An AC contactor is a $25 mechanical relay that uses low-voltage power from the thermostat to switch 220-volt high-amperage current to the compressor and condenser fan. AC contactors can wear out and are at the top of the list of common air conditioning service failures. Even if your AC contactor is working, it pays to replace it every five years or so. Unscrew the old AC contactor before removing the wires. Then move the wires to the new unit (Photo 6).
If you’re anything like most of our readers, you’ve spent hours online researching HVAC information in preparation for replacing your old heater or air conditioner. I’m the same way; it’s a big investment! You may want to consider saving yourself some time and money by getting an HVAC-Facts Report from this online HVAC installation cost calculator.  Take a look:
They work less jobs, thus increasing profits – think about it…if they got only half of the jobs, then they only pay half of the money required to pay employees, expenses, etc., but still have the same amount of net profit. In fact, if you do the math, they actually make more profit that their competitors do…twice as much, once you factor in their savings form only doing half of the jobs at the same amount of profit (Total Revenue – (half the normal expenses) = twice the profit). In other words, they save money by doing half of the jobs as others, for the same profit, thus increasing their overall profits.
Energy efficiency can be improved even more in central heating systems by introducing zoned heating. This allows a more granular application of heat, similar to non-central heating systems. Zones are controlled by multiple thermostats. In water heating systems the thermostats control zone valves, and in forced air systems they control zone dampers inside the vents which selectively block the flow of air. In this case, the control system is very critical to maintaining a proper temperature.
You might also want to check your home for thermal insulation if you live in extreme heat or freezing temperatures. Insulation keeps the heat and cool air in your home, which can lead to a lower electric bill. If the heated or cool air leaks out, your system turns on more often. There are various types of insulation that you can install in your home and a home energy auditor can point out the best places for it in your house.
The HVAC installation costs below are based on residential installations only, and are priced for a single unit. Two units should be about twice the price. “Tim, shouldn’t there be a discount?” If people start giving you discounts, they are probably charging you too much to begin with.  That’s our philosophy anyway. Twice the parts and time should be twice the price from a fair contractor. The prices listed include component parts (with warranty), labor, and all materials for a complete HVAC installation.

Though this installation is not always complicated, it's best to work with an air conditioning contractor to ensure it's done correctly. Permits are usually required for this type of work and can be obtained by a state-licensed contractor. You should not attempt to install central air conditioning on your own since you need a license to handle the refrigerant chemicals (Freon) involved.


Many central air conditioning systems use the furnace blower to distribute cool air through the home. If you do not have a central heating system installed, it is cost-effective to install a heating and air conditioning system at the same time. If you already have central heat, you can use the existing fans and duct system for the central air system.
Unfortunately, manufacturers and contractors don’t publish this information…it’s a secret. Why? Who knows…but we have access to a full contractor pricing database of 1,000’s of different units in our online HVAC installation cost calculator, so let’s choose one for our example calculation. We’ll go with Carrier equipment, since our readers always bother us about them (despite us telling them that they are overpriced):
AC units and thermostats have built-in delay features when they're shut down and then repowered. The delay can be as long as 10 minutes. And, if you've subscribed to an energy-saving device from your local power utility, the unit can take even longer to reset. If you've installed the parts shown and reinstalled the disconnect block, repowered the circuit breaker, turned on the switch at the furnace, moved the thermostat to AC mode and lowered the temperature below the indoor temperature, and the unit doesn't fire up after 30 minutes, it's time to call a pro.
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At the state level the rebates are still substantial. For example, switching to a zoned system can get you a $100 rebate from various A/C companies, and state rebates are also included. In Pennsylvania a high-efficiency air conditioner alone can get you up to $300, and a high-efficiency complete HVAC system can see up to $1000. Maryland's incentives get up to $1,250, with a $100 rebate on a tune up of an existing system.
So, whether you need an AC repair or you’re in search of a new heating and air conditioning system—or you need a new water heater now–you can count on our team in North America. We’re experts in AC and plumbing repair, and offering top-notch AC and plumbing service is what we do best. Call Service Experts 24/7/365 at 866-397-3787 or request an appointment online today, and don’t forget to check out our coupons page for savings on your AC or plumbing repair service.
Installation: The old furnace is disconnected from the ductwork plenum, exhaust flue, gas and electrical hookups. In most cases, a new plenum must be made onsite or ordered from a local sheet metal fabricator. A new vent might be required too. The furnace is set and reconnected. Adjustments to the blower fan speed and burner are made to optimize furnace performance for your home and climate.
So, the total price to a contractor for this project is $7,195.77 (Carrier is expensive), which we’ll use to calculate a fair HVAC installation cost. As I said, we typically use 40% in the industry to cover our own personal profit, as well as our insurance and other expenses. Let’s take a look at page three of a Final Report from our own online HVAC calculator, the HVAC Design & Consultation Program.
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