That’s a question I get almost every day in every different type of home and scenario imaginable. After the better part of a decade in this industry I can tell you with certainty that there’s not a “one size fit’s all” answer to this question but if you read this entire article, it is my hope that you will walk away with three main things:
- You will better understand the various factors that impact the cost of an HVAC system.
- You will be well informed with what questions you should ask your contractor and what you need to know to make an informed decision.
- You will have a deeper understanding of why different companies price their services so differently and why the lowest bidder may or may not be the best option for you.
The two main categories of cost considerations:
- Initial purchase price
- Lifetime ownership and operating costs
1. Initial Purchase Price
The initial purchase price is the one people tend to focus the most on, it’s important, but it’s far more important that you understand what you’re getting for your money rather than just looking at the sticker price to make your decision. Here are some factors to consider:
What is the warranty on the system?
A 10-year parts warranty has become standard for most equipment; there are some exceptions to this but generally your system will have the parts covered under warranty for 10 years by the manufacturer. It’s very important to note that a parts warranty does not cover labor in most cases. You need to pay close attention to this because in HVAC (like most home other home service business) the parts are rarely the most expensive thing involved in a system repair so if your HVAC company isn’t giving you a significant labor warranty you may still find yourself spending a significant amount of money on your system down the line.
What are the additional accessories or components being added onto or replaced along with the system?
For example, are electrical switches and disconnect points being replaced? Is your new system going to have an emergency drain pan and safety switch installed under it to prevent flooding in case of a failure? Is any ductwork or piping being modified or replaced? If your system uses natural gas, propane, or oil will any of the piping, lines, or shutoffs for that be replaced? Will the air-filtration portion of the system be replaced or upgraded in any way? Will the new system have any vibration dampening? Will there be any electrical surge protection? Is the new condenser outside going to get a new properly leveled pad installed under it? Are your refrigerant lines going to be replaced? If those lines aren’t being replaced, will they be flushed (cleaned) and pressure tested to ensure they are ready for the new equipment? Did the company do a proper load calculation to ensure that the equipment is sized properly for best operation, maximum comfort and longest life?
How efficient is the new equipment?
More efficient systems are typically more expensive so be sure you’re comparing similar systems when comparing prices. While efficiency costs more up front it can save you more over time.
2. Lifetime Ownership and Operating Costs
What is the expected lifespan of the equipment?
The longer the system lasts the better investment it is for example a system that costs $10,000 and lasts 10 years has a yearly ownership cost of $1,000/year but a system that costs $15,000 and lasts 20 years has a yearly ownership cost of $750/year so even though the $15,000 system costs more upfront over a 20 year period it’s ownership cost is $5,000 less than the “cheaper system” even if you don’t consider efficiency.
How much does the system cost to run i.e. System Efficiency?
System efficiency falls under operating cost rather than ownership cost. This is the money that you spend every month to keep your home heated or cooled and should be a serious consideration when you’re deciding on a new HVAC system because if a system that costs more upfront saves you money over time, then it eventually offsets the initially higher purchase price and starts to save you money.
How much does it cost yearly to maintain the system?
Whether we’re talking about an AC system, a gas furnace, an oil boiler, a heat pump, a ductless mini split or anything else your HVAC system needs maintenance. When deciding on a new piece of equipment consult with your HVAC professional to guide you in how often it needs preventative service. How much that service costs, and how often filters need to be changed since each of these vary by system and giving your system the service it needs is key to getting the most life and efficiency from it.
How the type of system you have affects costs
There are many types of HVAC equipment but the ones we will focus on here are the ones our company services and installs. It’s important to note that in many homes the furnace and AC are part of the same system. In these circumstances it’s often possible to replace one without the other but not always. Depending on the age of the equipment it may make sense to replace them both together since most companies offer a discount for doing them together however if the equipment is mismatched in age or your budget is restricted sometimes replace just a furnace or just an ac coil and condenser makes more sense.
