I did a video not too long ago on the availability of R22 freon to customers.
Some companies were going around telling unsuspecting folks it wasn’t available anymore.
So, I created a video setting the record straight.
Some of the main points in that blog were: • Telling people it wasn’t available anymore
was wrong because warehouses all around town were full of R22.
• HVAC companies were telling people they could get fined by the EPA if they continued
charging R22 into a person’s system • That they had to buy a new system because
R22 was illegal to use anymore.
• That the truth is that R22 can’t be PRODUCED anymore starting in 2020.
So any R22 we get these days is either virgin or it’s reclaimed and recycled.
• By 2030, R22 will likely not be needed anymore.
Today’s systems that use R22 will be cycled out of operation likely due to repair vs.
replacement that customers face every day with appliances, cars, and other repairs.
• As R22 becomes more scarce, the price will skyrocket.
As you know, 2020 and the initial year of COVID-19 set up a major hit in inflation.
When 2021 arrived, companies everywhere were having a hard time finding reliable help.
Manufacturers had a hard time building their equipment because of the lack of microchips,
sheet metal, plastic, and other building materials.
By land or sea, Shipping carriers were having backups at loading docks for one reason or
another.
In the HVAC industry, it resulted in a 25% increase in the cost of equipment and repair
parts.
We saw the cost of R22 refrigerant go up 400% in one year!
Big-time sticker shock.
This has translated to customers paying up to $300 and more for one pound of refrigerant.
I usually keep a couple dozen tanks of R22 freon in my shop for the guys to keep in their
trucks for service.
Until now, I had just assumed I would continue buying it and offering it as an option for
our customers.
This past winter of 2021, I started contemplating whether we should continue buying it or just
sell what we have left and move on like so many other companies who just don’t sell
it.
They sell alternative refrigerants only, like R-407, Bluon, Nu22, and others, which is fine!
Each contractor has their way of doing things, and I have no opinion about that as long as
they’re or their employees are not lying to customers.
The reason why is because refrigerant is made of a precise blend of chemicals and oils.
Once you top off a system with something like Nu22, Bluon R458a, or R407c, you’ve now
created a whole new refrigerant with a different composition.
And that WILL affect how your system runs in the future.
So, when a shady contractor tops your system off with that stuff, they will be long gone
with your money, and you’ll be stuck with a system that won’t cool anymore because
of damage to the compressor due to oil circulation issues, sludge that can develop inside the
system, and damage to the metering device.
It’s not like the EPA will come knocking your door down, but I just wanted to be transparent
about topping off refrigerant in case someone tells you it’s okay.
I Asked My Team For Their Opinion Anyways, this inflation kinda’ threw a wrench
in my thinking, so I asked my senior techs what we should do.
What kind of pushback were they getting in 2021 from customers needing R22?
They said folks who only needed a couple of pounds had not given them any grief about
the cost of it, even though we bumped it up to from $125 to $200 a pound last year.
They also said those who had catastrophic leaks on systems felt differently.
Knowing they would need a repair to the copper lines and several pounds of refrigerant, facing
a couple of thousand dollars to stay calm, either switched to alternative refrigerant
like R407c or just buying a new system altogether.
I asked them if they thought we should go another year offering R22 even though we would
have to raise the price another 50%.
The three of them said we should.
They also recommended keeping the price of R407c or Bluon R458 at a reasonable level
so that at some amount of repair, say 20% to 25% or more, it would make sense just to
go ahead and recover the remaining refrigerant and retrofit over to the alternative refrigerant.
Well, that’s what we’re going to do.
I just wanted to update everyone on how we are handling the cost of everything going
up so much in 2021.
Of course, as we experience price increases, we have to pass them on to the customer, but
I promise to keep it realistic.
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