Commercial HVAC Energy Regulations: What Atlanta Businesses Need to Know
In 2018, the Department of Energy (DOE) introduced updated energy efficiency regulations for commercial HVAC equipment. These changes directly affect businesses across the Atlanta area—especially those planning to replace or upgrade rooftop heating and cooling systems.
Understanding what the new regulations require, and how they impact your facility, can help you stay compliant while making smarter long-term investments. Estes Commercial works with Atlanta businesses to navigate these updates and implement solutions that meet current codes.
New Commercial HVAC Energy Regulations Explained
The updated regulations apply to commercial rooftop heating and cooling equipment, including new installations and system replacements. Any new commercial HVAC system must meet minimum efficiency standards set by the DOE.
These updates are part of a multi-year rollout designed to gradually increase energy efficiency requirements. The first phase took effect on January 1, 2018, followed by additional requirements beginning January 1, 2023.
As part of the 2018 update, the DOE adopted efficiency standards developed by the American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE)—specifically the 90.1-2013 Integrated Energy Efficiency Ratio (IEER) standard.
What Is IEER and Why It Matters
Integrated Energy Efficiency Ratio (IEER) measures how efficiently commercial air conditioning and heat pump systems operate at partial load, which reflects real-world usage more accurately than older metrics.
IEER replaced the former IPLV measurement and evaluates system performance across multiple operating conditions instead of only peak output.
Because commercial HVAC systems rarely run at full capacity all day, IEER provides a more realistic picture of:
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Actual energy consumption
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Day-to-day system efficiency
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Long-term operating costs
Current DOE IEER Requirements by System Size
As of the 2018 regulations, minimum IEER requirements are based on system capacity:
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6-10 ton systems: minimum 12.9 IEER
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11-20 ton systems: minimum 12.4 IEER
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21-63 ton systems: minimum 11.6 IEER
Specific efficiency requirements vary by equipment type and application. The most up-to-date standards can be found on the DOE website.
How Manufacturers Meet the New Standards
To comply with updated energy regulations, manufacturers have incorporated advanced technology into modern commercial HVAC systems, including:
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Multi-speed blower fans
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Multi-speed condenser fans
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Larger, more efficient heat exchangers
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Improved compression technology
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Advanced system controls
These improvements allow systems to operate more efficiently, reduce energy waste, and maintain consistent comfort throughout a commercial facility.
What These Regulations Mean for Atlanta Business Owners
The goal of the new HVAC energy regulations is to significantly increase energy efficiency nationwide—reducing heating and cooling energy use by an estimated 1.7 trillion kWh over the next 30 years.
According to DOE estimates, these changes can save the average business owner between $4,200 and $10,000 over the lifespan of a single rooftop HVAC unit.
While higher-efficiency systems may involve a higher upfront cost, they typically deliver:
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Lower monthly utility bills
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Reduced operating expenses
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Faster payback periods
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Greater savings over the system's life
Additionally, new tax code provisions may offer depreciation or incentive advantages for qualifying commercial HVAC upgrades, helping offset initial investment costs.
Installation and Structural Considerations
Some high-efficiency systems require larger heat exchanger surfaces to meet performance standards. For rooftop installations, this may mean:
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Additional structural load requirements
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More rooftop space for equipment placement
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Advance planning for installation logistics
A professional evaluation ensures your building can safely support the upgraded system and meet all compliance requirements.
Let Estes Commercial Guide Your HVAC Upgrade
Estes Commercial partners with Atlanta-area businesses to ensure compliance with current HVAC energy regulations while delivering systems that support operational efficiency and long-term cost control.
When proposing a new commercial HVAC system, our team carefully evaluates efficiency standards, building requirements, and performance goals. We also offer consultations, second opinions, and estimates to help businesses make informed decisions.
We serve businesses throughout Metro Atlanta, including Kennesaw, Atlanta, Buckhead, Druid Hills, Decatur, Roswell, Peachtree City, Sandy Springs, Virginia Highland, Marietta, Dunwoody, Johns Creek, Midtown, and Fayetteville.
Frequently Asked Questions About Commercial HVAC Energy Efficiency
Why is IEER more important than older efficiency ratings?
IEER measures how systems perform during typical operation, not just at peak output. This makes it a more accurate indicator of real energy use and long-term operating costs.
Do DOE efficiency standards apply to replacement equipment?
Yes. Any newly installed or replacement commercial HVAC system must meet current DOE IEER requirements. Non-compliant equipment cannot be legally installed.
Are existing HVAC systems required to be upgraded?
No. Existing systems do not need to be replaced immediately. However, future replacements must comply with current standards.
Will higher-efficiency systems cost more upfront?
Often, yes. However, these systems usually result in lower energy use, fewer operational issues, and long-term savings that outweigh the initial cost.
How do IEER standards help reduce utility bills?
Higher IEER-rated systems consume less energy during everyday operation, leading to lower monthly utility expenses.
Are tax incentives available for commercial HVAC upgrades?
Federal, state, or local incentives may apply to qualifying energy-efficient upgrades. Businesses should consult HVAC professionals and tax advisors for guidance.
When should a business start planning an HVAC upgrade?
Planning should begin before a system fails. Evaluating system age, performance, and energy use allows businesses to upgrade strategically and avoid emergency replacements.
