FTC FACTS for Consumers

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Heating and Cooling Your Home 

H eating and cooling systems are some of the most important investments you’ll ever make in your home. Whether you’re buying a new house, renovating an old one, or 

making an emergency purchase because “old faithful” finally conked out, a lot is riding on the 

choices you make: Your comfort and safety are at stake, and so is your money. 

According to the Department of Energy (DOE), about 45 percent of your utility bill typically goes 

toward “space conditioning,” or heating and cooling your home. While the purchase price of the 

equipment and cost of repairs and maintenance are important to consider, so is the operating cost 

of the system. By choosing the most energy-efficient equipment that meets your needs and fits 

your budget, you may be able to lower those hefty space conditioning costs. 

The Federal Trade Commission, the nation’s consumer protection agency, wants you to know that 

it enforces the Appliance Labeling Rule, which requires EnergyGuide labels on certain appliances, 

including room and central air conditioners, furnaces, boilers and heat pumps. The labels let you 

know how energy efficient a model is compared to others like it.
Facts for Consumers 

label for each product. If you can’t see the 

EnergyGuide label when you’re making your 

decision, a seller should have the information in a 

fact sheet, brochure or directory.

How Do You Say “Efficiency”?

When it comes to talking about energy 

efficiency, heating and air conditioning 

systems have a language all their own... 

 If you’re referring to furnaces and 

boilers, it’s “annual fuel utilization 

efficiency,” or AFUE. 

 For room air conditioners, it’s “energy 

efficiency ratio,” or EER. 

 For central air conditioners and heat 

pump cooling, it’s “seasonal energy 

efficiency ratio,” or SEER. 

 For heat pump heating, it’s “heating 

seasonal performance factor,” or 

HSPF. 

Regardless of the acronym, a higher 

number means a more efficient system.

Before You Buy a New Heating or 

Cooling System... 

Do a home energy audit. An energy audit is a 

careful look at your home to see how efficient 

your heating and cooling systems are and where 

your home is wasting energy — say, through 

air leaks or under-insulated attics and ducts. 

Your utility company may offer free or low-cost 

energy audits, or it may be able to recommend a 

local company or organization to do it. You also 

can check with your state or local government 

energy or weatherization office. A professional 

audit with special equipment like blower doors 

and infrared cameras can cost between $300 and 

$800. Before you hire a company to do your 

audit, get several references to contact, check out 

the company with the Better Business Bureau to 

see if there’s a history of complaints, and make 

sure the auditor uses a calibrated blower door and 

does thermographic inspections or else contracts 

Why should you care about energy 

efficiency? 

The more energy efficient a system is, the less it 

costs to run and the lower your utility bills. Using 

less energy is good for the environment, too; it 

can reduce air pollution and help conserve natural 

resources. 

Is there much of a difference among 

the various models on the market? 

All products have to meet minimum energy 

efficiency standards set by the federal 

government. But many products beat those 

standards, use even less energy and cost less to 

run.

How can you tell how efficient a 

system is?

Retailers and contractors that sell heating 

and cooling systems (central air conditioners, 

furnaces, boilers and heat pumps) are required to 

let you know about a product’s energy use and 

energy efficiency before you buy it. They can use 

a website, fact sheet, brochure or directory. If a 

seller hasn’t pointed out this information, be sure 

to ask about it. Manufacturers have to provide it 

on EnergyGuide labels on their products. 

The Energy Star logo is a key indicator of 

efficiency, too. When you see it, it means the 

product meets strict energy efficiency criteria 

set by the Environmental Protection Agency and 

DOE. Learn more at energystar.gov. 

What makes one system more 

efficient than another? 

Most of the differences are on the inside — in the 

motors, compressors, pumps and valves. So even 

if two models look alike from the outside, these 

internal features can mean a big difference in your 

monthly utility bills. 

How can you be sure claims about 

energy efficiency aren’t just sales 

hype? 

Manufacturers use standard tests developed by 

DOE to measure the efficiency of their products. 

The test results are reported on the EnergyGuide 
Facts for Consumers

another company to do them. Expect to come 

away with recommendations for specific fixes and 

improvements you can make to save energy. 

If your budget doesn’t allow for a professional 

audit, you can do a basic energy audit yourself. 

For more on what to look for, visit DOE’s Office 

of Energy Efficiency and Renewable Energy 

(EERE) at energysavers.gov, or use the online 

audit tool at hes.lbl.gov. 

Weatherize your home. Caulk, seal and weatherstrip air leaks around windows, doors and cutthroughs for plumbing, ducting or electrical 

wiring. Check existing seals for gaps or cracks, 

and repair leaky ducts. While you may try doing 

some minor repairs yourself, consider hiring a 

professional to do more extensive repair work. 

