How Much Does HVAC Installation and Replacement Cost?

An expert man checks the HVAC system to inform the owner how much the installation and replacement cost.

Published September 9, 2023

It’s essential to understand the costs involved in HVAC installation and replacement. The expenses can vary depending on various factors.

So, in this article, we will explore the different types of HVAC systems. We will give an overview of their installation costs to help you make an informed decision.

Understanding HVAC Systems

HVAC stands for Heating, Ventilation, and Air Conditioning. These are essential components in maintaining a comfortable indoor environment.

HVAC systems consist of two central systems: heating and cooling. While air conditioners cool the air, furnaces provide heating. Heat pumps are versatile as they can both heat and cool the air. Some bundled HVAC systems serve both heating and cooling purposes.

Types of HVAC Systems

Split System

This is the most common type of HVAC system. It comprises an indoor unit (furnace or air handler) and an outdoor unit (air conditioner or heat pump). The two units work together to provide both heating and cooling.

Packaged Unit

Unlike the split system, all components of a packaged unit are housed in a single cabinet. This type of system is installed on the roof or beside the building. This makes it ideal for homes with limited indoor space.

Ductless Mini-Split

As the name suggests, ductless mini-split systems do not need ductwork. They consist of individual units mounted on the wall or ceiling. They provide zoned heating and cooling for specific areas of the home.

Geothermal Heat Pump

Geothermal systems use the earth’s natural heat to provide heating and cooling. They are highly energy-efficient but tend to have higher upfront costs. This is due to the installation of underground loops.

Now, let’s dive into the estimated installation costs for these HVAC systems.

HVAC Installation Costs

According to research, the installation costs for HVAC systems can vary based on several factors. Below, we provide a general price range for each type:

Split System

The installation cost for a split system HVAC ranges from $2,500 to $8,000. However, it is essential to note that extra factors can influence these costs, such as installation difficulty and any necessary modifications to the existing ductwork.

Packaged Unit

The average cost range for installing a packaged unit HVAC system is between $6,465 and $11,877. This includes the new HVAC system cost and labor. As well as any necessary adjustments to accommodate the new system.

Ductless Mini-Split

Homeowners can expect to spend between $5,000 and $9,000 for ductless mini-split systems for installation. The cost may vary depending on the number of units needed to cool and heat the desired areas within the home.

Geothermal Heat Pump

Geothermal systems have higher upfront costs. This is due to the excavation required for underground loops. The price for a geothermal HVAC system can range from $5,000 to $34,000. But, it’s worth noting that these systems provide long-term energy savings and increased efficiency.

Factors Affecting HVAC Installation Costs

The cost of HVAC installation and replacement can vary based on several factors. Let’s take a closer look at them:

Type of HVAC System

HVAC installation costs depend on the type of system you choose. Window air conditioners start at $470, and ground-source heat pumps range from $13,530 to $36,530.

Size of Your Home

The size of your home plays a crucial role in determining the size of your HVAC system. Larger homes must have bigger systems, which can be more expensive. This is due to the increased capacity required to regulate temperature.


Where you live also influences the type of HVAC system you need. Different climates have different requirements when it comes to heating and cooling. It’s essential to consider the environment to ensure optimal performance and efficiency.

Ductwork Requirements

If your home requires new ductwork or modifications to the existing system, it can increase the HVAC installation cost. Properly installed and maintained ductwork is crucial for efficient airflow and temperature control. Remember that there are code requirements for a duct system installation; while skipping these may cut the cost, we do not recommend it.

Energy Efficiency Rating

Energy-efficient HVAC systems can help reduce operating costs in the long run. Consider designs with high Seasonal Energy Efficiency Ratio (SEER) ratings for air conditioning. Also, consider high Annual Fuel Utilization Efficiency (AFUE) ratings for furnaces.

An AC technician using a special tool to install a new air conditioner.

Average HVAC Replacement Cost

The average cost of an HVAC system, including installation and removal of the old unit, ranges from $5,500 to $12,500.

Importance of Hiring Certified HVAC Professionals

HVAC installation is a complex task that requires proper knowledge and expertise. We recommended hiring certified HVAC professionals for the installation and replacement process. They have the necessary skills to assess your specific needs. They ensure correct installation and guide system selection and maintenance.

Utilizing Incentives and Discounts

Consider local rebates, tax credits, and discounts to make HVAC installation more affordable. Research available incentives in your area to help save money on your HVAC project.

Wrapping it up

The cost of HVAC installation and replacement can vary significantly. The price usually depends on various factors, such as the type of system, size of the home, and location. The HVAC installation cost can increase due to extra requirements like ductwork.

While the cost is significant, it’s essential to prioritize energy efficiency. Also, consider the system performance and long-term savings when deciding on HVAC systems.

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South Florida HVAC Professionals

Snowflakes Air Conditioning has been providing professional HVAC services for over 10 years. We are committed to keeping your air conditioner running smoothly all year round. Our experienced technicians can handle anything from AC repair to sales and AC installation. Whether it’s time for an upgrade or just regular upkeep, we are a name you can trust for your HVAC needs. Contact us today for more information.

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