SUMMER 2016 UPDATE: R-22 Prices spike like never before, creating the perfect time to sell.
In late 2012 and early 2013 the price of R22 climbed enormously but fell like a stack of cards over night when The EPA released it's above expected allocation quota's for 2013/14. The price has gradually increased again thoughout the last three years and recently overtaken the 2013 high. If you took advantage of investment opportunities in 2012 and before this could be the ideal time to reap the rewards.
E.P.A. Allowance and Allocation
The United States Environmental Protection Agency has issued its final HCFC Allowance and Allocation ruling, which limits production and/or importation of R-22. Following the EPA ruling, prices of refrigerant R-22 began to climb. The supply of R-22 in the U.S. is strictly controlled. The demand for R-22 in the U.S. is increasing as result of the implemented 13 SEER energy requirement on air conditioning equipment. Raw materials, manufacturing and energy costs are also rising and these too contribute to the increased prices.
E.P.A. HCFC Phaseout Schedule
Phase 1 2004 35% Overall Consumption Reduction* from prior year
Phase 2 Stage 1 2010 75% Overall Consumption Reduction* from prior year
Phase 2 Stage 2 2011 An additional 10% Consumption Reduction* from prior year Phase 2 Stage 3 2012 An additional 10% Consumption Reduction* from prior year Phase 2 Stage 4 2013 An additional 10% Consumption Reduction* from prior year Phase 2 Stage 5 2014 An additional 10% Consumption Reduction* from prior year Phase 3 2015 90% Overall Consumption Reduction* from prior year Phase 4 2020 STOP R-22 PRODUCTION
*Consumption is calculated by the following formula: consumption = production plus imports minus exports.