Cost of new ac unit and installation

As with other home appliances, there are a variety of factors that affect the final cost for homeowners.

Type

There are various types of air conditioners at various price points. Central air systems with complicated ductwork tend to cost the most. Ductless air conditioning is an alternative option, though the price could also be high depending on the number of wall-mounted cooling units that are needed to cool the space. Window and wall units (ACs that are inserted into a sleeve) tend to be more economical, as are portable ACs that are hooked up to a window vent kit.

Size

AC units are usually measured in British thermal units, or BTUs. A general guideline is that you’ll need 20 BTUs for every square foot of interior space you wish to cool. Typically the more BTUs an AC has, the more expensive it will be, though this might differ depending on the brand of air conditioner.

Brand

Different brands sell appliances at different price points. While it’s advisable to do your research and shop around so you have the most options for your budget, you’re also going to have to consider what brands are more readily available—and which can be easily serviced—in your area.

Level of Efficiency

It’s not enough for an AC just to blow cool air—it should do it in a way that conserves as much energy as possible. Energy Star-rated appliances are noted as such for their energy efficiency, which means that you’ll save on utility costs each month. Keep in mind that a high-efficiency AC usually comes with a higher price tag, though you will realize savings over time through lower electricity bills in the summertime.

Method of Installation

Just like its price point, the way in which an AC is installed will lower or raise its total cost. If you are replacing a unit that already has all the basic components in place—for example, if you are installing a brand-new wall unit in a sleeve that’s already cut into the wall—then you’ll save money. But if you are looking to put an AC where there previously was none, it will cost more in installation.

This is especially true if you are upgrading a space to central air, which requires a a good deal of complex ductwork.

The exception to this, of course, is a portable AC unit, which can be moved from room to room as long as there is a window to vent it. There are many portable ACs that are quite budget-friendly as well as efficient, but they likely won’t stack up to the cooling power of more permanent installations.

Table of Contents

1. HVAC Unit Costs
2. What Factors Affect HVAC Replacement Cost?
3. Local Climate Conditions
4. Do You Need Ductwork Replacement?
5. Home Age and Construction
6. HVAC Unit Types
7. Hidden Costs
8. Evaluating Your Price Quotes
9. Frequently Asked Questions

HVAC replacement cost  can range from a minimum $3,200 to a maximum of $12,500, which would include installation of both a new central AC unit and gas furnace combo along with the labor work. If you need to replace ductwork as well, you can expect an additional $2,100 for a single story 2,000 sq. ft home.

HVAC Unit Costs

Most homeowners who are looking at replacing an HVAC system will be able to simply check what their old heating and cooling unit types were to make a decision as to which HVAC unit works best for their home. However, there are many combinations of heating units and cooling units that you can choose from depending on your local climate and home size needs. We have broken out below the average costs to install each different type of HVAC unit in order to give you an idea on pricing:

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What Factors Affect HVAC Replacement Cost?

HVAC installation costs will change depending on a few factors that are specific to your home and location. Here are the main things that your air conditioning contractor will assess in order to give you a total price quote for your replacement HVAC system:

• Local climate conditions
• Current ductwork conditions
• Home age and construction
• HVAC unit features such as size, brand, and energy efficiency (SEER)
• Top air conditioner brands and associated installation costs

Local Climate Conditions

Depending on where in the US your home is located, the local region’s climate can change dramatically. A home located in the South would need an AC unit with a size capable of cooling your home due to high temperature summers. A home in the Northern part of the US would need a much larger heating capacity as well which will affect costs. See the chart below for the average central air conditioner replacement costs by TONS.

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Do You Need Ductwork Replacement?

If you are replacing your current air conditioning system, it’s safe to assume that you already have ductwork installed. Ductwork delivers the conditioned air from your HVAC system throughout your home through vents often found in your home’s attic. However, with time ductwork can lose its efficiency or may need to be altered to work with your new AC system. New ductwork installation can tack on an additional cost anywhere from $2,100 to $4,000 depending on the level of complexity to install or alter. Plan to add a few days of labor to your HVAC replacement project if you do need ductwork replacement.

Home Age and Construction

The ability to cool and heat your home at maximum efficiency will depend a lot on how well insulated your home is currently and the size of your home. A 2,000 square foot home will need a much larger AC unit than a smaller home, which will impact installation costs. Also a house with energy efficient windows that are well insulated and sealed well with no cracks for air flow will require far less AC capacity to keep temperatures comfortable. Other factors that can affect this could be the insulation elsewhere such as the foundation, roof, attics, basements, flooring, and more.

HVAC Unit Types

A local and trusted HVAC service installer will be able to tell you best what features you may need or want for your home’s system. Higher priced AC unit costs will come with higher energy efficiency levels known as the SEER rating. The size of the unit will also make a difference in AC unit prices. The HVAC brand you choose will also impact total installation costs. Higher end central AC units will cost more upfront. However, better brands usually come with a longer lifespan, better warranties, and smarter technology built in to fully control your home’s temperature.

Hidden HVAC Installation Costs

There may also be some AC installation costs that are not included in the initial HVAC estimate but you will want to factor in just in case. These are the things you should ask the air conditioning contractor if the following costs are included in the initial quote they’re providing. Be sure to always ask these questions.

• If a permit is required from your local city or county building department. The unit will also require an inspection by a representative of the building department to ensure the system is up to code.
• If you live in an older home that has asbestos or lead paint, there may be an additional cost to test, remove, or replace the material.
• If any of the following requires additional work involved with the installation process – plumbing, electrical work, removal of an existing system, installing the HVAC system at a new location, modifying the framing or surfacing of the home, or bringing any systems up to code – it will also factor into the cost estimate for your home’s new HVAC installation.

