A/C News

Why is The Price of R-22 Phase-out Plan R-22 Freon/Refrigerant So High?

feat_newsalertAllocation Slashed by 5 Million Pounds in 2017

Since early January 2012 the price of R-22 Freon/Refrigerant which is used in most Air Conditioning systems, has risen over 800% — and we don’t know how high and how fast it will continue to rise. Currently the market price for R-22 Freon is right around $100 per pound. For Example: An Air Conditioner holds approximately (4 Ibs.) of Freon per ton. As an example: a 3 ton Air Conditioner holds approximately 12 lbs. of R-22 Freon or approximately $1,200 in R-22 Freon to fill it up.

Here’s Why
Freon R-22 is harmful to our ozone. The US EPA controls the production and import of R-22 Freon. In 2012 to speed up the Phase-Out of R-22 Freon the EPA set new, lower limits on how much Freon could be produced in the USA. In early 2016 the EPA banned all imports of Freon R-22 into the US. This naturally created a panic in the industry along with shortages that drove the price to over $100 per pound to consumers.

What’s Next in 2017?
In 2016 the manufacturers were given a production quota of 18 million pounds, and we ended up with shortages by years end. However, in 2017 the quota is reduced to only 13 million pounds, which is a drastic reduction of 5 million pounds of R-22 Freon. Major shortages are unavoidable and R-22 Freon will be grossly overpriced and not affordable. We have purchased all the R-22 Freon that was available, however our current inventory will not last more than four months.

R-22 Supplies Very Limited in 2017
Suppliers and Distributors are already prepping for the industries limited Freon R-22 supply. Suppliers will soon limit the amount of Freon that any contractor may purchase thus creating a supply and demand scenario that will fuel major price increases. Prices are sure to skyrocket and consumers will have a hard time paying for a commodity that will easily reach $100 per pound in the coming year. We anticipate that this aggressive reduction ruling by the EPA will result in existing inventory to be drawn down at an accelerated rate as A/C contractors attempt to build their stock and hold on to their inventory in anticipation of limited supplies.

Consumers Must Replace Old R-22 Equipment Soon!
Based on current pricing of Freon R-22 and limited availability consumers have little recourse but to start the process of replacing their old inefficient air conditioners before the Mad Rush Begins! Consumers that choose to wait it out will be paying higher prices and may find themselves on a waiting list for their much needed installation. Time has run out for Freon R-22 and replacing your old Air Conditioner is no longer an option but a simple necessity that you cannot live without!

February 20, 2013 October 20, 2016 editor