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What Is an Economizer and How Does It Benefit HVAC Systems?

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An economizer is a component of HVAC systems that can significantly reduce energy costs for commercial buildings. By harnessing cool outdoor air, economizers provide an efficient way to cool indoor spaces without relying solely on mechanical cooling. For building owners and managers looking to optimize their HVAC systems, understanding economizers is key to unlocking potential savings and enhancing overall system performance.

How Do Economizers Work?

You typically find economizers in commercial HVAC units. They operate based on outdoor air conditions. These systems use sensors and controls to determine when outside air is cool enough to be used for indoor cooling, bypassing the need for energy-intensive mechanical cooling. This innovative technology not only cuts down on energy consumption but also improves indoor air quality by increasing ventilation.

The Cooling Process

When outdoor temperatures are favorable, the economizer’s controller signals the system to switch off the air conditioning compressor. Instead of relying on refrigeration, the economizer opens dampers to allow cool outdoor air into the building. This fresh air passes through the HVAC unit and circulates throughout the space, maintaining comfortable indoor temperatures without the energy costs associated with traditional cooling methods.

Monitoring and Control

The heart of an economizer system lies in its ability to continuously monitor both indoor and outdoor conditions. Temperature and humidity sensors provide real-time data to the controller, which then modulates damper positions to maintain the desired indoor climate. On mild days, the economizer can handle 100% of the cooling load, while on warmer days, it works in tandem with mechanical cooling to optimize energy efficiency.


What Are the Components of an Economizer?

An economizer system consists of several key parts working together to provide efficient cooling. Understanding these components helps building managers ensure proper maintenance and operation of their HVAC systems.

Motorized dampers are crucial for controlling airflow in an economizer system. These adjustable panels, located in the outside air intake, open and close to regulate the amount of outdoor air entering the building. Actuators are the mechanical devices that control the damper positions, responding to signals from the system controller.

The controller is the brain of the economizer, processing data from various sensors to make decisions about when and how much outdoor air to bring in. Temperature and humidity sensors, both indoors and outdoors, provide the controller with the information needed to optimize cooling efficiency.

To maintain indoor air quality, economizers include filters that clean the incoming outdoor air of particulates. Relief dampers play a vital role in balancing air pressure by exhausting indoor air as fresh outdoor air comes in, preventing over-pressurization of the building.

Intake filters clean the outside air of particulates before circulating it indoors.

Relief dampers exhaust indoor air to balance the influx of outdoor air.

Temperature and humidity sensors track conditions indoors and outdoors. These are different from your thermostat, which sets the desired room temperature.

Proper calibration and maintenance of dampers, actuators, and control sensors are critical to economizer performance and energy savings.


What Are the Two Main Types of Economizers?

There are two main types of economizers in HVAC systems. Each has advantages and applications.

Air-Side Economizers

Air-side economizers are the most common type found in commercial buildings. These systems directly bring cool outdoor air into the building through the HVAC system. They’re particularly effective in climates with frequent cool, dry weather conditions.

Water-Side Economizers

Water-side economizers cool a building’s chilled water loop by circulating it through a cooling tower or fluid cooler. While they require more space than air-side units, water-side economizers can provide “free cooling” at lower outdoor temperatures. This makes them suitable for data centers and other facilities with high cooling demands year-round.


Applications for Economizers

Economizers are well-suited for a variety of commercial and institutional buildings, offering substantial energy savings in the right applications.

Commercial Buildings

Office buildings, retail stores, and schools are prime candidates for economizer systems. These buildings often have predictable occupancy patterns and substantial cooling needs during business hours, allowing economizers to maximize their efficiency.

Data Centers

Data centers, with their constant need for cooling regardless of outdoor temperatures, can benefit greatly from economizers. Even in hot climates, the high internal heat loads of data centers make economizer systems a valuable addition to their cooling strategies.

Healthcare Facilities

Hospitals and other healthcare facilities, which require consistent indoor air quality and temperature control, can use economizers to reduce energy costs while maintaining strict environmental standards. The continuous need for proper ventilation and temperature management makes economizers a practical choice for maintaining operational efficiency in these settings.


Energy Savings

The energy-saving potential of economizers is significant, with many buildings seeing reductions in HVAC energy consumption between 30% and 60% annually. However, the exact savings depend on several factors:

Large commercial buildings have greater internal heat loads, increasing the need for cooling. 

Temperate and dry regions with wide temperature swings allow for wider use of economizers — applications are limited in hot, humid areas.

Larger air handlers generally serve more extensive facilities with higher cooling loads. Savings from the economizer scale up accordingly.

Wider differentials between indoor and outdoor conditions allow greater use of “free cooling” and higher savings.

Facilities with high occupancy and extended operating hours have greater energy demands. Economizers reduce consumption more in these buildings.

Beyond energy savings, economizers offer additional benefits:

  • Improved indoor air quality through increased ventilation
  • Reduced wear on mechanical cooling components
  • Potential for smaller HVAC equipment sizes in new construction

Moreover, economizers can contribute to meeting building standards for energy efficiency, aiding in certifications such as LEED or ENERGY STAR. Businesses focused on environmental sustainability can leverage economizers to lower their carbon footprint, aligning with green building practices and corporate responsibility goals.


Economizer Maintenance Requirements

To ensure optimal performance and longevity, economizers require regular maintenance. Building managers should schedule periodic checks and services to keep their systems running efficiently.

