How Much Does a New AC Unit Cost to Install? [2023 Data]

Air Conditioning Unit Installation Cost Factors

A new AC unit costs $5,905 on average, though most homeowners will pay between $3,885 and $7,931. For top-of-the-line ductless split system models, you may pay up to $12,000. Factors like air conditioner type, size, ductwork, and local contractor fees will impact the cost of a new AC unit.

New AC Unit Cost

When considering the overall cost of installing a new air conditioner, it’s just as important to understand the unit’s price. The cost of purchasing a new AC unit will depend on the type you choose and the size of your home. For example, a widow or portable AC unit will be less expensive than a central air conditioner. Below you can find the average costs for a new AC based on type:

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Cost of Existing AC Unit Replacement vs. New AC Unit Installation

Replacing an existing AC unit will cost anywhere from $3,900 to $7,900. This cost assumes that you already have the required ductwork and electrical setup to simply replace the old unit.

Installing a new AC unit from scratch calls for adding new ductwork, which typically costs between $3,000 and $7,500 for 300 linear feet. Your home size and the total length of ductwork will also impact the price.

Size of the Air Conditioning Unit

The first step in installing a new air conditioning unit is determining what size AC you need. You don’t want one without sufficient power to cool your home, and getting an air conditioner that’s too big can be relatively expensive and provide less comfort due to uneven cooling.

AC units are measured in tons, which refers to the amount of heat they can remove from a home in one hour. A 1-ton unit, for example, can remove 12,000 British thermal units (BTUs), while a 3-ton system will remove 36,000 BTUs. The larger your house, the more cooling power you’ll need. The general rule is that you’ll need one ton of cooling for every 500 or 600 square feet.

“Many people are tempted to buy larger units for faster cooling,” says Bob Tschudi, Angi Expert Review Board member and a general contractor based in Raleigh, NC. “But the result can be higher electric bills, inconsistent cooling, higher humidity and, in some cases, mold. Your HVAC contractor will calculate the exact size unit for your living space.”

However, many other variables factor into which size air conditioner will work best in your home. For example, a basement is naturally cooler than first- or second-floor rooms. Rooms with high ceilings also require more air conditioning or the addition of ceiling fans to circulate air better.

Labor

You’ll want to ensure a crucial task like this is done correctly. To avoid potential injuries or problems with unit sizing or installation, ask an experienced local AC installation pro for a quote on your system. That way, you can enjoy your home in ultimate comfort without worrying about the potential problems and costs involved in improperly placing a new unit.

Brands

It’s best to opt for AC unit brands with an established reputation for service and longevity. Certain brands are also known for performing well in specific climate zones. Before selecting your AC unit, ask your HVAC specialist to fill you in on the benefits and features of the top-performing brands in your region.

Here are some top AC unit brands to consider:

• American Standard®

• Lennox®

• Amana®

• Frigidaire®

• Coleman®

Seasonal Energy Efficiency Ratio (SEER)

The seasonal energy efficiency ratio (SEER) is also a critical factor. This ratio measures an AC unit’s total cooling output in BTU during a season, divided by its total electric energy input. The higher the resulting number, the better. All units sold are over 13 SEER, and some can perform at up to 27 SEER.

The advantages of improved SEER ratings are lowered energy costs and cooling times, but they come with a corresponding cost increase for the new unit and installation. If your hot weather season isn’t particularly long, the increased price may not be worth it. But if you need to replace a broken AC unit with a new one anyway, this might be something to keep in mind to help offset your energy bills long term.

AC Installation Cost for Older Homes vs. New Construction

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Older homes’ building materials and setup may be trickier for your HVAC technician to work with, which may result in additional labor charges. Suppose you’re investing in a new AC unit for an older home. In that case, it’s a good idea to factor in the cost of installing new insulation to maximize its performance and energy efficiency. New installation can cost between $1,100 and $2,600.

AC Installation Cost for Different Types of Units

Depending on your living situation and budget, there are a variety of AC systems to consider. Higher-priced units usually offer better energy efficiency and longer life spans than less expensive systems, but not always. Before deciding which type of AC unit is right for you, it’s helpful to consider overall costs.

Central Air Conditioning System

Central air conditioning systems cool air at a central location and then distributes it throughout the home via fans and ductwork. These systems usually last between 10 and 20 years. A central air conditioner costs between $3,900 and $7,900 to install.

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Ductless Split System

Ductless split systems comprise an indoor air handling unit and an outdoor air compressor connected by a conduit. The indoor unit pulls in warm air before blowing it back out as cool air, all without the need for ducts. Benefits of ductless AC systems include low-maintenance upkeep, no need for ductwork (which can be expensive to repair or replace), and quiet operations compared to central AC. Ductless heating and cooling systems cost between $1,200 and $17,000, depending on how many indoor units you need.

Window Air Conditioner

Window air conditioners work well for smaller spaces and for homeowners or apartment dwellers who need a solution other than a central AC installation. Window AC units typically cost $150 to $550 to install, and the average cost to run a window air conditioner is $0.06 to $0.88 per hour at $0.13 kWh.

