Is your AC system at the end of its life, but you’re worried about how much it’s going to cost you to replace it? The unfortunate truth is that AC installations are never cheap. At the same time, replacing your AC is a great investment in your home and your family’s comfort. In some cases, a new AC system could end up paying for itself over time by saving you quite a bit of money on your electricity bills. In this article, we’ll examine the typical cost of AC installation and outline the various factors that can influence the cost.
Average Price Range for New AC Installation
The nationwide average cost to install a new AC system is around $6,000. However, some homeowners may only have to pay around $3,500-$4,000, while others can easily end up paying well over $10,000-$15,000. It all comes down to factors such as the size of the house, climate and location, the brand and model of the AC system, energy efficiency, which HVAC company you hire, and how complex the installation is. Whether you just need to replace the outdoor unit or the entire system also makes a big difference, as having to install a new evaporator coil, blower, and refrigerant line set will add to the total cost.
AC Sizing
The size of the house and where in the country it’s located are two of the biggest factors that determine the cost of an AC installation. That’s because square footage and climate are the main factors in terms of cooling requirements and how large the AC condenser unit needs to be to meet these requirements effectively. The cooling capacity of central ACs is measured in AC tonnage, with residential units ranging from 1 to 5 tons. Every AC ton is equivalent to 12,000 BTUs of cooling.
The general rule of thumb is that you need a minimum of 20-25 BTUs of cooling per square foot, but this rule isn’t always applicable to all homes. In North Carolina, you can sometimes need as much as 35-45 BTUs per square foot for the AC system to work effectively enough. That means a 1,500-square-foot house could need a 4.5- or 5-ton AC.
For a 3-ton AC unit, you’ll typically have to pay at least $2,000-$3,000 for the unit itself, not including labor or other materials. For a 5-ton unit, you’re usually looking at spending a minimum of $4,000-$5,000. You can also typically expect to pay at least an additional $2,000-$3,000 in labor costs, although this can vary quite a bit from one HVAC company to the next.
Installation Complexity
Experienced HVAC technicians can usually perform a full AC install or replacement in a single day. However, some installations are more complex and take more time, resulting in higher labor costs. For instance, if your ductwork needs to be repaired or replaced, this work alone can take anywhere from one to three additional days. In this case, you’ll also have to factor in the cost of the additional materials. For a full ductwork replacement, you’re usually looking at spending anywhere from $1,500 to $10,000, depending on the size of your home.
The location of the indoor and outdoor AC units can be another factor in terms of how easy or complex the job is. Installations typically go a bit more quickly if the indoor unit is in the basement or on the ground floor, and they can take more time if the indoor unit is in the attic. Installing a roof-mounted unit is also more complex than installing a unit that sits on the ground. In this case, the HVAC company will need to bring in equipment to lift the unit onto the roof.
Brand of AC
Not all AC brands or manufacturers are even remotely equal. You can often find less expensive AC units at big-box home improvement stores, but they’re almost always from lower-quality, less reputable brands. AC units from the top-rated brands tend to be more expensive, but you also get what you pay for. That’s because units from the top brands tend to be more durable, more energy efficient, and last longer. You’ll also usually get much better warranty terms when you opt for one of the higher-rated brands.
Energy Efficiency
In North Carolina, the least efficient AC unit you can legally install is 15 SEER or 14.3 SEER2. As you might expect, more efficient ACs with higher SEER ratings always cost more. Nonetheless, it’s almost always worth paying a bit extra for a higher-efficiency unit due to how much it can save you on your electricity bills. For instance, you’d typically save around $100-$150 a year by installing a 17 SEER AC instead of a 15 SEER unit. If you factor the savings out over 10-15 years, you’ll quickly see why installing a higher SEER AC is a good investment. Installing a 17 SEER unit will also make you eligible for up to a $600 credit on your federal income taxes, helping you to save a bit on the installation.
Top-of-the-line ACs are around 28 SEER. While your electricity bills will be far lower with a unit that’s this efficient, it seldom makes sense to go this route due to how much more the installation will cost. Your energy savings will be far higher, but they are probably never enough to balance out the high installation cost.
AC Stages
The number of stages an AC has refers to its number of speed or power settings, and you have the choice between single-stage, two-stage, and variable-speed units. Two-stage and especially variable-speed units are the most expensive to install. However, they cost less to run, as they don’t have to always run at full power like single-stage units do. They typically run at full power less than 20% of the time. When a two-stage unit is running at the lower setting, it normally uses 30-40% less power than it does when running at full speed. Variable-speed units have a wide range of settings and can slow down to the point where they only use around 20-25% as much power as when on high speed.
One great thing about two-stage and variable-speed AC systems is that they stay on quite a bit longer than single-stage systems while still using less power. The longer cooling cycles are beneficial for ensuring air gets distributed evenly, and every part of the house stays sufficiently cool. Two-stage and variable-speed systems are also much better at keeping the home from being too humid.
At Dawson's Electric & Air, we’ve served Raleigh, Fuquay-Varina, and the Triangle Area since 2005, providing reliable cooling services. If you need a new AC system, our experienced team is here to assist you. We offer a range of efficient AC units from reputable brands and help you find one that fits your budget and home. You can trust us to professionally handle the installation and ensure your new system keeps your family cool all summer long.
To set up a consultation or schedule any HVAC or electrical service, contact Dawson's Electric & Air today.
