Commercial HVAC Equipment's Expected Lifespan If you keep up with suggested maintenance, the average life expectancy of commercial HVAC systems is 15 to 20 years.
On average, business owners can expect the life expectancy of commercial HVAC systems to be anywhere from 10 to 20 years before they need major repairs. However, there's always a risk that faulty parts and minor issues will shorten the life of expensive components.
Depreciable life of air conditioner. The depreciable life of an air conditioner unit was initially 27 years for residential properties and 39 years for commercial properties. This meant that you had to wait for 39 years to claim the repair expenses incurred during the life of your HVAC system.
If your commercial HVAC system is at least 15 years old and is starting to look like a big hunk of metal rusting away on top of your building, then it's high time to replace it. Keep in mind that old, shabby commercial HVAC systems are significantly less efficient and more expensive to maintain than a brand-new system.
14 to 20 years old: This is the average life span of well-maintained HVAC equipment. A breakdown at this age may warrant a replacement.
Installing a new HVAC system ranges on average from $5,000 to $12,500. Several factors influence your HVAC replacement cost, including the size and layout of your house, the reusability of the ductwork, the system's energy efficiency and the complexity of the project.
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.
The cost to replace your HVAC unit varies depending on the size and energy usage of the system, but for a rough estimate, you should expect to spend between $7000 and $30,000. One important thing to take into account is that you will need to factor in additional expenses such as installation, permits, and other fees.
The main reason is that commercial systems are built to handle more equipment, which requires more energy and regular maintenance. They have professional ventilation and airflow controls, and their warranty and lifespan factors also differentiate them.
Standard warranty lengths for commercial AC units typically range from one to five years, with options to purchase extended warranties for prolonged coverage. Longer warranties can offer peace of mind, as they ensure support over a more extended period, which can be critical for high-use or critical systems.
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.
In general, most HVAC systems will last 15 to 25 years, but depending on the type of system and other contributing factors, that estimate can be highly variable. Even with HVAC maintenance and regular repairs, eventually, even the best boilers, furnaces, heat pumps, and air conditioners today will run their course.
Most commercial buildings have a 39-year life, although you can speed up the process and claim your depreciation in less time.
If you have a commercial real estate HVAC system, the tax life increases to 39 years. However, a standalone HVAC unit has a much lower tax life of only seven years.
What Is The Lifespan Of A Commercial Duct System? A well-constructed and well-maintained commercial duct system should have a minimum lifespan of 15–25-years. This is the portion of your HVAC system that should last the longest.
A central air conditioning unit has a similar lifespan of 15 or 20 years, though some models can last as long as 30 years with diligent maintenance and regular service. However, there may be a point when older models may need parts or refrigerants that are no longer made.
Commercial HVAC Equipment's Expected Lifespan
If you keep up with suggested maintenance, the average life expectancy of commercial HVAC systems is 15 to 20 years.
The average cost of an HVAC service call is about $100 to $250, depending on the problem. The total hourly rate for an HVAC technician ranges from $65 to $150+ per hour, with additional parts costing anywhere from $40 to over $1000.
– Commercial HVAC technicians generally earn more than residential technicians due to the complexity and scale of their work. – Overtime and emergency calls can significantly boost an HVAC tech's overall earnings but may impact work-life balance.
Several factors can affect precisely how often you schedule commercial maintenance, but a good rule to live by is to schedule a maintenance check-up twice a year. The best time for maintenance is during the spring and fall since systems endure the heaviest strain in the following seasons of temperature extremes.
HVAC and home insurance
A homeowners policy may cover your HVAC in two ways: either through the dwelling coverage or the personal property coverage on your policy. Dwelling coverage may help pay to repair or replace a built-in unit since it's considered part of the home's structure.
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.
If your AC is newer, you may be able to replace just the outdoor unit. In many cases, this could lead to decreased energy efficiency or early AC failure. Installing a new AC costs between $3,800 to $7,500. Replacing just the outdoor unit can sometimes void the warranty.
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.
Due to wear and tear over thew years, most 20-year-old air conditioners are only about half as efficient as they were originally. The U.S. Department of Energy (DOE) estimates that with a new sir conditioner, you could save 20% to 40% on your electric bill.