Homeowners require relief from the sweltering heat in the summer months just as much as they need heat to stay warm in the winter. Yet, when the heating, ventilation and air conditioning (HVAC) system breaks down, they tend to get sticker shock from the expense.
The Cost of HVAC installation varies depending on numerous factors. A larger home will need a system capable of meeting its heating and cooling requirements, while the unit type and its energy-efficiency ratings may also drive up the price.
Of course, living without a working HVAC isn’t an option. Therefore, homeowners should do their homework before making such a substantial investment.
What Is the Average Cost of HVAC Installation?
According to Angi, the average cost of HVAC installation for a replacement unit is about $7,500, with a typical range between $5,000 and $12,500. However, homeowners may pay upwards of $22,000 for additional features.
The cost breakdown for HVAC systems includes permitting, labor fees and the unit itself. Sometimes, homeowners might also need new ductwork, fresh insulation and a new thermostat. The price tag also hinges on the unit type, such as central heating and cooling, a window AC, a whole-house fan, ductless mini-split AC or a heat pump. Of course, central air conditioning is best for preventing mold and moisture in warmer climates.
6 Factors Impacting the Cost of a New HVAC
Homeowners requiring an HVAC upgrade should understand the factors influencing installation fees. For starters, getting a new unit is much different from having repairs done, as is a partial versus total replacement. Here are six things homeowners must account for when considering the cost of HVAC installation.
1. Square Footage
Cooling or warming a house will be difficult when a unit is too small for the square footage. An undersized and overworked system will also drive up energy outlay. Of course, it’s not so much about having a larger air conditioner as it is about its cooling capacity.
AC units use British thermal units (BTUs) or tons, of which one ton of air equals 12,000 BTUs. This indicates their ability to remove a certain amount of heat within an hour. Usually, an AC demands 20 BTUs per square foot of a home for optimal indoor comfort.
The best way to determine the correct HVAC system size is to measure the length and width of each room and multiply them to get the square footage. Then, one must add the square footage of each room and multiply the sum by 20 to determine how many BTUs are necessary to cool the house.
2. Age of System
Homeowners can only make repairs on an AC unit so many times before realizing it’s more cost-effective to replace it. HVAC systems show signs of aging after 10 years, although a high-quality unit could last much longer with proper maintenance.
Of course, if a unit has yet to reach the end of its life, replacing individual parts is much less expensive than purchasing an entirely new model. Targeted upgrades also allow homeowners to improve specific aspects of their indoor comfort and air quality.
3. Ductwork Modifications
An HVAC system must be compatible with the duct size to carry heat and cool air throughout the home adequately. According to Architectural Digest, ductwork is a costly addition to HVAC installation, ranging from $1,370 to $5,970, with an average of $3,670.
Ultimately, the cost depends on the type of duct material, such as fiberglass, aluminum, or galvanized steel. Although galvanized steel is the most expensive — about $4 to $12 per linear foot — it lasts over 50 years and has much more enhanced airflow than other duct materials. Customizations, home size, location and run size also increase the price.
Although replacing the ductwork in addition to a new HVAC system is not a cost most homeowners want, it may be necessary for health reasons. Older ducts are susceptible to mold growth and dust, causing poor indoor air quality and potential respiratory problems for household members.
4. Energy Efficiency
With rising utility bills and a greater awareness of climate change, many people are retrofitting their houses to be more energy-efficient. Data from Statista shows that as of 2023, about 63 million households have upgraded to a smart home, which often includes smart thermostats.
Smart thermostats use algorithms and machine learning to learn homeowners’ heating and cooling preferences and adjust indoor temperatures accordingly. These systems can be remotely controlled through smartphones, allowing individuals to turn the AC up or down when they’re on the way home.
This new smart home technology raises the cost of HVAC installation, particularly since smart thermostats are more expensive than standard programmable thermostats. However, homeowners reap the rewards of energy savings on their monthly heating and cooling bills.
5. System Location
It’s essential for people to know where their HVAC system is located — garage, closet, basement or attic — to estimate the costs. Attic AC systems will always be pricier because they are much more challenging to navigate.
Modernize reports that an attic AC unit will cost $5,000 to $20,000, yet space savings and optimal comfort make this solution valuable. A contractor can help homeowners determine the best course of action and provide a more accurate quote for an attic installation.
6. Zoning Controls
Some households may choose to set up zoning controls, which could also impact the cost of HVAC installation. For instance, homeowners often pay an average of $1,700 to $2,800 to add a second zone to their existing HVAC according to Home Guide. Each zone added after is usually $350 to $500.
Ultimately, the price depends on whether thermostat zoning is added to an existing or new unit, the type of thermostat, whether the system needs bypass ducts to relieve air pressure, and whether thermostats and sensors operate on a wireless network.
Setting up HVAC zones could result in significant energy savings in homes, though. According to one study, a zoned system could reduce energy consumption by 21% to 42% compared to non-zoned systems.
Conclusion
Although HVAC installation costs are high, the work is crucial for maintaining indoor air quality and comfort. More often than not, homeowners will say upgrading their systems was the right choice, helping improve their home’s energy efficiency and allowing them to save on heating and cooling bills.
When faced with repairing yet another broken part or installing a newer model, the latter is the obvious choice for long-term benefits. However, staying informed about cost factors allows homeowners to make more informed decisions regarding their HVAC investments.
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