2nd-hand aircon demand heats up ahead of El Niño

MANILA, Philippines — As the country braces for a super El Niño, more than 115,000 people belong to a Facebook group where users buy second-hand air conditioners at significantly lower prices than new units, despite concerns over higher electricity costs, maintenance expenses and potential safety risks.

Businessman Peejay Lim sold his two-year-old, 1.5-horsepower non-inverter window-type air conditioner for P4,500 on Sept. 29, far below its original price of more than P20,000.

In his post, Lim said the unit had no issues, cooled the room quickly and had been used “fairly” at about 70 percent of its capacity.

“Someone bought it immediately after I posted,” he said.

The transaction reflects a thriving second-hand aircon market in the Philippines, where up to 300,000 used units are sold annually, equivalent to about one-third of new-unit sales, according to studies cited in the ninth ASEAN Energy Outlook report released earlier this month.

The report noted that price remains the primary consideration for consumers buying appliances, often outweighing energy efficiency.

“The lower upfront price of second-hand aircons outweighs energy efficiency considerations in purchasing decisions, potentially leaving lower-income consumers exposed to higher electricity costs over the remaining life of the appliance,” the report stated.

Lim said he sold his window-type unit because his home in Marikina is undergoing renovation.

“We want everything new,” he said. “We also want to refresh good energy inside our home.”

According to a 2022 journal article by Babette Never of the IDOS German Institute of Development and Sustainability, sales of second-hand air conditioners among micro and small enterprises typically peak from February to May, coinciding with the summer season. During off-peak periods, these businesses turn to repair and reassembly services.

Second-hand units are commonly sourced from condominium buildings, hotels, offices and large restaurants undergoing renovation or demolition, the study said.

Most units sold are window-type models with capacities ranging from one to 1.5 horsepower.

Never’s study, titled “Green and Social Regulation of Second-Hand Appliance Markets: The Case of Air Conditioners in the Philippines,” found that the industry is thriving among middle-class consumers seeking affordable appliances.

“There was high agreement among interviewees that the competition in the second-hand aircon market is strong, as profit margins are high,” the article said.

“As the very poor cannot afford aircons, individual customers are mostly middle-income enterprises or middle-class people looking for a bargain,” it added.

Costs and risks

While buying second-hand air conditioners is not inherently problematic, poorly maintained or defective units can prove more expensive and riskier in the long run.

Meralco Power Lab manager John Pocholo Pabilona warned that even failing to clean an air conditioner’s indoor air filter can increase electricity costs.

“It can already incur around P95 monthly for a one-horsepower unit,” Pabilona told The STAR. “There are other cases where aircons not maintained for a year can incur an additional P500 to P600 per month.”

Meralco Power Lab tested a 2.5-horsepower floor-mounted air conditioner with a baseline electricity cost of P3.36 per hour.

After three years without maintenance, the cost rose by 17 percent to P3.93 per hour. Cleaning the unit brought the figure down to P3.39 per hour, nearly returning it to baseline.

Air conditioners typically last five to 10 years, Pabilona said, during which newer and more energy-efficient models become available.

Inverter-type air conditioners are now 30 to 70 percent cheaper than conventional models, he said.

Unlike traditional units, which operate their compressors at full capacity during cooling cycles, inverter models slow down their compressors once the room reaches the desired temperature, reducing electricity consumption.

Wear and tear also raises concerns about the structural integrity of second-hand units.

“Given the wear and tear of our products, the fan and the compressor are definitely more prone to breakage over time,” Pabilona said.

Refrigerant leaks pose another concern. The compound absorbs heat from inside a room and releases it outdoors. Leaks, combined with electrical sparks or an overheated compressor, can create fire risks.

To address these concerns, the ASEAN report urged the government to strengthen minimum energy performance standards to ensure that appliances passed on to subsequent households meet higher efficiency requirements.

It also called for stricter product registration, testing and enforcement to limit the entry of inefficient appliances, alongside targeted financing and replacement programs.