Refrigerant manufacturers recently announced larger than previous increases in the of R-22, by far the most widely used refrigerant in air conditioning. Some sources in the industry are speculating that a 30-pound canister of R-22 that cost around $75 in late April could be near $125 once the increases are eventually passed along to contractors.

According to ACHR News, a number of contractors said they have been anticipating the rising costs of R-22 and have been trying various methods of coping from passing along the entire costs or absorbing a portion. They claim to have been trying to educate customers concerning changes in the industry related to both SEER and refrigerants.

The supply issues relate to the U.S. Environmental Protection Agency’s Clean Air Act which limits the amount of newly produced and imported R-22 available in the United States each year for both OEMs and service work. Using 1998 as a baseline year, production of R-22 was reduced by 35 percent in 2004. In 2015, the cutback will be 90 percent and all production will end in 2020. The demand issue is more complex. For many in the industry, the efforts OEMs put into bringing 13 SEER equipment into the market slowed down the conversion of equipment from R-22 to R-410A. Yet another factor adding to the cost, according to refrigerant manufacturers, is the cost of raw materials (chlorine, fluorspar, natural gas) and increasing costs of packaging and distribution.