If your heating or cooling system is getting up there in age, it’s likely that you’re thinking about replacement. One of the biggest questions that homeowners have is what the average HVAC replacement cost is. Knowing the answer will allow you to properly prepare your budget when you go to purchase your new HVAC equipment. We’ll dive into the details about replacement costs and explain the factors that influence them.
What Is the Average Cost of HVAC Replacement?
Your HVAC system replacement price will typically run $6,300-$14,700. On the lower end of the spectrum is replacing a single appliance, like your furnace or your central air conditioner. On the higher end is a combined furnace and AC replacement.
Factors That Affect HVAC Replacement Costs
When determining the cost for your next HVAC replacement, it’s important to realize that it will vary. Understanding the key factors that go into determining overall cost can be highly beneficial. It can allow you to better narrow down the exact price range to get the HVAC replacement that you’re looking for.
System Size and Capacity
Two of the most influential factors for your new HVAC system cost are the size of your system and its capacity. Both heating and air conditioning systems with higher capacities produce hotter or colder air. The cost is typically more for higher capacity units than for those with lower capacities. For example, you can expect to pay more for a 3-ton air conditioner than you will for a 1-ton air conditioner. This is because larger spaces require heavier equipment to adequately control their temperature.
Energy Efficiency Ratings
The higher the energy efficiency rating for HVAC equipment, the more expensive it’s likely going to be. Higher-efficiency systems have more complex internal components to reach those efficiency levels. This adds to their construction cost, which raises their overall cost. It’s important to take into account both the up-front cost and the expected long-term energy savings while making your purchasing decision.
Ductwork Condition and Modifications
If you have outdated ductwork with a lot of gaps and leaks, purchasing a new HVAC system will go only so far. If you need to upgrade your existing ductwork or make modifications to accommodate your new system, the price for installation will go up. It’s best to have one of our HVAC technicians evaluate your existing setup and advise you about what needs replacement and what you can reuse.
Installation Complexity
Installation complexity covers a wide range of different tasks that technicians must perform to install certain units. For example, if you purchase an electric furnace, it’s much easier to install than a gas furnace. Installing the latter requires fuel lines and a ventilation system to dispose of the exhaust fumes. An electric furnace just needs wiring to operate. The more complex the installation is, the higher its price tag will be because of the increase in labor.
Permits, Labor, and Local Pricing
Depending on where you live, we may have to obtain a permit to install your new HVAC unit. The permitting cost will be included in the overall price of installation. Other factors that can influence the cost include labor and local pricing. Our technicians will be happy to provide you with a quote for labor on your new HVAC installation.
How to Budget and Save on HVAC Replacement
Purchasing a new heating or cooling system for your home can be quite costly. In fact, most homeowners like to finance the purchase to make it more manageable for their budget. Below, we’ll take a look at how to save on your HVAC replacement and ensure proper budgeting moving forward.
Repair vs. Replace Considerations
If you already have an existing system that’s experiencing a malfunction, you may be considering whether a replacement or repair is the best option. Typically, if your warranty coverage is still active, it’s best to simply repair your outdated unit. However, if the cost to repair your unit is equal to half the cost of a new unit, it’s typically best to get a new one. Additionally, if your warranty coverage has expired, you will likely want to put your money toward purchasing a new unit instead of frequently repairing your outdated one.
Financing, Rebates, and Tax Credits
Financing can be a make-or-break deal when it comes to purchasing a new heating or cooling system for your home. Most homeowners who can’t afford a high-efficiency system out of pocket can do so with favorable financing on approved credit. This opens up more doors for long-term energy savings and comfort for your family. Plus, installing a new system is great for increasing the resale value of your home.
Many local utility companies will provide you with a rebate on your energy bill when you show proof of a new system purchase. This is their way of saying thank you for reducing your home’s energy consumption. Additionally, there are tax credits you can take advantage of to further reduce the cost of purchasing a new HVAC unit for your home.
One of the most well-known is the Inflation Reduction Act of 2022. If you purchase a qualifying unit, you can recover up to 30% of the total cost of installation in the form of a tax credit. This will reduce your tax burden for the year. There are different limits set on how much you can claim based on the type of system you purchase and its efficiency rating. You may also find that your local, state, and municipal governments will offer tax credits when you show proof of a new system purchase.
It’s also important to note that many HVAC manufacturers offer discounts and specials on their products. For example, you’ll find the best air conditioning deals in the early spring and the best heating deals in the early fall. By timing your installation correctly, you can significantly reduce the up-front costs associated with it.
Choosing the Right Contractor
When it’s time to replace your air conditioning or heating system, you need to choose an HVAC contractor that you trust. Dowd Heating & Air is a trusted family-owned and -operated business, and we stand behind all the work that we do. We conveniently offer free estimates for system replacements so that you can plan your project without any pressure.
All our work comes with a money-back guarantee if you’re not completely satisfied. All our technicians are both NATE and EPA certified. This ensures that your warranty coverage for your new system remains intact after installation. We offer products from top-tier brands like Mitsubishi Electric and Trane. You can rest assured that we’re a full-service HVAC company that can assist with annual tune-ups as well as emergency repairs.
Ready to Plan Your HVAC Replacement?
Dowd Heating & Air is your reliable expert for HVAC replacement services. We install all types of heating and cooling systems, with both standard and high-efficiency options available. We’re a Trane Comfort Specialist and a BBB-accredited business with an A+ rating. We provide 24/7 emergency services and easy online appointment scheduling. We have over 28 years of industry experience, so you can’t go wrong when you hire us for your next HVAC installation job.
Frequently Asked Questions
When it comes to replacing a heating or air conditioning system, many of our customers are concerned with pricing. Below, we answer some of the most frequent questions we receive about pricing.
How Long Does An HVAC System Typically Last?
The overall lifespan of an HVAC system varies tremendously depending on numerous factors. Most furnaces will last anywhere 15-30 years, while central air conditioners last 20-25 years. Other influencing factors include the system’s brand name and the amount of maintenance it receives.
Can I Replace Just My Furnace Or AC Instead Of The Entire System?
If you have a furnace and a central air conditioning system, then they both use the same blower compartment to circulate air throughout your ductwork. As long as your blower compartment doesn’t have aging components, you can replace just your furnace or your AC condenser unit and evaporator coil. One of our technicians can let you know if we can do a simple furnace or AC replacement or if you need to replace your entire system.
Does A Higher-Efficiency HVAC System Really Save Money?
When you first start looking at HVAC equipment, you’ll realize that there are standard- and high-efficiency systems. High-efficiency systems cost more up front but use much less energy than standard-efficiency units. Whether you’ll really save money by purchasing a high-efficiency system depends on your local climate and how often you run your system.
How Long Does HVAC Replacement Take?
Most HVAC replacements can be completed within one business day. However, factors like your existing setup, accessibility to your unit, and existing electrical connections can all influence the installation time frame. When you call us to get a system replacement estimate, we’ll provide you with an estimated time frame for your specific installation.
