New U.S. Efficiency Standards Result in Savings to Canadian HVAC Dealers
HVAC efficiency standards for residential and commercial equipment have changed in the U.S., creating an opportunity for Canadians dealers.
Effective January 1, 2015 new regional energy conservation standards took effect for split-system and single package central air conditioners sold and installed throughout the U.S. Three regions of the country — North, Southeast, and Southwest — have unique minimum SEER and EER performance requirements.
The northern region will maintain the current 13 SEER standard for air conditioners while the regions in the southeast and southwest will move to 14 SEER standards. The 18-month grace period for dealers to sell through products manufactured before 2015 finishes June 30, 2016. And therein, lies the opportunity.
Surplus savings
Distributors such as Lazco Corporation can help Canadian dealers purchase surplus inventories at substantial savings. "Lazco is looking to work with distributors in Canada and to save them money on the brands that they carry by offering to sell them 13 SEER equipment at very good savings," says Steven Lazar, company president.
Lazar has been in the HVAC over 30 years, getting his start in his father’s company, and created Lazco in 2007 when he noticed market changes created surplus inventories. He quickly saw the opportunity for national redistribution. We're like a “an inventory-balancing agency for the heating and air conditioning industry,” he says.
Today Lazco Corp. buys and sells HVACR equipment that is new, surplus or used in all the top brand names from major manufacturers such as Carrier, Goodman, Lennox, Nortek Global HVAC, Rheem, Trane, and York.
In addition, the company buys and sells surplus chillers, cooling towers, roof tops, boilers, and generators. "We will quote any commercial, industrial or residential project worldwide," Lazar says.
Canadian regulatory changes
While the U.S. Department of Energy (DOE) announced changes for HVAC efficiency standards in April 2014, Natural Resources Canada announced in April 2016 that it intends to propose amendments as well.
Changes to the Energy Efficiency Regulations include a series of amendments between 2016 to 2018. The first amendment, Amendment 13, will look to updating existing energy efficiency standards for 20 residential and commercial product categories, 19 of which will align with the U.S. requirements.
Natural Resources Canada spokesperson, Angela Kokkinos, says while Canada has a policy objective of aligning with U.S. energy efficiency standards, changes will be made "where it makes sense to do so" that is, where it's appropriate for our climate conditions.
Full details on the proposed standards for air conditioners and heat pumps are expected to be pre-published this spring in the Canada Gazette.
In the meantime, Canadian dealers can take advantage of the regulatory changes in the States. Distributors and manufacturers in the Southeast, and Southwest regions of the U.S. need to sell through 13 SEER inventory by July 2016. Lazar has been helping companies convert older inventories into working capital that can then be reinvested in current selling inventory. With extensive relationships in the HVAC, Lazar can help Canadian dealers source the equipment at significant savings.
Interested in saving money on 13 SEER equipment? Send Steven Lazar an email at [email protected] and ask him for a surplus list in equipment you're currently selling. Visit lazcocorp.com for more information.
Natalie Cajic is a freelance writer based in Toronto, Canada