Last Updated: February 27, 2024
An HVAC (heating, ventilation, and air-conditioning) system is more than the metal box in the basement. The HVAC comprises multiple components inside and outside your home designed to run an integrated operation that affects comfort levels in your home – from maintaining consistent temperatures, regulating the humidity, and cleaning the air. HVAC systems control the overall climate of the house and make adjustments whenever we experience changes in outdoor temperature. During the winter season, the HVAC systems work to keep the indoor temperature at a comfortable level. In hotter times of the season, the HVAC systems regulate air temperature by providing the necessary cooling to keep the entire building comfortable.
Why Install an HVAC Unit
Proper heating, ventilation, and air conditioning are essential to maintaining occupants’ comfortable, healthy, and productive environment. For example, poor indoor air quality has been linked to different health-related problems, including dizziness, asthma attacks, and other respiratory problems.
The U. S. Department of Energy recommends that homeowners replace their HVAC system every 10 to 15 years. As the HVAC unit gets older, its components will wear down and perform at reduced efficiency, while downtime becomes frequent and expensive. The utility bill will get costlier to the house, never seems warm enough in the winter or cool enough in the summer. Sometimes an aging HVAC unit will also make unusual sounds, and you may notice more dust in your house than usual. Additionally, aging wiring in outdated systems may be a fire hazard and potentially dangerous situation for occupants.
HVAC systems not only regulate the outside temperature they also improve the quality of air. The air quality pertains to humidity, and a typical HVAC system will reduce the amount of humidity in the air so you can continue enjoying a cozy and pleasant atmosphere. Given that your entire HVAC system operates in an automated system, proper adjustments will be made right when needed. This makes your energy consumption more efficient as it gets rid of energy wasted on improper settings.
Cost of a New HVAC System
An HVAC unit serves both heating and cooling functions and consists up of multiple components.
Air Conditioner: A central air conditioner keeps your house cool by circulating air over refrigerated coils. The average installation cost for an air conditioner falls between $3,500 and $7,000, excluding ductwork. The overall cost will depend on the air conditioner’s size and whether any repairs need to be done to the existing HVAC system. You may also consider a ductless mini-split air conditioning unit suitable for setting specific temperature zones or for homes without ductwork. It can cost between $2,000 and $14,500, but the overall cost depends on the system size and number of air handlers.
Heat Pump: A heat pump employs thermal to transfer air from a cooler area to a warmer place. Replacing a heat pump on average will cost $4,000 to $8,000. Suppose you consider installing a geothermal heat pump that draws from the stable temperatures of the earth to maintain a steady temperature in the home. In that case, it may cost you about five times that price, averaging $15,000 to $30,000. However, installing a geothermal system is cost-efficient in the long run.
Furnace: A furnace is used to provide heating to the entire house. The furnace can use oil, gas, or electricity to power the home. Installing an oil furnace includes intensive work, like adding a chimney and an exhaust system. The replacement cost of a furnace may come around $2,700 to $6,400. High-efficiency furnaces are more expensive, and if any ductwork needs to be repaired or replaced, it will add to the project’s cost.
Boiler: A boiler heats your home using hot water forced through pipes. A boiler is a more advanced system than a furnace and generates comfortable, ambient heat rather than hot air passed through heat vents. The average installation cost of a boiler ranges between $1,500 and $3,500.
HVAC Installation Charges per Square Foot
Across the United States, home prices have risen substantially. HVAC installation costs are also affected, with the price per square foot in home construction rising locally and nationally. In 2018, the ductwork installation cost would range between $1000 and $4000 for a 1,200-2,200 square feet home. The HVAC installation cost per square foot depends on the size of the house. If you have a single-level, two-bedroom house, the HVAC cost would be less than a three-story family dwelling with five bedrooms. Below is the approximate breakdown of HVAC installation costs per square foot for new houses.
| Square Feet | Average Cost |
|---|---|
| 1,000 | $4,000 – $5,000 |
| 1,200 | $5,000 – $6,000 |
| 1,500 | $6,000 – $7,000 |
| 2,000 | $7,000 – $8,000 |
| 2,500 | $8,000 – $9,000 |
| 3,000 | $9,000 – $10,000 |
Factors Affecting HVAC Replacement Cost
The HVAC unit replacement cost for your home will vary based on climate, location, HVAC unit cost, house shape, labor charges, installation complexity, and removal and disposal fees for the old unit.
Local climate conditions: Climate conditions vary for different places, and they will dictate how efficient you need your unit to be. If your house is located in a hot region, it would need an AC unit capable of cooling your home in high-temperature summers. A home in a colder area would require a much larger heating capacity, which will affect costs. And if you experience freezing winters and boiling summers, you need a system to handle both efficiently. Please also note that both the heating and the cooling unit should be of equal quality as it may impact the overall efficiency of the HVAC system.
Ductwork: If you’re installing a new forced-air heating or cooling system, you need to install a new duct system in the house. If you are replacing your current HVAC system, you might have existing ductwork installed. Air ducts channels are responsible for distributing cooled or heated air throughout the building. With time ductwork can lose and may be subject to leaks due to wear and tear and may require air sealing to eliminate air loss. Two broad categories of ductwork are flexible and rigid. The type of ductwork you should use will depend on your HVAC requirement and can be determined by an HVAC professional. Re-installing the complete ductwork may cost anywhere from $1,000 to $4,000, depending on the level of complexity. If you only need to replace a section of ductwork, it may cost between $10 and $20 per linear foot while taking a few days to complete the installation.
