The U.S. Air Conditioning Industry Crisis: A $25 Billion Problem
The following is an opinion column submitted by Jorge Alvarez, co-founder of iGas USA.
The U.S. air conditioning industry is facing an unprecedented crisis, with projected annual costs to consumers of $25 billion. This crisis stems from new regulations imposed by the Environmental Protection Agency (EPA), which require most new comfort cooling equipment to use refrigerants that have a GWP of less than 700, such as R-32 and R-454B. However, the U.S. can only produce a small fraction of the refrigerant needed, forcing the country to rely heavily on imports, primarily from China. These imports have led to a huge price increase for R-454B, in particular, and as a result, Americans are now paying significantly more for refrigerant than just a year ago.
Severe Shortage of R454B Refrigerant
A critical factor in this crisis is the severe shortage of R454B refrigerant. Industry professionals are struggling to find even a single 20-pound cylinder, and the cost of refrigerant has surged to $60 per pound, compared to $17 per pound in previous years. Some say the price hike has led manufacturers to ship air conditioning units with insufficient refrigerant [editor’s note: Trane, Carrier, and Rheem recently announced that they would be increasing the factory charge of R-454B in some units], while wholesale distributors report that they cannot supply contractors with the refrigerant needed for service and installation.
The shortage has already driven up the price of air conditioning units. In 2025, the average cost of a system has risen by $3,000 compared to 2024, and by $5,000 compared to 2017. These price hikes have had a disproportionate impact on vulnerable groups, including retired veterans, seniors on fixed incomes, and low-income households. For many, air conditioning is not a luxury, but a necessity—especially during summer heatwaves.
A Looming Crisis for U.S. Consumers
Currently, there is not enough R454B refrigerant available to service or install air conditioning units.
Supply houses are running low, and in many cases, contractors are only allowed to buy one 20-pound cylinder per week, which may not be enough to top off some units after installation. This shortage is set to disrupt air conditioning services nationwide, with significant consequences for hospitals, nursing homes, and the majority of Americans living paycheck to paycheck.
As summer heatwaves approach, the crisis could further endanger vulnerable populations, such as the elderly and those with pre-existing health conditions. The combination of high costs and a refrigerant shortage could exacerbate public health issues and force more families to go without adequate cooling.
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The Path Forward: Legislative Action Needed
To address this crisis, we urgently call on Congress to act and remove the Technology Transitions rule under the AIM Act, specifically subsection (i), which is exacerbating the refrigerant shortage. Without swift legislative intervention, the U.S. air conditioning industry will continue to suffer, and American consumers will bear the brunt of decisions made in haste and without consideration to the logistics of implementation. HJ Res. 38 (Rep. Dunn/FL) and SJ Res. 14 (Sen. Marshall/KS) are two CRA resolutions before Congress that propose solutions – all contractors should please contact their Congressional Representatives, so their voices can be heard.
In conclusion, the current crisis facing the U.S. air conditioning industry is both an economic and a public health issue.
Price hikes, refrigerant shortages, and job losses are hurting American families. If action is not taken soon, the situation will worsen. It’s time for Congress to step in and prevent further harm to U.S. consumers and workers.
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