Oversizing HVAC systems can lead to significant energy waste and decreased system efficiency. When an HVAC system is oversized, it can result in short cycling, which reduces the system’s ability to dehumidify the air and remove heat efficiently. Additionally, oversized systems often operate at part-load conditions, which can decrease their overall efficiency. By applying diversity factors and accurately estimating cooling loads, engineers can design HVAC systems that are properly sized for the building’s needs, reducing energy waste and improving system efficiency.