Realities of the R22 Phase-out

May 16, 2018
3 min read

The phase-out of the ozone-depleting refrigerant gas R-22, also called HCFC-22, is nearing the end. As a result, there are several things that contractors need to be aware of.

Here are 3 realities of the R22 Phase-out:

1.  Time is running out. In less than 2 years, the R22 refrigerant phase out will be completed.

The R22 phase out is a part of the EPA’s HCFC phase out schedule, which the United States agreed to as part of the Montreal Protocol. In order to complete the phase-out, there is a cap put in place on production and import of R22. This year, 9 million pounds of R22 will be allowed. That drops to 4 million in 2019.That’s not a lot, which signals an impending R22 shortage, especially if recycle and reclaim rates of this material are down.

2.     On January 1, 2020, the R22 phase-out will be complete. The material that’s available thereafter will only be from recycle and reuse.

When Jan. 1, 2020, comes around, R22 will be incredibly scarce. Contractors are already feeling the pinch now with rapidly declining R22 supplies and the cost of R22 skyrocketing. It’s basic supply and demand and making a repair to a unit that requires R22 will get increasingly expensive. As per the US Environmental Protection Agency, R22 will become illegal in the United States on January 1, 2020. After that R22 refrigerant phase out date, it will not be manufactured or imported into the US.

3.     Owners of Commercial HVAC systems get a big tax break if they replace an R22 system in 2018

Now is a great time for your customers to replace an unreliable, older system using outdated Freon R-22. After January 2020, old R22 air conditioners can no longer be repaired. Eventually, you’ll be forced to replace all R22 air conditioners. Think about that for a minute. Suddenly everybody with an old air conditioner that breaks will have to replace his or her R22 air conditioner. Consider what the demand for installing new air conditioners will be like in 2020. Even now, the process for buying and installing a new AC unit can take weeks. Imagine how long it will take in 2020 when everybody is required to replace an R22 air conditioner. Thanks to the new tax laws, you can let your customers know that they can receive a large tax break when they install a new HVAC system. Typical savings can be at least $5000! Those savings will really help offset the cost to replace an R22 air conditioner.

FIELDBOSS Contractor Management software can help you easily create a marketing list of all your customers who have an R22 HVAC system. With a click of a button, you can email the list and advertise the phase-out of R22 and the opportunity for a big tax break. Be sure to express that there has never been a better time to replace their old air conditioner.

Contact FIELDBOSS and learn more about all the unique HVAC specific functionalities to help you overcome industry challenges.

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