HVAC Replacement Cost and Installation Cost Guide

Are you looking to get a new HVAC system and want to estimate the HVAC replacement cost? The replacement cost and installation costs of an HVAC system are determined by the size of your home.

On average, the replacement cost for an HVAC unit is between $ 2,500 and $ 5,000. Be aware that replacement cost and installation cost can increase if your home’s heating and air conditioning unit requires a large number of new ductwork.

The cost of replacing your heating and air conditioning system is also determined by the HVAC system you choose.

The typical replacement cost for a complete HVAC system is between $ 4,000 and $ 20,000. The higher price range for the new central air heating and cooling system includes a wide ductwork for your HVAC unit.

Central heating

An external central HVAC system with HVAC unit. Photo of Theen… in Foter.com / CC BY-NC-SA

Factors Affecting HVAC Installation Costs

The main factors that affect the replacement cost and installation costs of a new HVAC system are:

  • Efficiency
  • Size
  • Characteristics
  • Noise level


Energy efficiency is one of the main factors that you should consider affecting replacement cost. Select a central air conditioning unit with the highest efficiency rating. In the long run, with your air conditioner running for many years, you will save money while reducing the carbon footprint of the air conditioner.

All central air conditioners and heating and cooling units have an energy efficiency rating label. Although most energy efficient units may cost more, they will save you money in the long run.


The size of a central heating or new HVAC system is another key factor affecting replacement cost that you should consider. A large air conditioning unit will easily keep your home warm or cool. Unfortunately, you will not be able to remove moisture from your home.

On the other hand, a small HVAC unit will not heat your home on cold days, nor will it cool it on hot days. To get the best HVAC unit for your home, contact a local HVAC professional service. They will advise you on the best HVAC unit size and replacement cost for your home.

HVAC system features

Most heating and cooling units have special features that improve efficiency and performance. For example, some have a built-in filter light to alert you when the filter needs to be changed.

Another crucial feature to look for is a switch that only turns the fan on. It can be used on hot days to cool the house. Such features mean getting a higher priced central heating unit. The replacement cost of the high-end units will be at the higher end of the range that we provide.

Central heating installation cost

Internal air duct, which is part of a central heating unit.

Photo by yewenyi on Foter.com / CC BY-NC

Noise levels

One of the main benefits of having a central HVAC system is the reduction in noise levels. Unlike window-based heating and cooling systems, a central system is quieter. Reviewing various central heating units will give you an idea of ​​their sound ratings.

If you are not comfortable with the cost of replacing your central heating systems, there is a way to save money on them. Start by comparing prices to try to lower your replacement cost. You can reduce your replacement cost by comparing the prices of online and local HVAC stores.

The best way to save money on replacement cost is to buy your HVAC equipment and heat pump during the summer. Stores generally raise prices for heat pump and heating systems during the winter, increasing replacement cost.

Main types of heaters

Halogen heaters, convection heaters, fan heaters, and oil-filled heaters are the different types of electric heaters that you can buy.

When looking to heat a room for a short period of time, the Center for Sustainable Energy (CSE) recommends the use of fan heaters. They are loud and not as powerful compared to other types of heaters.

If you want to heat a room for a couple of hours or more, use convection heaters because they fully heat a room.

One of the most reliable varieties are oil filled heaters. They take longer to heat up than other models, but they keep a room warm for long periods after shutting down.

Another option is halogen heaters that work quickly and are cheaper to operate. They are also known to keep punters warm on pub grounds.

Different forms of portable heater come with different heat outputs. For example, the most common outputs are 2kW, 1.2kW, and 3kW. The higher the kilowatt, the more powerful the radiator will be, but it will also be more expensive.

The following table shows the replacement cost associated with the use of different types of heaters:

Typical heat outputRunning cost

Standard hour meter

Running cost

Per hour (Economy 7, night)

Running cost

Hourly (Economy 7, day)

Oil radiator1.5 kW21 cents10 cents27 cents
Heater2 kilowatts28 cents13 cents36 cents
Convector heater2 kilowatts28 cents13 cents36 cents
Halogen heater1.2 kilowatts17 cents8 cents22 cents
Radiant Bar Fire2 kilowatts28 cents13 cents36 cents

Comparison of types of heaters

The cost of running a 1.2kW halogen heater averages 17 cents on a standard meter, which is cheaper compared to other models according to CSE information. It has less heat output than a 2kW fan heater that costs 28 cents per hour, 11 cents more to run per hour.

The most expensive radiators to operate are convection heaters. They keep the room warmer for a long period of time. In the long run, they are better than fan heaters.

Several factors are needed to analyze whether an electric radiator would save you more money than central heating. It includes how well your home is insulated and the style of the home, that is, is it new, old, modern, or has leaks.