Age and construction: Your house’s cooling and heating capacity will depend on the insulation, house condition. Energy-efficient home with well-insulated windows with no cracks for airflow will require less cooling or heating energy to keep temperatures comfortable. Other factors affecting the capacity to maintain temperature include the foundation’s condition, roof, attics, basements, flooring, etc.
HVAC Unit Size: HVAC units are measured in tons or BTUs, which is a calculation for the heat required to raise or lower your home’s temperature. You should ensure that your HVAC unit is sized according to the requirement. Selecting a smaller unit will constantly run to maintain the correct temperature, draw higher energy charges, and have a shorter lifespan. While an oversized unit may short cycle and shut off before completely cooling/warming other rooms.
Efficiency Rating: The efficiency rating for HVAC systems is calculated by Seasonal Energy Efficiency Ratio (SEER); higher SEER-rated units consume less energy to operate. Most HVAC systems have SEER ratings ranging from 14 to 21 SEERs. It is ideal to go for higher-rated units because of the proclaimed energy savings; however, high-efficiency units are expensive. A 21 SEER unit will cost almost double a 14 SEER unit, while a 16 SEER unit can add about $600-$1,000 more than a 14 SEER unit.
Additional Costs and Considerations
When budgeting to purchase a new HVAC for your house or replace the existing one, the unit price and installation charges are not the only factors. You need to consider additional factors that may not be included in the initial HVAC estimate. Also, check with your HVAC contractor if they have added this in their estimate.
You can divide the house into “zones” based on their particular heating and cooling needs if you have a ductless HVAC system. A zoned system will need a specific thermostat and other air-handling equipment to control that zone’s airflow. The more zones, the more gear you’ll need, increasing the price and also increase the installation time. If you are installing a new zone system, it will cost in the range of $7,500 to $12,500, while creating zones in your existing HVAC unit can increase the cost by $2,000 to $3,000.
If you’re installing whole-home humidifiers, dehumidifiers, or air cleaners with your new system, there will be an additional charge for these systems and increase the installation time.
Insulated ductwork can help your HVAC system run efficiently, eliminate condensation and save money on utility bills. While insulation costs come around m $1,000 to $2,100, it can lower heating and cooling costs by 10 to 15%.
If you live in an older home with asbestos or lead paint, you may incur additional charges to test, remove, or replace the material. In some places, only a licensed professional can remove asbestos from residential and commercial establishments. Asbestos removal charges come around $500 and $1,000.
In some locations, you need to take a permit from the local council to install an HVAC system. In some places, if the SEER rating of your HVAC is less than 13, the Department of Energy might flag the unit. Hence ensure to thoroughly research and get a complete breakdown of the applicable local and federal regulations from your HVAC contractor.
Bonus Tip – Beware of Low Priced Bids
If you receive an HVAC installation estimate that is considerably lower than the rest of the bids, tread carefully. Many times, contractors that offer the lowest rate may not be licensed or insured, but it will leave you responsible for HVAC laborer injuries or damages that occur. Contractors providing extremely low quotes may also be desperate for a new HVAC job, which is not a good sign. Always select a licensed HVAC contractor for your heating and cooling replacement projects.
Ensure that your contractor has a solid grasp of applicable local, regional, and federal regulations and incentives. While a good contractor may charge you for help navigating the bureaucracy, it will ensure that you are fully compliant and maximize your return on investment utilizing expertise you may lack.
Always double-check your HVAC installation bids for pricing errors and hidden charges.
While hiring an experienced, high-quality contractor is expensive, you need to consider this an investment for the future. As per DOE, around 30% of HVACs are installed poorly. If you hire a cheaper contractor that does a shoddy job, you may lose money if the system is not running as efficiently as advertised and may need to redo the whole installation, which will cost more time and money. Checking out reviews of a contractor is a great way to find out about other customers’ experiences. Search on Google or Facebook to read unbiased customers. You can also ask them to provide referrals from previous clients. Any reputable company will have these ready for you and should provide contact details so you can check that they’re legitimate. Prefer a business that has been around for several years rather than opting for a new startup and ensure they have experience in HVAC installation.
How to Save Money on HVAC Installation Costs
Install an energy-efficient HVAC unit with components that utilize renewable energy, such as a geothermal heat pump, solar-powered heater, or solar panels, as they may be eligible for a tax credit.
Rebates can help you save up to $3,000 on buying and installing an HVAC unit. A lot of manufacturers offer rebates on specific HVAC unit models or at certain times of the year. Sometimes utility companies also offer rebates or discounts on upgrading and installing the latest HVAC models to increase efficiency. Few HVAC companies provide discounts on pricier units such as a zone system. Visit the manufacturer’s website and search for the model you’re looking to purchase to see if they offer any rebates.
Search for coupons or discounts online; you can combine these price incentives with any other deals you can find or any discounts your installer might offer.
You can consider buying an HVAC system during the off-season as the company may offer incentives to new customers, especially when they want to phase out unused inventory. You can make price comparisons online to find the right company at the right price for you.