As the industry shifts to cooling equipment that’s compatible with lower-GWP refrigerants, there is still demand for products that use refrigerants that are being phased out — and these distributors want to meet it.
- EPA Regulations Impact: The EPA’s 2025 regulations banning R-410A in new HVAC systems have increased demand for R-410A equipment and boosted secondary market sales.
- Price Surge: R-410A prices have risen significantly, reaching $150-$200 per 25-pound cylinder, compared to $30-$50 pre-2020, due to phasedown restrictions.
- Primary Market Rush: Contractors and distributors are stockpiling R-410A units before the January 1, 2025, deadline, leading to shortages and long lead times for new equipment.
- Secondary Market Growth: Used R-410A equipment, especially residential split systems, is in high demand as a cost-effective alternative, with prices for used units (e.g., 3-ton systems) at $1,500-$2,500.
- Installation Deadline: R-410A systems manufactured before 2025 can be installed until December 31, 2025, driving urgency in purchases and installations.
- Transition Challenges: The shift to lower-GWP refrigerants like R-454B and R-32 is complicated by higher costs, limited supply, and safety concerns, slowing adoption.
- Regional Variations: Southern U.S. regions face higher demand for R-410A due to year-round cooling needs, exacerbating supply constraints.
- Economic Factors: Inflation and high interest rates make new, compliant systems less affordable, pushing consumers toward used R-410A equipment.
- Industry Response: Manufacturers are increasing production of R-410A units to meet demand, while distributors report rapid depletion of inventory.
- Long-Term Outlook: Post-2025, R-410A servicing will rely on reclaimed refrigerant, with secondary market sales expected to remain strong until supply diminishes.