Given that you're using your heat pump to both heat and cool, I'd think you would want to buy the most efficient unit you can get. But it all depends on what you're paying for electricity and how much you use your heat pump.
You probably have a pretty good idea how much it costs to operate your current unit. Since you know the SEER of both your current unit and the replacement options, it's straightforward to figure out what you should save.
Let's assume it cost you $1200/year to operate your current unit. SEER is the ratio of energy out to energy in. But just to make things simple, let's use dollars as our units of measure for energy in, rather than kW-hr.
So for your current unit, SEER = 12 = (Eout / Ein) = (Eout / 1200)
Solving for Eout, Eout = 12 x 1200 = 14,400 bogo-units (I just made up the unit of measure called bogo-unit.)
OK, how much will it cost to get the same amount of heating and cooling out of the new units?
For the SEER 14 unit: Ein = (Eout / SEER) = 14,400 / 14 = 1029
So the new unit will cost about 200 dollars less per year to operate. You probably can't justify replacing your old unit on operating cost alone, but if repairs are going to be expensive you may have no choice.
And for the SEER 16 unit: Ein = (Eout / SEER) = 14,400 / 16 = 1029 = 900
So the SEER 16 unit costs about $100 less per year to operate than the SEER 14. So if it costs an extra 400 dollars to go with the SEER 16 unit versus the 14, it will pay for itself in four years.
You can plug in your actual numbers for energy expense and heat pump prices to figure out for yourself whether it makes sense to go with a higher efficiency unit.
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