Is 20 seer worth the money?

Is 20 SEER worth the money depends on your climate, electricity rates, and how long you plan to stay in home. SEER stands for Seasonal Energy Efficiency Ratio, and 20 SEER is high efficiency, compared to minimum 14 SEER required by DOE and standard 16 SEER mid-efficiency. A 20 SEER unit like Trane XV20i variable speed or Lennox XC20 uses about 35 percent less electricity than 14 SEER and about 20 percent less than 16 SEER to produce same cooling. In hot climates like Texas, Florida, Arizona where AC runs 8 to 10 months per year and electricity costs 15 to 20 cents per kWh, 20 SEER can save 300 to 600 dollars per year on electricity, paying back extra upfront cost of 2,500 to 4,000 dollars over 16 SEER in 5 to 8 years, so worth it if you stay 10+ years. In mild climates like Seattle or Northeast where AC runs 2 to 3 months, savings are only 100 to 200 dollars per year, payback takes 12 to 15 years, not worth it unless you value comfort. Additional benefits of 20 SEER variable speed units are much quieter operation at 55 decibels versus 70 decibels for single stage, better humidity removal that makes home feel cooler at higher thermostat, and more even temperatures. For most homeowners in hot climate with high electric rates, 20 SEER is worth money for comfort and savings if staying long term.