If your energy audit reveals inadequate insulation 

levels in your home, you can bring them up to 

DOE-recommended levels. These fixes may allow 

you to install a smaller, less expensive heating or 

cooling system to get the same results.

Compare the performance and operating cost 

of different brands and models. Study the 

product literature, and do some research. Will the 

product do the job? What’s its repair history? Will 

it handle your needs today? Ten years from now? 

Does it fit your budget?

Look at each product’s energy use, as well. The 

more energy an appliance uses, the more it costs 

to run. Ask to see the fact sheets, brochures or 

product directories that tell you about a product’s 

energy use and energy efficiency so you can 

compare among models. Retailers and contractors 

selling these systems are required to have this 

information. The difference on your monthly 

utility bill can be significant, especially over the 

lifetime of the product. Choosing a more energy 

efficient model, even if it costs more at first, 

saves you money over time.

Ask about special energy efficiency offers. Ask 

your local utility or system salesperson about cash 

rebates, low-interest loans, tax breaks or other 

incentives in your area for buying energy-efficient 

products — and how you can qualify. 

Tips for Lowering Your Monthly 

Energy Bill 

Being an energy-smart consumer means getting 

the most from the energy you use:

•	 Lower your thermostat in winter and bump

it up in summer before you go to sleep and 

before you head out for the day. Even easier, 

install a programmable thermostat that does 

it automatically. 

•	 Clean or replace filters for forced-air

furnaces, heat pumps or air conditioners.

•	 Vacuum air vents, baseboard heaters and

radiators regularly — dust reduces heating 

efficiency — and move furniture, carpet and 

curtains that restrict their operation. 

•	 Use drapes and shades to help prevent heat

gain on sunny summer days and heat loss 

on chilly winter nights. Shade room air 

conditioners to save them unnecessary extra 

work. 

•	 Seal air leaks around windows, doors

and places where pipes and wiring come 

through walls. Check existing caulking and 

weatherstripping for gaps or cracks. 

•	 Schedule an annual tune-up for heat pumps,

furnaces, boilers and central air conditioners. 

Expect to pay between $50 and $200. Your 

utility company may offer these tune-ups. 

•	 Check ducts for holes and gaps where

sections have separated and air may be 

leaking out. Some leaks you can seal yourself 

with mastic sealant or metal tape (don’t use 

duct tape). Hiring a professional to repair 

leaky ducts can be a good investment. 

•	 Close fireplace dampers when you don’t have

a fire going, and seal flues in fireplaces you 

don’t use.

•	 If your home has a crawl space under it,

open your foundation vents in spring and 

close them in winter. 

•	 Prune shrubs that may block airflow to your

air conditioner or heat pump. 
Facts for Consumers

•	 Make sure your home is insulated to DOErecommended levels, which you can find at 

energysavers.gov.

•	 Use ceiling fans to cool in summer and

circulate heat in winter. 

•	 Close the doors to rooms you don’t use

regularly.

For More Information

To learn more about saving energy when heating 

and cooling your home, read Weathering the 

High Cost of Heating Your Home and Home 

Insulation Basics: Higher R-Values = Higher 

Insulating Values. The Federal Trade Commission 

offers a wide range of business and consumer 

information online at ftc.gov. This information 

also is available by calling our toll-free helpline 

at 1-877-FTC-HELP (382-4357) (TTY: 

1-866-653-4261). 

The Department of Energy’s Energy Efficiency 

and Renewable Energy Network offers a range of 

energy-efficiency information at energysavers.

gov. This information also is available from a 

toll-free hotline at 1-877-EERE-INF (337-3463); 

TTY: 1-800-273-2957. 

Your state and local energy offices and 

local utility company also may be sources of 

information. 

The FTC works for the consumer to prevent 

fraudulent, deceptive and unfair business practices 

in the marketplace and to provide information 

to help consumers spot, stop and avoid them. 

To file a complaint or to get free information on 

consumer issues, visit ftc.gov or call toll-free, 

1-877-FTC-HELP (1-877-382-4357); TTY: 

1-866-653-4261. The FTC enters consumer 

complaints into the Consumer Sentinel Network, a 

secure online database and investigative tool used 

by hundreds of civil and criminal law enforcement 

agencies in the U.S. and abroad.

S

1-877-FTC-HELP FOR THE CONSUMER

FEDERAL TRADE COMMISSION ftc.gov

September 2009

Federal Trade Commission

Bureau of Consumer Protection

Division of Consumer and Business Education