Heating and cooling costs vary widely depending on the type of system.
- Forced Air (Natural Gas, Propane, or Heat Pump): Most common in newer homes. If you have both heat and AC, this is likely your setup.
- Oil Systems (Boilers or Furnaces): Higher upfront cost because equipment must handle hotter temps. Oil is also more expensive to operate than natural gas, though propane and oil are similar in cost. Boilers generally cost more to install than furnaces but last longer.
- Mini Splits (Ductless Heat Pumps): Can be cheaper or more expensive than ducted systems depending on your home. Ideal for homes without ductwork. They offer room-by-room temperature control but usually have higher maintenance costs and fewer air-quality options
Please Note: these prices will change over time, while they accurately reflect the cost of quality work from a quality company at the time this article is written that cost may differ in the future. For accurate/up to date pricing please call us or use our free installation pricing calculator.
- Forced air ducted Air conditioners ($6,000 to $19,000)
Price varies based on system size, efficiency, and whether it’s a stand-alone system or paired with a furnace - Forced air ducted heat pumps ($8,000 to $25,000)
Price varies based on efficiency and whether it’s a stand-alone system or paired with a furnace - Mini splits aka Ductless heat pumps ($4,500 to $40,000+)
Pricing for mini splits varies greatly based on the number of zones utilized) - Natural gas and propane forced air furnaces ($5,500-$12,000)
Price varies based on system size and efficiency - Oil forced air furnaces ($8000-$14,000)
Price varies based on system size, configuration, and efficiency - Natural gas and propane boilers ($7,000-$25,000)
Price varies based on system size, efficiency and number of zones - Oil boilers ($10,000-$30,000)
Price varies based on system size, efficiency and number of zones
Things your contractor may or may not be doing that cost more upfront but save you money and stress in the long run:
- Proper installation practices
- Heating cooling load calculation
- Air and water sealing and filtration
- Proper testing and calibration of equipment
- Proper safeties on equipment to prevent further damage in the case of failure
Something that can be hard to judge as a homeowner is the installation practices of your HVAC contractor. Things like failing to use nitrogen while brazing, not setting up airflow properly, not setting up system programming for maximum efficiency, improperly connecting or aligning ductwork, not setting up drains or exhaust vents with proper pitch…. There are many more examples but these are just some of the things that can go wrong with an HVAC installation the scary part is that they might not cause an issue for you right away it could be years before you see the results of a contractor skipping the proper installation steps and by the time you realize it may be too late. Without being a professional most of these things are hard to gauge but here are some things to make sure your contractor is doing to ensure you’re getting a quality system installation.
- Ask about a load calculation. A system that is too small will not keep your house comfortable and a system that is oversized will cause issues with temperature balancing throughout the house as well as humidity issues. Additionally oversized equipment will have a decreased lifespan because of constantly turning on and off due to being overpowered (imagine starting a car and holding the gas pedal to the floor for one minute then shutting it off and repeating that cycle every 5 minutes, the car wouldn’t last very long and that’s what short-cycling cause by oversizing does to your HVAC equipment)
- See what warranty is being offered, while it’s not a perfect indicator on its own a good warranty is a sign that the company know what they’re doing and has faith in their own work. After all, if they’re constantly fixing systems under warranty for free then they aren’t making money and won’t stay in business.
- See what additional safeties and surrounding items are being installed with your equipment. A company that’s thinking towards both your future and theirs will want to give you peace of mind and minimize the potential for damage if something does ever go wrong
- Ask about new Install testing procedures, the best companies document the results of these test to ensure quality across multiple jobs and areas.
- Check their reviews! A company that’s doing poor work and not taking care of their customers will gain a bad reputation quickly
In summary at New Life, we know this is a big decision with a lot of variables but hopefully reading through this helps you to have a better idea of what to expect and what factors to consider to be sure that you’re happy with your investment. If you’d like to get specific pricing for your home, please check out our free online pricing calculator or give us a call so we can walk you through the process.