All-New HVAC System. Replacing an existing AC unit will cost anywhere from $3,906 to $8,016 for most people. This cost assumes you already have the required ductwork and electrical setup to simply replace the old unit. Installing a new AC unit from scratch requires adding new ductwork, which increases the overall cost.
In areas with low labor costs, an HVAC replacement for a home under 1,500 sq. ft. could cost as little as $5,000. For a home more than 3,000 sq. ft. in a higher cost-of-living area, a new AC and furnace could cost more than $20,000.
Average New AC Unit Costs
The average cost of installing a new central air conditioner in 2024, including equipment and labor costs, is $5,750 for a 3-ton unit in a 2,000-square-foot home. On average, a new AC unit cost will fall between $3,300 and $7,800.
While every unit is different, and every homeowner has a different understanding of when their central air conditioner is broken beyond repair, it's fair to say that, with proper maintenance and care, you can expect a good 15 to 20 years of cooling from a new high efficiency air conditioning system.
You can, although a technician will typically recommend that you replace both the inside and outside units. Before replacing anything, however, make sure you really need a replacement -- not just a repair.
Does homeowners insurance cover air conditioner replacement? If your air conditioner is damaged or destroyed due to a covered peril, such as lightning or a windstorm, your homeowners insurance policy may pay to repair or replace the unit, up to your coverage limit and minus your homeowners insurance deductible.
Unlike furnaces, air conditioners are often outdoors and exposed to extreme temperatures throughout the year, which shortens their life expectancy. Modern air conditioners can last between 15-20 years, and older air conditioners last around 10-12 years.
A typical air conditioner installation can take anywhere from 4 to 8 hours to complete. In some instances, this can take longer depending on the scope of the project.
During spring and fall, most people aren't running their HVAC systems as often which, in turn, means HVAC companies are not as busy and are not selling as many new units. This drop in demand enables them to offer deals on their services and equipment.
The Cost of Equipment and Tools
This equipment and tools can be expensive, and the cost is passed on to the consumer in the form of higher service fees. Additionally, HVAC technicians must maintain their equipment and tools to ensure that they are functioning correctly, which adds to the overall cost of their services.
Air conditioning units are cheapest during the cold months just before the manufacturers release their new models. At that time, you can get the best discounts because retailers want to make room for the new ones. However, winter is a terrible time to install any kind of AC that needs a professional.
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.
Generally, you can install these air conditioners yourself if they don't require modifications to your home — in fact, some units are designed explicitly with DIY installation in mind. Installing a central air conditioner is more complex, but you could consider doing it yourself if you're confident in your DIY skills.
American Standard air conditioners stand out as one of the premier central air conditioning brands in the industry. With a reputation for fewer repair calls compared to other brands, they offer reliability that homeowners can trust.
Central air conditioning systems can last anywhere between 10 to 30 years, with most averaging around 10 to 15 years total (1). Keep in mind, the lifespan of your air conditioner depends on how much you use it, your local climate, what type of AC it is, and if your house is well insulated and air sealed.
The cost of replacement for an air conditioner in a residential home can range between $5,500-$19,000. This includes labor and permit fees. This range also covers a variety of system sizes and levels of sophistication, including variable-speed AC systems.
It costs an average of $5,955 to install a new AC, but prices commonly range from $3,906 to $8,016, depending on the unit's size and type. A pro can provide an accurate quote based on your needs. The key to beating the heat this summer is running a good AC.
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.
According to HomeGuide.com, the average cost to replace the HVAC units is $5,000 to $11,000; to replace the units with ductwork runs between $7,000 and $16,000 in total.
The constant running of your AC unit will reduce pressure in the evaporator, or cooling coil until it freezes over, according to Cool Today. This is why in some cases, this constant running can be dangerous.
The average lifespan of an air conditioning system is 10-15 years. Central air conditioner lifespan is one of the more important factors to consider when planning to invest in a replacement unit. If your unit is close to ten years old or older, you may want to consider replacing it instead of repairing it.