2023 Commercial Standards

On January 1, 2023, the U.S. Department of Energy’s new minimum efficiency standards will go into effect. The changes include:

  • New minimum cooling efficiencies for newly manufactured residential and commercial HVAC equipment
  • Natural gas heating efficiency (> 225,000 btu/h) increases from 80% to 81% steady state efficiency

These changes may present new complexities, but the Larson Company is committed to working with our suppliers who are leading our industry in compliance and energy intensity reduction and is prepared to support our partners every step of the way. Throughout 2022, suppliers will be updating some of their products to meet the new 2023 requirements.

Questions? Contact your Commercial Specialist who will guide you through this transition.


Why the Change?

Every six years, the Department of Energy reviews energy use of certain home appliances and mechanical systems in an ongoing effort to reduce overall energy consumption in the United States. If it is determined that an increase in energy efficiency requirements is justified, higher requirements are put into effect.

The changes are expected to save a significant amount of energy and yield environmental benefits. The DOE estimates the new standards will result in a cumulative reduction in CO2 emissions through 2030 amounting to 77 million metric tons (Mt), which is equivalent to the emissions resulting from the annual electricity use of more than 10.6 million homes.*

IIER Ratings

In 2018, the DOE changed its performance metric for commercial air-conditioning and heat pump equipment from EER to IEER (Integrated Energy Efficiency Ratio). IEER is a cooling part load efficiency measurement that takes into account different operating conditions and is the best representation of how a unit will perform over a cooling season.

New Commercial Minimum Efficiency Standards

The new 2023 system cooling efficiency minimums are increasing on commercial units above 65K BTU by approximately 15%. The charts below outline standards for commercial packaged and split systems (air conditioners and heat pumps) and commercial gas furnaces. All products manufactured prior to January 1, 2023, may be installed on or after January 1, 2023.


(Air Cooled) – ≥ 65,000 Btu/h and < 135,000 Btu/h Cooling Capacity 

(Air Cooled) – ≥ 135,000 Btu/h and < 240,000 Btu/ Cooling Capacity 

(Air Cooled) –≥ 240,000 Btu/h and < 760,000 Btu/h Cooling Capacity  Very Large Commercial Packaged

(Air Cooled) –≥240,000 Btu/h and < 760,000 Btu/h Cooling Capacity