Those of you who read our posts regularly know that we built our reputation as a U.S. Veteran-Owned business that prides ourselves on giving people straight, honest answers to their questions...and there’s no question that makes people cringe more than asking, what does a new HVAC installation cost? Oddly enough, most contractors keep their air conditioning installation cost a closely guarded secret, as if the knowledge of how much it should cost will somehow change your decision when you have to buy a new AC. What I will tell you, is that the fair price of an HVAC installation will vary greatly based on the type of heating and air conditioning system installed, as well as the options needed or desired (Ductwork included? Zoning system?). In this article, we’ll discuss the five system features that affect HVAC installation cost, fair price ranges you can expect to pay for your new system, we will then perform an example calculation of how you can calculate a fair price, and finally, what you can do to keep from getting ripped off on your new HVAC installation price.


Our unit is 16 years old and we've had it checked out recently since it seems to be running excessively. Over all the tech says it is putting out well; it's the correct size, we have no shade and we've been having extreme heat with high humidity. The info you provided is very helpful and will help us make an informed decision when the time comes. Thank you so much.
With the split system, the evaporator coil is connected to a remote condenser unit using refrigerant piping between an indoor and outdoor unit instead of ducting air directly from the outdoor unit. Indoor units with directional vents mount onto walls, suspended from ceilings, or fit into the ceiling. Other indoor units mount inside the ceiling cavity, so that short lengths of duct handle air from the indoor unit to vents or diffusers around the rooms.
Free cooling systems can have very high efficiencies, and are sometimes combined with seasonal thermal energy storage so that the cold of winter can be used for summer air conditioning. Common storage mediums are deep aquifers or a natural underground rock mass accessed via a cluster of small-diameter, heat-exchanger-equipped boreholes. Some systems with small storages are hybrids, using free cooling early in the cooling season, and later employing a heat pump to chill the circulation coming from the storage. The heat pump is added-in because the storage acts as a heat sink when the system is in cooling (as opposed to charging) mode, causing the temperature to gradually increase during the cooling season.
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.
Some of these components can be repaired or replaced by the homeowner, such as filters, fuses, and clogged up drain lines. Coils, compressors and the other components are best left to a professional. In some cases, you may have a system that is so old that parts are no longer available or else they aren't up to code. In this case you will have to consider replacing the entire system.
Without proper ventilation, carbon monoxide can be lethal at concentrations of 1000 ppm (0.1%). However, at several hundred ppm, carbon monoxide exposure induces headaches, fatigue, nausea, and vomiting. Carbon monoxide binds with hemoglobin in the blood, forming carboxyhemoglobin, reducing the blood's ability to transport oxygen. The primary health concerns associated with carbon monoxide exposure are its cardiovascular and neurobehavioral effects. Carbon monoxide can cause atherosclerosis (the hardening of arteries) and can also trigger heart attacks. Neurologically, carbon monoxide exposure reduces hand to eye coordination, vigilance, and continuous performance. It can also affect time discrimination.[15]

An important component of natural ventilation is air change rate or air changes per hour: the hourly rate of ventilation divided by the volume of the space. For example, six air changes per hour means an amount of new air, equal to the volume of the space, is added every ten minutes. For human comfort, a minimum of four air changes per hour is typical, though warehouses might have only two. Too high of an air change rate may be uncomfortable, akin to a wind tunnel which have thousands of changes per hour. The highest air change rates are for crowded spaces, bars, night clubs, commercial kitchens at around 30 to 50 air changes per hour.[17]
Wiring up the thermostat is usually pretty straightforward if an old one is being replaced. If a thermostat is being put in where one had never been before, that could involve running new wiring. The placement of the thermostat is also important so that its sensors can get an accurate reading of the temperature. A thermostat that is blocked by a bookcase or other large furniture will not get a good reading and will not perform efficiently.