Regular Inspections

Quarterly inspections should include:

  • Checking damper operation and seals
  • Verifying sensor accuracy
  • Testing actuator response to control signals

Annual Servicing

More comprehensive annual maintenance typically involves:

  • Calibrating sensors and controls
  • Cleaning or replacing filters
  • Lubricating moving parts
  • Checking for any signs of wear or damage

Addressing Common Issues

Some frequent economizer problems to watch for include:

  • Stuck dampers
  • Inaccurate sensor readings
  • Unbalanced airflow

Prompt attention to these issues can prevent energy waste and ensure the economizer continues to provide optimal benefits. Training maintenance staff on economizer systems and keeping detailed records of inspections and repairs can further enhance system reliability. 

Today’s Homeowner Tip

A qualified technician should check economizers at least annually. Neglecting maintenance checks can lead to economizer problems such as stuck dampers, inaccurate sensor readings, and unbalanced airflow, which reduce energy efficiency.


Economizer Installation Considerations

For building owners considering adding an economizer to their HVAC system, several factors come into play.

Retrofit Vs. New Installation

While it’s possible to retrofit an existing HVAC system with an economizer, new installations typically offer better integration and performance. Retrofits may require modifications to ductwork and controls, which factor into the decision-making process. Consulting with HVAC professionals during the planning phase can help determine the feasibility and cost-effectiveness of retrofitting an economizer to existing systems.

Climate Suitability

Economizers are most effective in climates with frequent cool, dry weather. In hot, humid regions, the potential for energy savings may be limited, though still possible in certain applications like data centers. A thorough analysis of local weather patterns and building-specific cooling needs can help determine the suitability and expected performance of an economizer in any given climate.

System Sizing

Proper sizing of an economizer in relation to the overall HVAC system is crucial for optimal performance. An undersized economizer won’t provide maximum benefits, while an oversized one may lead to unnecessary costs and complexity. Engineering assessments and load calculations by experienced HVAC professionals can ensure that the economizer system matches the building’s cooling requirements.


Economizer Cost Considerations and ROI

While economizers represent an additional up-front cost, their potential for energy savings often results in a quick return on investment (ROI) for commercial buildings.

Payback Period

Many buildings see a payback period of one to three years on their economizer investment, depending on local energy costs and climate conditions. After this period, the energy savings continue to benefit the building’s bottom line. Detailed energy audits and monitoring can provide insights into the actual savings and operational efficiencies gained, helping to validate the ROI.

Long-Term Value

Beyond immediate energy savings, economizers can contribute to:

  • Extended equipment life because of reduced mechanical cooling operation
  • Improved indoor air quality, potentially boosting occupant productivity
  • Compliance with energy efficiency standards and green building certifications

Including the potential for increased property value and appeal to environmentally-conscious tenants or buyers, the long-term benefits of economizers extend well beyond initial cost savings. Building owners and managers can leverage these advantages to create more sustainable, energy-efficient environments that support both economic and environmental goals.


Final Thoughts About Economizers

Economizers represent a smart investment for many commercial building owners and managers looking to optimize their HVAC systems. By leveraging cool outdoor air for free cooling, these systems can dramatically reduce energy consumption and operating costs. While not suitable for every climate or building type, economizers offer substantial benefits in the right applications.

As energy efficiency continues to be a priority in the commercial building sector, economizers stand out as a proven technology that can deliver both immediate and long-term value. With proper installation, maintenance, and operation, an economizer can be a key component in a building’s strategy for reducing its environmental footprint and operating expenses. Building owners considering an economizer should consult with HVAC professionals to determine the best solution for their specific needs and local conditions.


FAQs About Economizers

Can I install an economizer on my home’s HVAC system?

Most residential HVAC equipment does not support adding an economizer. Residential units lack the physical space and control integration needed. Also, energy savings rarely offset any retrofit costs.

How often does an economizer need maintenance?

You should have your economizer inspected at least quarterly. Once a year, have your sensor calibrated and test the unit’s functionality. Critical components,  like dampers, may need repairs or replacement every five to seven years.

What are the disadvantages of using an economizer?

Economizer drawbacks include a higher outdoor air intake, dragging in dust and pollen, possible added noise from intake fans and dampers, and the need for regular maintenance. However, these issues are usually minor compared to energy savings.

Can an old HVAC system be retrofitted with an economizer?

It’s often possible to retrofit an existing air handler or rooftop unit with an economizer. You must have an assessment of needed structural and ductwork modifications to perform the retrofit.

What is a dry bulb economizer?

A dry bulb economizer is a component of cooling systems that improves energy efficiency. It uses outdoor air for cooling when conditions are favorable by comparing the outdoor air temperature (or dry bulb temperature) with the indoor air temp. Dry bulb economizers have three components: dampers to control airflow, sensors to measure air temperatures, and a control system to manage operation.

Editorial Contributors

Lee Ann Merrill

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Full Bio

Chicago-based Lee Ann Merrill has decades of experience writing and editing across a wide range of technical and scientific subjects. Her love of DIY, gardening, and making led her to the realm of creating and honing quality content for homeowners. When she's not working on her craft, you can find her exploring her city by bike and plotting international adventures.

Katelynn Ward

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Full Bio

Katelynn Ward is a home warranty writer at Today’s Homeowner. She attended Eastern Kentucky University, where she earned her Bachelor’s degrees and her Master’s Degrees.
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