The cost of AC replacement can range from $3,890 to $7,951, according to Angi, but some installations can cost as much as $12,000. The average is $5,920. However, a basic system can cost much less at around $1,500. If you’re considering an AC replacement or installation, the information below will help you understand what goes into calculating the costs. We’ll also offer valuable insights to help you save on your next air conditioning system.
How AC Replacement Costs Are Determined
Replacing an air conditioner is inherently costly. The price of equipment is a major consideration but just one variable. How your local HVAC contractor determines the total cost of the project depends on the following:
Type of Air Conditioner
While a central AC may cost $2,500 to $4,500, the total installation cost may range from $3,500 to $7,000, based on 2024 prices listed by Angi. A ductless split system costs around $2,000 to $3,000. However, the total installation price ranges even more widely due to numerous variables, so you could spend from $1,200 to $10,000. Window units tend to be the least costly, while heat pumps and geothermal systems are on the high end.
System Size/Capacity
An air conditioner’s size refers to its capacity, which is measured in British Thermal Units (BTUs) and tons. Its BTU rating shows how much heat an AC can remove in an hour. One ton of AC capacity equals about 12,000 BTUs. Generally, you need 1 ton of cooling per 500 to 600 square feet of space.
The more BTUs an AC can remove, the more it costs. So, the larger your home, the more you can expect to spend on AC replacement. However, the right-sized unit is also determined by factors such as whether a room/area is naturally warmer or cooler, has high ceilings, or you install ceiling fans (which improve air circulation and reduce cooling demand).
Energy Efficiency
Air conditioners with a higher seasonal energy efficiency ratio (SEER) can save money on energy costs over time but cost more upfront. The minimum requirement is 14 SEER but some ACs go up to 27 SEER. If your locale isn’t super hot and the cooling season doesn’t last as long as other areas, you may save by installing a lower-SEER unit. Your local HVAC contractor will help you understand the options.
Brand
There are many AC brands. Some are known for their reputation and reliable, long-lasting equipment. It usually doesn’t pay to go with a lower-quality brand. However, many top brands, including Lennox, Trane, and Carrier, offer a range of products at different prices. This can help strike a balance between quality and cost.
Labor
Most AC installers charge by the hour for labor. Depending on your local HVAC contractor’s fee structure, you’ll most likely pay anywhere from $500 to $2,500 in labor for an AC replacement project.
Other Factors
When you receive an AC replacement quote, the company may also include the following in its calculation:
- Old System Removal: Many HVAC contractors will remove and dispose of your old system (and add this service to the total price). Hiring a service provider to remove it separately can cost up to $200.
- Zones: Setting up multiple cooling zones is an option for larger homes and those with multiple floors. Zoning requires multiple thermostats, more components, and possibly more than one AC system.
- Permits: The cost of a permit varies by region and municipality. Obtaining a permit and having a licensed professional install and inspect your AC is a requirement. Otherwise, you risk fines, liability, insurance issues, and reducing the value of your home.
- Warranties: Central ACs usually come with a 5- to 10-year manufacturer’s warranty but you can purchase an extended warranty for $100 to $500.
- Ductwork: If you don’t have existing ductwork or your duct system needs extensive repairs, you could spend thousands of dollars more.
- Electrical/Plumbing: To meet electrical requirements, central AC units must have a dedicated circuit, a 240-volt connection, and 15 to 60 amps of power. A drain line is needed to remove condensation collected from the air. Therefore, an electrician’s and plumber’s labor fees must be considered.
How to Save on the Cost of AC Replacement
A well-maintained air conditioner can last longer, prolonging the time until you need a new one. However, AC equipment must eventually be replaced. Its hard-working components will ultimately succumb to wear and tear and repairs will become more expensive. More efficient and reliable systems are coming on the market all the time. Despite its cost, replacing an AC has many benefits, and there are a few ways you can save.
Consider AC Replacement Before Your System Fails
Is your old AC still working and providing the cooling you need? That’s something to appreciate. However, there are other signs an air conditioner may be nearing the end of its time. These include:
- Excessive noise
- Musty odors
- Uneven cooling
- Frozen coils
- Higher energy bills
- High humidity
- Damaged wiring
Replacing it before the end enables you to:
- Save on the cost of emergency repairs
- Research to find a high-efficiency unit suited for your home.
- Avoid rushing into a decision that increases costs over time.
- Schedule AC replacement during the off-season when prices are lower.
Ensure Your HVAC Contractor Provides an In-Home Consultation
A free quote by phone or email is convenient. However, it doesn’t let a technician perform a thorough assessment. Sizing an air conditioner requires knowing more than your home’s square footage and the AC model you currently have. An in-home evaluation enables an HVAC contractor to take more precise measurements, look for leaky ducts, and determine if your electrical system can handle the increased load. You also get a precise quote that reduces the risk of surprises after signing the contract.
Choose a High-Efficiency Air Conditioner
An air conditioner’s seasonal energy efficiency ratio (SEER) measures its cooling efficiency over the season. Modern AC units must be rated at least 14 SEER to meet current regulations. The higher the SEER rating, the less energy a system uses to cool your home. Although a more efficient AC unit costs more upfront, lower utility bills over time can offset some of the difference in price over a less efficient model.
Replace Your AC and Furnace Together
By scheduling furnace and AC replacements simultaneously, you avoid extra contractor visits and their associated costs. Timing is everything. You may get a discount for replacing both at once. The best time to schedule air conditioner replacement is in the spring or fall when HVAC contractors are less busy. Discounts and other incentives are more common then.
Replacing your AC and heating units also ensures components match, eliminating efficiency and repair issues due to incompatibility. You have all-new equipment that won’t need repairs for a while. Plus, their warranties will be in sync and you will avoid potential issues with warranty coverage due to mismatched components.
Invest in a Smart Thermostat
Older thermostats and some basic ones today will only turn your AC on or off. A manual thermostat will let your system constantly run unless you switch it yourself. However, a programmable or smart thermostat can monitor indoor temperatures and adjust your AC as needed. Therefore, your AC system can provide just the right amount of cooling. Smart models can take things further with the following:
- Automatically adjust the temperature based on your schedule
- Let you monitor and control an AC from anywhere
- Set specific temperatures for each room
- Track your energy usage
- Reduce energy consumption and your carbon footprint
Look for Tax Credits, Rebates, and Other Incentives
The following opportunities to save on AC replacement may be available to you:
- Federal Income Tax Credits: These are available to homeowners who install energy-efficient air conditioners and other equipment. You can be eligible to save up to $3,200 annually through 2032 (check with the U.S. Department of Energy to learn more).
- Utility Company Rebates: Many local utilities offer rebates for switching to high-efficiency air conditioners. Contact your local power company or HVAC contractor for more information.
- Manufacturer’s Rebates: Product rebates and cash-back rewards are another way to save. More significant rebates tend to be available for high-efficiency air conditioners than lower-cost, less-efficient ones. Discounts may also be available for certain items depending on the time of year.
Apply for Financing
Many HVAC contractors offer financing options for new equipment. These won’t make AC replacement cheaper, but they allow you to pay for it over time, which helps manage the costs. Look for payment plans with low interest rates and flexible terms.
Contact Air Stars for Affordable AC Replacement
Air Stars provides professional heating and cooling services in Marion County, OR, and nearby areas. When it’s time for AC replacement, you’ll receive an honest and accurate quote on the cost. We also have special offers to help you save upfront and maintenance plans to reduce repair costs over the life of your HVAC system. For more information or to book service, call (503) 809-5831 today.