Central heating is of two types, electric and gas, which has its pros and cons. The average cost of central heating in 2019 was $ 548. This is when the house consumes approximately 12,000 kWh per year.

This equates to one user spending around $ 1.50 a day on central heating. Please note that there are many occasions, mainly in summer, when heating will not be required. The cost is determined by the use of individual heating.

Cost of heating different houses

Naturally, the cost of heating a one-bedroom home will be less than heating a four-bedroom home. The following is a rough breakdown of what to expect with replacement cost and HVAC installation costs:

4 bedroom house HVAC cost

  • Water tanks are an essential variable
  • Heating and thermostat controls – $ 250
  • Condensing boiler – $ 1,400

3 bedroom house HVAC cost

  • Water tanks, optional as it is determined by the water pressure – $ variable
  • Heating and thermostat controls – $ 150
  • Condensing boiler – $ 900

2 bedroom house HVAC cost

  • Water tanks, optional as it is determined by the water pressure – $ variable
  • Heating and thermostat controls – $ 100
  • Condensing boiler – $ 750

Cost of the HVAC system of a 1-bedroom house

  • Water tanks, optional as it is determined by the water pressure – $ variable
  • Heating and thermostat controls – $ 50
  • Condensing boiler – $ 650

A heat pump cannot be effective on its own in increasing pressure, which means that a tank must be installed first. Although they depend on the pressure of the water in the network, condensing boilers are the most efficient.

Labor cost for HVAC installation

  • For a 4- and 3-bedroom home, it will take 4-5 days to install a new gas central heating system. 2 and 1 bedroom houses usually take 2 to 3 days.
  • Expect a worker and an apprentice to earn between $ 80 and $ 120 in one day, as this is a two-person project.
  • Subject to experience and location, a registered gas box installer charges between $ 150 and $ 200 in one day.
  • In addition to this, the company you choose may charge a fee for profit margins and overhead.
  • In addition to disposal of waste and materials, a 4-day HVAC installation project may involve an HVAC installation labor fee of approximately $ 2,250.

Additional costs

After the HVAC installation, the walls need to be redecorated and this will be up to you. Your installer will take care of it. Old materials, i.e. heaters, brackets and cables, must be discarded.

Comparison between gas and electric central heating

  • Switching from electric heat to gas for a consumer living in a 3-bedroom house will save about $ 500 a year.
  • The replacement cost you have to pay can go up to $ 1950 for an electrical system that uses peak hour electricity.
  • In one year, the approximate cost you should pay for hot water from electric central heating is $ 900, while for a condensing boiler it is $ 550.
  • In conclusion, unless you have a heat pump, using electricity is a very expensive means of heating a home.


  • These are given by the government, although the whole system is a bewildering mess of contradictory information.
  • Grants are discounts on tickets or vouchers that can be used to purchase energy-saving products.
  • Some private institutions also provide scholarships and discounts that are similar to promotions.
  • You can visit an energy savings trust in case you receive state benefits or visit the government energy grant calculator website.

Does gas central heating affect the value of a home?

Switching to a gas central heating system, if you had electric heaters, will increase the value of your home and make it more attractive to the next buyer or prospective renter. A new gas central heating system can increase the value of your home by as much as 5.4%, so the replacement cost you have to pay is well spent.

Advantages and disadvantages of central HVAC systems

Central heating installation
HVAC central heating system and cooling unit on the exterior of a building

Photo by digitearte on Foter.com / CC BY-NC

Advantages of central HVAC systems

Logistically, heating the whole house with a single unit makes things easier. An advantage for some owners is the possibility of isolating the heating unit from the living space.

Another advantage of central heating systems is the ability to provide climate control and hot water. Additionally, homeowners can adjust the temperature in different parts of their home using specific area or room temperatures, or by closing vents on new ducts.

You can also program the system to increase or decrease the temperature during specific times. All in all, central heating systems offer the best solutions with a reduced environmental impact.

Disadvantages of central HVAC systems

The main disadvantage of central heating systems is the cost of buying and installing one. The cost is higher in homes that are older than a decade. Dust and noise can also be a problem if you are very allergic to dust.

Another downside is that special permits may be required for certain equipment and fuels. Please note that central heating systems have limited flexibility in the event of changes in heating requirements. Also, there is a time delay when the system is supplying heat to the living space.

How to Find an Affordable Central Heating Contractor

The first step in finding the best central heating contractor is conducting online and offline research. This method will give you an idea of ​​the units available along with the replacement cost and the ones that best suit your needs.

For example, you can find a contractor in a different city with a unit that best suits your needs. Some stores offer free installation when you buy a unit from them. Research is the only way to find the best unit at the most affordable price.

Bottom line

Finding the best HVAC system for your home is not a walk in the park. Using the HVAC replacement cost guide above will ensure that you get the perfect unit for your home at the lowest possible replacement cost.

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