How Much Does Installing a New AC Unit Cost?

On February 16, 2025 By newsroom Topic: Home Services

A new air conditioning unit can be a game-changer for home comfort, particularly during hot summer months. Here's a breakdown of the costs, types, and factors influencing installation:


Typical Costs

  • National Average: $3,800–$7,500.
  • Unit Only: $1,500–$4,000 (varies by brand and capacity).
  • Full Installation: $3,000–$11,000+ (depending on system size, labor, and extras).
  • High-End Systems: $10,000–$15,000+ for premium or large-capacity units.

Regional Installation Costs

| City | Average Cost |
|------------------|------------------|
| San Diego, CA | $6,170 |
| Denver, CO | $4,640 |
| Austin, TX | $5,840 |
| Madison, WI | $4,360 |
| Atlanta, GA | $4,515 |
| Philadelphia, PA | $6,350 |


What You Can Get on Your Budget

| Budget | What to Expect |
|-------------------|----------------------------------------------------------------------------------------|
| $4,000 | Basic 2-ton central AC unit, standard labor costs. |
| $5,000 | Mid-range AC unit with improved efficiency (SEER 16–18), standard installation. |
| $8,000+ | High-efficiency system (SEER 20+), premium features, larger capacity, advanced labor. |


Cost by Type of System

| AC Type | Cost Range | Key Features |
|---------------------------|---------------------------|-------------------------------------------------------|
| Central Air | $3,815–$7,480 | Most common; cools entire home via ductwork. |
| Ductless Split System | $2,000–$14,500 | Energy-efficient, no ductwork needed. |
| Window AC Unit | $150–$500 | Best for small spaces; low installation cost. |
| Portable Unit | $90–$500 | Movable; suitable for single rooms. |


Factors That Influence Cost

  • Unit Size (Tonnage):
  • 1 ton = 12,000 BTUs/hour (cooling capacity).
  • Rule of thumb: 1 ton for every 500–600 sq. ft. of living space.
  • SEER Rating:
  • Higher SEER (Seasonal Energy Efficiency Ratio) = More energy-efficient, higher upfront cost.
  • Standard: 13–16 SEER; Premium: 20+ SEER.
  • Labor & Installation:
  • Ductwork modifications, electrical wiring, concrete pad, and framing increase costs.
  • Brand:
  • Budget Brands: Payne, Coleman, Comfortmaker (<$2,000).
  • Premium Brands: American Standard, Carrier, Lennox (>$3,000).
  • Additional Features:
  • Smart thermostats, noise-reduction fences, or zoning systems add to the cost.

DIY vs. Professional Installation

  • DIY:
  • Not recommended due to complexity (EPA certification required for refrigerant handling).
  • Risk of improper installation can lead to higher repair costs.
  • Professional:
  • Ensures proper sizing, safe installation, and compliance with local codes.
  • Costs include labor ($50–$150/hour) and permits ($50–$200).

FAQs

1. How often should my AC be serviced?

  • Annually, preferably before summer.
  • Clean evaporator coils and check refrigerant levels to ensure efficiency.

2. Repair or replace my AC unit?

  • Repair: If unit is under 10 years old and repair costs are minimal.
  • Replace: If unit is over 15 years old or repair costs are close to replacement costs.

3. Can I lower costs with rebates?

  • Check for state and local rebates for ENERGY STAR-rated systems.

A new AC unit is an investment that pays off in comfort and energy savings. Choose wisely to stay cool!


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