How Much Does an HVAC Unit Replacement Cost?

Highlights

The typical cost range to replace an HVAC system is between $5,000 and $10,000, with a national average cost of $7,000.
The cost could be higher or lower for an individual homeowner depending on the unit chosen, the cost of labor, the accessibility of the unit, the removal of the old unit, and the climate where the home is located.
Homeowners may need to replace their HVAC unit if they notice higher than normal energy bills, an uneven home temperature, unusual noises, or excessive dust, or if their current system is older than 15 years.
HVAC unit replacement is a very specialized project that requires a professional. Incorrectly installing a new HVAC system can lead to costly repairs or even injury.

Your HVAC system is responsible for maintaining a comfortable indoor temperature year-round and purifying the air by eliminating dust and allergens. If your HVAC unit is not functioning efficiently, it may be necessary to consider replacing it. According to HomeAdvisor, replacing the entire HVAC system can cost between $5,000 and $10,000, with an average national cost of $7,000. The cost per square foot ranges from $25 to $60 and is dependent on factors such as the size of the unit, brand, efficiency rating, house size, and ductwork length. Homeowners can expect to pay anywhere between $1,500 to $12,500 for new installations, which may include labor costs ranging from $500 to $2,500. Retrofitting a forced or central-air heating system is usually more costly than replacing an existing unit.

Factors in Calculating HVAC Unit Replacement Cost

The cost of replacing an HVAC unit can be influenced by multiple factors, such as the cost of the new unit, installation fees, labor costs, accessibility, disposal fees for the old unit, climate, and the age and condition of the home. As a result, prices may deviate from the national average.

New Unit

The price of a brand and unit size determines the cost of a new HVAC, which may range from $1,000 to $10,000. A new furnace ranges from $1,000 to $4,000, while an air conditioner costs $1,500 to $8,000. Homeowners should ponder whether investing in a more energy-saving model will result in long-term savings on their energy bills.

Labor

The cost of labor, ranging from $500 to $2,500, is generally incorporated into the total installation expenses. If the existing HVAC system is being substituted with a new one, the project duration may vary from 6 to 10 hours, depending on the size and intricacy. In the case of new ductwork, installation time may increase by 1 to 3 days.

Installation and Accessibility

There are three types of installations for an HVAC unit: a change-out installation that includes a new heating and cooling system, a full installation that includes all HVAC equipment and ductwork, and a full install that also includes a zoning system and any other additional features. The more difficult it is to access the existing HVAC system, the more expensive the replacement will be. If the HVAC unit is in a historic home, in a small attic or an attic with blown-in insulation, or if the HVAC unit requires custom-made pieces, it will add to the price of the installation.

Removal and Disposal

The cost of replacing an HVAC unit usually covers the expenses for taking out and getting rid of the old equipment. It’s important for homeowners to ask their HVAC service provider about the fees for removal and disposal.

Local Climate Conditions

The climate in various areas of the United States can drastically differ, resulting in varying requirements for homes. For instance, a house in the South should have an AC unit that is powerful enough to cool it sufficiently during hot summers. On the other hand, a house in the Northern part of the country will necessitate a bigger heating capacity, leading to increased expenses.

Home Age and Construction

Efficient cooling and heating of your home depends on the level of insulation and size of your home. For instance, a bigger home like a 2,000 square foot, will require a larger AC unit, leading to higher installation costs. In contrast, energy-efficient windows with quality insulation, devoid of cracks will necessitate less AC capacity to maintain a comfortable temperature. Other factors affecting cooling and heating may include insulation in areas such as the basement, foundation, roof, flooring, and attics.

Additional Costs and Considerations

Additional price factors and considerations must be accounted for when budgeting for HVAC unit replacement costs. These factors may encompass ductwork, insulation and thermostat installation, adding zones, additional upgrades and add-ons, furnace and air conditioner replacement, asbestos removal, and potential savings obtained through rebates.

Ductwork

The replacement of HVAC ducts can cost anywhere from $500 to $2,000. In cases where only a section of the ductwork requires replacement, homeowners can anticipate spending approximately $10 to $20 per linear foot. Ductwork installation typically takes 2 to 4 days of labor. It is recommended that homeowners replace their ductwork alongside their entire HVAC system to ensure there are no dust or allergen buildup and to guarantee a leak-free system.

Adding Zones

The cost of an HVAC system can increase by $2,000 to $3,000 when additional zones are added. When a new system is installed, homeowners may expect to pay anywhere between $7,500 to $12,500. Zoned systems function by utilizing a unique thermostat for each section of the house. In the ductwork, dampers regulate the amount of heating and cooling required for each zone based on their specific needs.

Insulation

Although insulation is not typically included in an HVAC unit installation, individuals residing in older homes with chilly and drafty rooms during winter and sweltering upper floors and attic during summer should contemplate its installation. The cost for insulation may range from $1,000 to $2,100; however, it has the potential to decrease heating and cooling expenses by 10 to 15 percent.

The efficiency and cost-effectiveness of HVAC systems can be improved by insulating their ductwork. Such insulation can prevent the formation of condensation, which in turn eliminates the presence of mold and mildew.

Hidden HVAC Installation Costs

It is possible that additional expenses for AC installation exist and were not stated in the HVAC estimate. It is recommended to take them into account. Inquire with the air conditioning contractor regarding whether the following expenses are included in their initial quotation.

Is a permit required from your local city or county building department?
Does the unit also require an inspection by a representative of the building department to ensure the system is up to code?
Are there any potential labor or disposal costs involved? For instance, 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.

Remember that if there is any need for extra work like plumbing or electrical work, getting rid of an old system, fitting the HVAC system at a new site, making changes to the framing or surfacing of your home, or ensuring that any systems comply with codes during the installation process, the cost of your home’s new HVAC installation will increase.