Clean air delivery rate is the amount of clean air an air cleaner provides to a room or space. When determining CADR, the amount of airflow in a space is taken into account. For example, an air cleaner with a flow rate of 100 cfm (cubic feet per minute) and an efficiency of 50% has a CADR of 50 cfm. Along with CADR, filtration performance is very important when it comes to the air in our indoor environment. Filter performance depends on the size of the particle or fiber, the filter packing density and depth and also the air flow rate.[30]
Be careful with HVAC change-outs.  Change-outs are only about 15-20% of the HVAC installation industry. Decrease HVAC installation cost by investing in new ductwork now if needed. Your ducts wear out too, and make sure that your ducts are in fantastic shape if you do this. Many contractors push this because it’s easy and cheap for them, with good pay-off. Do your research and replace them if you need to in order to avoid doing it later, as well as avoid potential health hazards from using old, broken ductwork.
Important Tip: Don’t just pay attention to the high-end of the price range! – which is what I know you are all looking at, but also look at the low range. If a contractor is cheaper than this, ask “why?” Usually it is because they don’t have liability insurance, workman’s compensation insurance, are unlicensed, all of the above, or worst yet, they don’t use HVAC technicians. You are spending a lot of money.  Make sure that they are licensed (In California, check here at CSLB License Checker) and insured.
PickHVAC Tips: Don’t be sold on systems with features you don’t want or need. Called “upselling,” it is rampant in the HVAC industry. Some features are nice – if you want them. If your single-stage furnace was loud and pushed out cold air at the start of the cycle, then a two-stage model will improve those issues. If you didn’t notice them, the upgrade will be a waste of money. That’s just one common example.
An air conditioning system's SEER is especially important if you live in a climate that changes temperature dramatically. The SEER is determined by the cooling output during the winter divided by its electric input during the winter. The higher the rating, the more efficient it will be. In January of 2006, the U.S. put standards in place for cooling units which are still in effect today. They must have a minimum SEER of 13. So, if you live in a home with a system installed before the new standards went into effect, consider having it replaced. SEER 13 units increase home efficiency by 30 percent.

Alberto said they were busy but could either install on the upcoming Saturday.  We were going to be out of town and said unfortunately that day did not work.  He then proposed the upcoming Tuesday as a possible solution, but just had to confirm with another appointment.  I said great.  I will review the estimate and call your office to confirm I want to move forward with the install.
I call to follow up at the end of the next day and she said that she has not been able to get in touch with the owner.  By this time, I am starting to get frustrated because I am starting to get the run around.  I question her if I am even on the schedule or if they attempted to schedule a crane.  She says they are extremely busy and that she does not know.  So I say, basically I have waited over 2 weeks and you have not put me on the schedule and I am at the end of the install line.  No answer.  I tell her to talk to her boss and find out what is happening, and I will think about what direction I want to move in at this point.  
We installed a TRANE XL18 HVAC with a TRANE HV80 furnace 16 years ago and it still works great in Tucson, AZ.  We inquired into a replacement for the future since the R-22 refrigerant will be off market at the end of this year.  Our maintenance folks want to sell me a new system anyway (even though the TRANE works great).  We are considering the BOSCH Inverter heat pump as a lower cost option down the road.  Watch out for the tricky salesmen trying to sell beer at champagne prices though. Get estimates on whether you need to replace your current system and how much it could cost.  And if they are factory certified.
Asbestos removal tip.  Don’t trust any HVAC installation company that says that they will remove asbestos for you. They will do either one of two things: remove it and do a horrible job because they don’t know how (an illegal act in California, finable by up to $250,000), or they will say they did and never actually do it, which is dangerous to your health. Any HVAC contractor worth their weight will know not to touch it. Call an asbestos abatement company – it should cost around $500-$1,000, and your HVAC installation company will come in right after them and do the installation to decrease cost and inconvenience.
AC air handler squealing or grinding noises. Though most air handlers have direct-drive motors, some older units may be belt-driven. Squealing sounds from a belt-drive air handler generally occur when the belt that connects the motor to the blower slips. In most cases, the belt is improperly aligned or worn and needs replacement. Follow the instructions above under Air Conditioner Not Blowing Air and refer to your owner’s manual.
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