 (Freon) due to its harmful effects to the ozone layer. Starting in 2020, the production of new R-22 will be illegal. Today, new R-22 has been reduced by approximately 90%.  This has many businesses wondering what will happen to their R-22 equipment.

The impact of the R-22 phase out will be similar to what the U.S. experienced when switching from leaded to unleaded gasoline. Engines that ran on leaded gasoline cost more to repair and require the use of expensive additives to keep them running. While this extra expense is worth it for many proud car owners, the same probably won’t be true for businesses running R-22 A/C units.

Supply and Demand

R-22 comes in 30lb containers and is sold to consumers by the pound. These 30lb containers have quickly increased in cost, and they are even more expensive in the summertime. When you consider that commercial equipment can require as much as 40-100 or more pounds of refrigerant, the price difference is significant.

In addition to the high price of refrigerant, the cost of repairs will become more expensive as parts for R-22 equipment become less available. This extra expense is simply not feasible for many businesses.

Preparing for the R-22 Phase Out

It’s important to begin preparing for the R-22 phase out as soon as possible. Waiting will only end up costing you more in the long run. Taking a phased approach is best, as it can save you a considerable amount of time and money. It’s important that you do not wait until equipment breaks or you are forced to replace it.

Repairing an R-22 A/C unit that is leaking can cost well over $5000. The same repair on a newer system costs around $1000. It’s a much smarter idea to invest your money in a more efficient system over repairs to an older A/C unit.

Compu Dynamics can help your company plan for the replacement of older R-22 equipment. Newer equipment is more efficient and more environmentally friendly than older equipment. Replacing R-22 equipment can save you 20% or more on your energy bills. New equipment is also less likely to break, saving you money on costly repairs.

Please contact us for more information.

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