How Much Does HVAC Installation Cost?
Key takeaways:
Installed prices can range from $10,000 to $40,000. Learn about 6 big variables behind the wide range of prices and what goes into your final heating and air conditioning system cost.
By Anne Fonda
Variable #1: The HVAC system components
Similar to the difference in new car prices, the make and models you choose, efficiency, and extras you might select will impact the cost of HVAC installation.
Efficiency ratings
The more efficient an AC unit, heat pump, or gas furnace is, the higher the initial cost. But keep in mind that higher SEER2, HSPF2, and AFUE ratings can result in long-term savings on your energy bills. Your Trane dealer can help you run the numbers. Learn more about HVAC efficiency metrics.
It’s similar to how vehicles with a higher fuel efficiency typically cost more upfront than their less efficient counterparts, but the fuel-efficient vehicle will save you at the gas pump. A high-efficiency central air conditioner with a higher SEER2 rating will cost more upfront than a less efficient model, but will save you money on future energy bills.
Variable speed, multi-speed, two-stage, single-stage
More compressor speeds and fan speeds make an HVAC system more efficient at maintaining a precise temperature and comfort level. Single-stage systems are the base level and are either running at 100% capacity or they’re off. Two-stage systems have a high and low speed for better comfort.
Multi-speed systems are the next level up and offer a bridge between two-stage systems and premium variable-speed systems. The cost of an AC unit or heat pump increases as you move from single-stage to variable-speed.
Compare this to how a new vehicle with a V6 engine costs more than the same make with a V4 engine, and an electric vehicle or hybrid vehicle may cost more than a vehicle with a standard internal combustion engine.
Ductwork
If you need to upgrade or replace your ductwork, that will increase the cost of HVAC installation.
Added features
If you decide to include a whole-house air cleaner or whole-house humidifier, for example, that will add to your final cost.
“Adding features to your HVAC system depends on your price range and desired comfort level. Choosing a variable speed system can not only reduce lifetime costs by operating more efficiently, but also provide superior comfort through enhanced control of your home's environment—including features like humidity management and more controlled adjustments of compressor and fan speeds.”
-Kimberly Sexton, Senior Systems Engineer
Variable #2: The HVAC brand
Back to our car shopping comparison. There are budget-friendly options, middle-of-the-road pricing, and luxury vehicles. HVAC manufacturers offer budget-friendly options, mid-range options, and premium options. Trane offers Choice, Priority, and Premier systems.
Trane heating and cooling systems will likely cost more than some of the budget brands. That’s because we offer innovative technology to provide homeowners with energy-efficient home comfort systems.
We use superior materials, and our products undergo 5 years of testing in just a few months to ensure their reliability. We also offer industry-leading warranty coverage. Homeowners know that it’s hard to stop a Trane. It’s part of why we’ve been named America’s Most Trusted® HVAC brand for 11 years in a row.
Variable #3: System size/size of your home
The heating and cooling capacity is directly related to the size of your home as well as other factors like insulation, number of windows, and more. While a 2.5-ton AC unit and compatible furnace might be suitable for a smaller home, a larger home might require a 5-ton AC unit or 5-ton heat pump.
Larger capacity units will cost more than smaller capacity units. An HVAC company should perform a load calculation before telling you what size system your home requires.
“Beware of dealers who don’t perform load calculations and rely either on very basic rules of thumb or just want to replace your system with whatever you currently have. Those are usually signs that you should find a better dealer.”
-Mark Woodruff, Senior Product Manager, Ducted Outdoor
Variable #4: Where you live
While equipment costs may be relatively stable across the country, where you live can make a difference in your final HVAC installation cost. Sales tax varies from state to state and city to city.
In addition, if you live in a competitive market with a lot of HVAC companies, you may be able to negotiate a lower price with the company that offered the highest quote. Conversely, if you live in a rural area with few HVAC companies to choose from, you may need to go with the best bid, even if it seems high.
Lastly, local labor costs can impact your overall cost. HVAC companies need to pay a good wage to keep qualified, trained HVAC technicians on staff.
Variable #5: Financial incentives
If you’re purchasing an energy-efficient heat pump system, you could be eligible for federal heat pump rebates administered by the states. Certain income limits may apply.
HVAC manufacturers sometimes offer rebates in the spring and fall. Be sure to ask. In addition, some utility companies will offer rebates on energy-efficient HVAC units.
Variable #6: How you pay
Most people don’t pay for a new HVAC installation in cash but use some sort of HVAC financing. If you take out a loan or use a regular credit card, you may end up paying more than the initial price because you have a high interest rate.
You may be able to save on interest payments by opting for a 0% HVAC financing offer through your local Trane dealer. Learn more about all of your HVAC financing options and the pros and cons of each.
Work with HVAC installation pros
If you’re in the market for a new HVAC system, energy efficiency and reliability matter. You’re making a long-term investment in your home and your comfort. A more efficient system will cost more upfront, but can save you money on your monthly utility bills for years to come.
Contact your local Trane dealer to explore your options.
Anne Fonda, Content Writer
A Content Writer with Trane Technologies, Anne Fonda researches topics and writes for Trane® and associated residential HVAC brands. She works in collaboration with Trane Technologies subject matter experts, offering easy-to-understand, informative content on complex topics. Her goal is to help consumers make informed decisions on the products and services they need.
She has written for HVAC and other service provider websites for over 16 years. Before transitioning to web content writing, Anne had a 14-year stint as an award-winning journalist. She graduated cum laude from the University of Missouri-Columbia School of Journalism.
When she’s not working, Anne enjoys playing word games, reading, gardening, spending time with family, and visiting gardens and museums.
Expert review by Kimberly Sexton, Senior Systems Engineer
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