At first, your HVAC contractor’s AC replacement cost quote may seem baffling. The average cost to replace an air conditioner is close to $6,000. According to Angi, you can expect to spend between $3,910 and $7,984, while a high-end system can cost as much as $12,000. What is the rationale for such high prices? Your local HVAC contractor may consider the following when it’s time for AC replacement.
- Size of Your Home and the New System
- Number of Zones
- Brand of Air Conditioner
- The AC Unit’s Energy Efficiency Rating
- Air Conditioner Technology
- Existing Equipment Removal
- Labor Fees
- Permits
- Extended Warranty
- Home Infrastructure Improvements
- Time of Year
1. Size of Your Home and the New System
Your home’s square footage is one of the biggest factors impacting the cost of AC replacement. The larger your house, the bigger an air conditioner you’ll need, and AC costs increase proportionately to a unit’s size. A 1-ton unit is equal to 12,000 British Thermal Units (BTUs). The total BTUs of an AC reveal how much energy it uses to remove heat from your home in an hour.
A 1-ton AC can cool a space of 500 to 600 square feet. However, other variables must also be considered, such as your climate zone, higher ceilings, or rooms that are naturally cooler, such as basements. But with square footage as the main consideration, AC sizing looks as follows:
| Home Size | AC Tonnage | BTUs |
| 1,000 to 1,500 Square Feet | 2 Tons | 21,000 to 24,000 BTUs |
| 1,500 to 2,000 Square Feet | 2.5 Tons | 30,000 BTUs |
| 2,000 to 2,500 Square Feet | 3 Tons | 34,000 BTUs |
| 2,500 to 2,700 Square Feet | 4 Tons | 48,000 BTUs |
| 2,700 to 3,300 Square Feet | 5 Tons | 60,000 BTUs |
With numerous variables to consider, it’s difficult to determine an exact price per each specific AC size. Generally, smaller, lower-capacity units are on the low end of the price scale and larger units are on the high end. Similarly sized systems can vary in cost based on many factors. Nonetheless, a 2-ton system won’t likely cost less than $2,500 and a 5-ton unit won’t likely cost less than $4,000 (according to HomeGuide).
When sizing an AC unit, a contractor will perform a Manual J load calculation. It considers all the factors that affect energy efficiency and allows a technician to choose the right-sized unit and estimate the cost.
2. Number of Zones
Larger homes, especially those with two or more floors, can have multiple cooling zones. How zones are set up depends on the type of AC system. If you’re installing a traditional split central system, multiple AC units may be needed. Or, you can choose a ductless mini-split system; in this case, the AC replacement cost will depend on the number of zones, the system’s size, and the efficiency rating. The more indoor air handlers you install, the higher the cost.
3. Brand of Air Conditioner
Some brands are known for higher-quality, longer-lasting equipment, their reputation, and their level of service. Working with them often means paying more. However, the cost of a specific AC brand can also depend on how well its equipment performs in your region or climate zone. Some of the top brands include Lennox, American Standard, Amana, Coleman, Trane, and Carrier. Your local HVAC contractor can help you choose from top-performing brands based on various AC benefits and features.
4. The AC Unit’s Energy Efficiency Rating
An AC’s seasonal energy efficiency ratio (SEER) measures its total cooling output for the season divided by the electricity it uses. The higher the number, the higher the unit’s efficiency. As of 2023, California building codes require all newly installed air conditioning units to be rated 15 SEER or higher. High-efficiency models can be rated up to 27 SEER. Despite being costlier to install, high-SEER air conditioners can lower your energy bills, offsetting some of the higher initial costs.
5. Air Conditioner Technology
As we’ve touched on, there are different types of air conditioning systems. The one you choose can affect installation costs. Common ACs that can vary significantly in cost to install include:
- Single-Stage ACs: These are the most basic, so they cost the least. However, they always run at full power when on, so use more energy.
- Two-Stage ACs: A two-stage unit can run at low power or full power. Cooling power can be increased on hot, humid days or when your home’s temperature is higher than usual.
- Variable-Speed ACs: The blower can run at incremental speeds and adjust precisely to the level of demand, which saves the most on energy costs.
6. Existing Equipment Removal
The cost of AC replacement must include the removal of your existing unit. Removing AC components requires specialized tools and expertise. Your HVAC contractor may include equipment removal in the AC replacement cost or add it as an extra line item on your bill. If they don’t provide this service, you must hire a separate company to help. It can cost a couple hundred dollars plus the cost of Freon removal.
7. Labor Fees
Labor fees vary depending on the AC company. The more experienced the contractor is, the higher the labor rate is likely to be. The trade-off is avoiding issues with unit sizing and improper installation. Labor can add up to $2,500 to the AC replacement cost, depending on the system’s size and complexity and the installation timeframe.
8. Permits
Acquiring a permit involves meeting local building codes and having your new AC system inspected. Therefore, you must pay permitting and inspection fees. Failing to obtain a permit can result in costly fines and other penalties, plus the cost of rework and potentially reduced property value. A reputable HVAC company may include the cost of a permit in the total price estimate.
9. Extended Warranty
Most manufacturers include a five- to 10-year warranty with central AC systems. However, your local dealer may provide extended warranty options. An extended warranty may cost $100 to $500 but can provide longer coverage and include more services than a standard agreement.
10. Home Infrastructure Improvements
The cost of AC replacement isn’t limited to the price of new equipment. Various improvements may be required to ensure your new AC functions properly and efficiently. You may have to pay to update, improve, or replace the following:
- Ductwork: New ductwork can cost $3,000 to $7,500 (for 300 linear feet). The amount of ductwork needed depends on your AC system and the size of your home. Ductwork repairs can vary considerably in cost based on accessibility, system age, and the type of damage.
- Plumbing: A drain line removes condensation from a central AC system. It may lead outside or connect to your plumbing. Usually, HVAC contractors include it in the AC replacement cost.
- Electrical: If you don’t have a dedicated circuit for your AC, a licensed electrician must install one. This is worth the cost. An AC unit must have a 240-volt connection and 15 to 60 amps of power to safely operate.
- Insulation: Updating, adding to, or replacing the insulation in your home can help reduce energy costs. However, accessing the interior of walls and ceilings and the attic comes at a cost that can be recouped with improved efficiency.
- Air Sealing: Gaps in the exterior envelope of your home can reduce efficiency. By sealing air leaks around doors, windows, and piping/wiring entry points, you can reduce the number of BTUs per square foot needed, and therefore costs.
11. Time of Year
The best time to schedule AC replacement is in the spring or fall. HVAC contractors are busier in the summer and winter months, and higher demand justifies charging higher prices. During less busy times, sales and other incentives reduce the AC replacement cost. Making your purchase when retailers are clearing the previous year’s models can also help save.
Call Monarch Home Services for an AC Replacement Cost Quote
Our EPA- and NATE-certified HVAC professionals provide high-quality AC replacement in the San Joaquin Valley. If your air conditioner is aging, becoming less efficient, or needs frequent repairs, let us determine if replacing it makes sense. We ensure you get the most for your money. Load calculations, airflow analyses, and ductwork design are all included in our process. We also offer affordable financing and maintenance agreements. Call (661) 215-6428 for more details or to request a free estimate.