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Evaluating Price Quotes for HVAC Installation

There are a quite a few factors to consider when determining what could affect the cost of a new HVAC system installation price quote. Some factors may cause your initial cost estimate to be higher or lower. It is advised to get at least four local price quotes from different qualified HVAC contractors. Let Modernize help connect you to reliable local contractors.

High Priced AC Installations:

• HVAC installation and replacements can vary drastically in price. These disparities could be due to the type of HVAC unit—how quiet an air conditioning system is, for example. We encourage homeowners to research their desired HVAC system and make sure it is the best suited for their homes and needs.

• HVAC units can also vary in total cost depending on hardware other than the main units themselves. The increasingly popular smart thermostat is often paired with a new residential HVAC unit, which could cost as little as $30 or as much as $300.

• High-end heating and cooling contractors will likely have more equipment and overhead, which may be seen in your price quote.

• HVAC unit warranties will also impact your total installation costs. Most HVAC installers offer manufacturer’s warranties that protect you from faulty system equipment. Some might offer additional guarantees for the total HVAC installation as well, covering potential damage to your roof (if applicable).

• Research and be aware of potential hidden HVAC costs— like needing permits and potential fines for your installation. Your heating and cooling quote should include a proper breakdown of how local or federal regulation applies to you and what your HVAC contractor will or will not do in that regard.

• • For example, if your installed HVAC unit’s Seasonal Energy Efficiency Ratio (SEER) rating is lower than 13, the Department of Energy might flag your HVAC contractor for selling it.

• • An HVAC system having an average SEER rating of 16 could mean saving upward of $400 annually in comparison to other lower efficiency options. Expect an analysis of what your bills should look like after your new HVAC installation, and how you should expect these heating and cooling energy costs to change in upcoming years.

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Low Priced AC Installations:

• If an HVAC contractor does not have proper insurance, they will often provide a lower bid. This may leave the homeowner responsible for HVAC laborer injuries or damages that occur. We recommend that homeowners always select a licensed HVAC contractor for their heating and cooling replacement projects.

• If a contractor doesn’t have a solid grasp of local policies or applicable local, regional, and federal incentives—like the ones found at the Database of State Incentives for Renewables and Efficiency, they may leave that to you and subsequently lower their fees since they have less paperwork to worry about. While a contractor may charge you for help navigating the bureaucracy of air conditioning regulation, a good contractor will assure your energy compliance in your area and maximize your return on investment utilizing expertise you may lack.

• Extremely low bidders may also be desperate for a new HVAC job leads, which is never a reassuring sign. Be sure to always vet your HVAC contractor before hiring for the job.

For any bid you receive you should always double check your final HVAC installation quotes for possible pricing errors. Errors can happen when trying to determine your full HVAC system installation costs. Communicate any and all questions and concerns with your air conditioning installer before you sign off on any contracts.

For a full list of price evaluation tips see our  homeowner’s guide to evaluating your HVAC cost estimates.

Frequently Asked Questions

How much does it cost to install different heating and cooling systems?

The average costs for different heating and cooling systems will vary by the brands, energy efficiency level, size of the unit needed for your home, and also what the local labor rates are for installation.

You can use our HVAC Installation Cost Calculator to get an average price for installation in your area and then talk to reliable local contractors about your specific project afterwards if you’d like.

• Central Air Conditioner Installation Costs: $3,500 to $7,600
• Ductless AC Installation Costs: $3,000 to $5,000
• Heat Pump Installation Costs: $5,000 to $6,500
• New Furnace Installation Costs: $4,000 to $6,500

What are the top factors that affect the cost of your HVAC installation?

The major factors that will affect the total cost of your HVAC installation can include:

1. Type of HVAC System Installed
2. Size of Unit Needed
3. Cooling – Heating Capacity Needed
4. Energy Efficient Levels – SEER or AFUE Ratings
5. Needing Ductwork Installation – Replacement
6. Local Labor Costs – Varies by Region
7. Seasonality – Local Climate Extremities

Read in depth about the details here on each of these cost factors and get an estimate on how much each HVAC system will cost to install in your area.

Can you negotiate HVAC Installation costs with contractors?

Negotiating the costs of your air conditioner installation with your contractor is definitely possible. You should always have backup resources to justify the local costs in your area for a new AC unit.

HVAC installation costs typically range from $3,500 to $7,525, but homeowners can reduce those costs by negotiating the contract price and terms with their contractor by getting multiple quotes from local contractors or using our cost calculator to get average local prices as a negotiating basepoint.

What are the top brands of HVAC systems?

When installing a new HVAC unit, brand and associated costs can be an important decision factor. A good HVAC brand can usually offer a price point to fit any budget from a low cost AC unit or furnace to top performing HVAC systems.

Some brands offer extensive warranties, boast incredible customer support teams, and offer smart home technology for your new air conditioner. It really depends on your budget and what you value the most in a new home heating or cooling unit and the brand of it. Like most things, you get what you pay for and should plan your budget accordingly when looking to install a new HVAC system in your home. See our review list of the the best air conditioner brands and top furnace brands.

How do you find a local reliable cooling and heating installer?

When you install a new home cooling or heating system, it can become an urgent situation if your home’s temperature starts to become extremely cold or unpleasantly warm. Finding a reliable local HVAC contractor fast is possible. The best strategy is to ask friends and family for recommendations first.

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