For a standard-efficiency air conditioner and furnace with simple duct layout, you can expect an average HVAC installation cost of around $10,000–$15,000, based on market research by the This Old House team. However, if you own a larger home and want premium-efficiency equipment, total project costs can exceed $20,000.
In most cases, heat pumps are the most efficient way to heat your older home. These super-powerful HVAC systems work by transferring heat from outside your home to the inside of your home and they also double as an air conditioning system in the warmer months—a win-win.
Central air conditioning systems are a sizable investment, typically ranging in price from nearly $3,800 to nearly $8,000. Key factors that determine what central AC will cost include the home size, the system's energy efficiency, ductwork and labor.
The $5,000 rule is an industry-accepted rule for determining whether to repair or replace an HVAC system. Multiply the age of your equipment by its estimated repair cost. If the outcome is under $5,000, you should probably repair it. If over $5,000, you should replace it.
An HVAC replacement cost is $7,500 on average. This range could be as low as $5,000 or as high as $12,500, depending on the type and size of your unit, the brand, and labor costs. Your overall cost for a new HVAC unit could reach $22,000 if you add new ductwork and additional features like a HEPA filtration system.
How much does a new HVAC system cost for a 2,000 sq. ft. home? The costs range from $6,224 to $11,434, depending on the system type and installation requirements. Key factors include system size, type, efficiency, and local labor rates.
Upgrading your HVAC system can lead to significant savings in the long run. By enhancing air sealing and insulation, you can ensure that your home is better equipped to maintain a consistent temperature without overworking your HVAC system.
On average, you can only expect about 15 years of reliable service from a central AC system. And that's only if you maintain your system well. So, if your home has an AC that's 20 years old or older, it's likely living on borrowed time. Here are all the reasons to replace your home's 20-year-old air conditioner.
The Inflation Reduction Act (IRA), effective through 2032, offers annual tax credits up to $2,000 for ENERGY STAR-certified heat pumps and other high-efficiency HVAC systems. This recurring credit can be claimed each year that eligible improvements are made.
Generally, the average cost to replace an HVAC system can run anywhere from $5,000 to $15,000 depending on the customers' needs. We know that putting that much money down on anything can be daunting, but for a system as crucial as an HVAC unit, you can never be too safe.
Homeowners insurance covers HVAC systems when the damage is a result of a covered disaster or peril, including high winds, fallen trees, theft, hail or even a fire. So if lightning strikes your unit and damages its electrical components, your homeowners insurance policy would probably cover it.
Better pricing: Since there's less demand for HVAC system replacement in spring and fall, your HVAC contractor might even offer their own savings incentives.
Gas Furnace: $3,000 – $6,000. Electric Furnace: $2,500 – $5,000.
As a replacement for old gas and oil boilers, pellet boilers are considered the best heating system for old buildings. Their great advantage is that they work with all conventional radiator systems and do not need to be replaced. In addition, pellet boilers have a significant cost advantage in terms of running costs.
Air leakage – if there are gaps and cracks in your home (under doors, around windows, through attic penetrations, around your foundation, etc.) warm air will leak into your home increasing the temperature, and potentially the humidity levels, in your home.
Federal Tax Credits
The Inflation Reduction Act (IRA) of 2022 makes tax credits available on high-efficiency HVAC units through 2032. It allows you to deduct 30 percent of the purchase and installation costs and caps the amount you can write off: Air conditioners, furnaces, boilers, and water heaters max out at $600.
The Inflation Reduction Act provides home appliance rebates for discounts on electric energy-efficient appliances like Induction cooktops, ranges and heat pump laundry appliances. Sign up to be notified when rebates are available in your state.
As an average homeowner, the answer is generally no as most remodeling projects completed at your personal residence can't be written off. However, there are certain cases that can qualify your bath remodel as tax deductible. One would be medically necessary changes.
Repair: If your furnace system is less than 15 years old and the cost of repair is less than half the cost of replacement. Replace: If your furnace system is more than 15 years old and requires a costly repair to maintain efficiency.
If your aircon is older than 10 years and plagued with ongoing issues, you might want to consider replacing your air conditioner. A benefit of replacing your aircon is that you will get a more energy efficient model which would ultimately save you a lot of money on power bills.
If you are installing a new central air system or replacing an old one. If you are changing out an older AC unit for a newer or similar one, the job will generally take one day, or eight hours – as long as the other components, like the ductwork, remain the same. This is what we call a changeout.
Many HVAC companies offer financing to their customers to streamline the HVAC replacement process and paying for it. Banks and credit unions may approve you for a personal loan, home equity line of credit, or a home improvement loan where loan proceeds are used specifically to make the upgrades your home demands.
Usually, it is a quick fix, but sometimes the failure can be caused by a much bigger problem. The most expensive part of an AC unit to replace and repair is the air compressor.
Overview: A typical full system HVAC replacement can range between $6,500-$15,000. Costs vary widely depending on various factors including the efficiency, type and size of the system you choose. Heating and air conditioning equipment is a big expense.