Portable Air Conditioning Unit

Portable air conditioning units, aka “swamp coolers,” are not true AC systems, but they can cool larger homes on a tight budget and with less energy consumption than central air and ductless split systems. Portable AC units cost $100 to $500. Since air conditioners also dehumidify the air, they will collect water. In arid areas, the water will evaporate, but in humid areas, you will need to empty the reservoir periodically.

HVAC System (Furnace and AC Combination)

HVAC systems include both cooling and heating capabilities. Like central AC, they cool or heat air at a central location before distributing it throughout the rest of the home through vents and ducts. New HVAC systems cost between $5,000 and $12,500 to install.

Geothermal

A geothermal heat pump costs anywhere from $4,200 to $24,000, depending on your home’s size and whether you need to install additional ductwork. This pump works by pulling warm air from the home and cooling it in underground pipes before it gets recirculated through the system. Likewise, cold air is pulled from the home during the winter months and warmed in the same way.

Commercial Buildings

Installing an HVAC system in a commercial building typically ranges from $7,000 to $30,000, depending on the size and the type of system. Since these are generally larger buildings, they will need higher-priced units with greater output capabilities.

Additional Costs to Consider

In addition to the AC system itself, it’s helpful to consider several other costs that can accompany installing a new AC unit, such as electrical, plumbing, and warranties.

Plumbing

Central AC systems require drain lines to remove condensation from the air handler. Adding a drain line is usually included in the cost of installing a new AC system. But if not, you can expect to pay $100 to $150 for it.

Electrical

Central AC units must connect to a dedicated circuit with a standard 240-volt connection. Most AC units also require 15 to 60 amps of power, depending on their size. If your home doesn’t have the required electrical circuit, you’ll need to hire a local electrician to install one. New electrical circuits range from $100 to $150.

Ductwork

If you’re installing a new central AC system but don’t have existing ductwork, you’ll also need to pay to install ducts. Installing new ductwork costs between $3,000 and $7,500 for 300 linear feet. The overall cost depends on the size of your home and how much ductwork you need.

Number of Zones

Some larger homes with multiple floors require multiple AC systems to cool the whole house. The area where your AC system can effectively cool is called a “zone.” If you need to cool multiple zones, you should budget for the cost of installing more than one AC system.

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Removal of Existing AC System

Many companies will remove and dispose of your existing AC system when they install the new system. But if you need to have it removed separately, you can expect to pay around $25 to $200, depending on the size of your system and how easy it is to access.

Permits and Potential Fees

Most regions require that your AC system is installed by a properly licensed professional to ensure the system is safe for use. Before signing a contract, make sure your HVAC pro is licensed and committed to adhering to any local and federal regulations to avoid potential fees for improper installation.

Home Modifications

Whether it’s an additional room or a vaulted ceiling, adding more space to your home means your AC unit will also need to be updated. It may be the addition of new ductwork, but it could also require a new, larger AC unit to accommodate the new space.

Warranties

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Most central AC manufacturers offer a warranty between 5 and 10 years that covers parts and equipment. But you can often purchase an extended warranty that will cover the unit for longer. Extended warranties typically cost $100 to $500, depending on their length and coverage. Keep in mind that HVAC warranties don’t automatically transfer to new homeowners when you move into a new home.

DIY vs. Hiring a Pro

Installing a central AC unit isn’t a job you should tackle on your own. While it’s possible to purchase an air conditioner from a wholesaler and install it yourself, it requires some serious skill to do it correctly. You must be certified by the Environmental Protection Agency (EPA) to handle refrigerants. It is generally safest to hire a state-licensed local HVAC contractor to complete the installation for you.

For homes that have never had central AC, installation requires new breakers in your electrical panel, new wires to be run through your foundation, new duct work linking to your existing HVAC system, framing and finishing areas for ductwork, and mounting your unit on metal brackets or a concrete pad. All told, it’s a fairly complex project that should be handled by a professional HVAC contractor.

Window AC and portable air conditioning units are the exceptions to this rule, as you will not need to worry about ductwork or installing new breakers. These can be DIY installed and will not require an HVAC professional to do the job safely and correctly.

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Average Cost of AC Installation by Region

Wondering how the price of AC unit installation in your region compares to others? Here are some service price estimates across various areas of the country:

Cost-Saving Tips for AC Installation

Installing a new AC unit can be stressful, especially if you’re on a tight budget. Here are a few great ways to keep costs down:

• If possible, consider the best time to install an AC, which is during the fall or spring.

• Check for government rebates and tax breaks when upgrading to a high-efficiency system.

• Consider opting for window units or a ductless split system if you only need a few rooms cooled in your home.

• Get at least three quotes from qualified HVAC professionals to find the best deal.

• Ask your HVAC contractor about financing options to make your new AC unit cost more affordable.

• Invest in yearly maintenance to avoid costly repairs and get the most from your AC unit’s lifespan.

Reduce Costs by Earning Tax Credits and R-22 for New AC Units

It’s possible to find rebates or tax breaks from federal or state agencies to offset the cost of air conditioning. Home upgrades that are ENERGY STAR® approved can provide up to $3,200 annually in federal income tax credits until the year 2032.

State governments may offer rebates if you install a particularly high-efficiency system, but they are often limited in duration. It’s worth researching your state’s rebate options before you hire a professional air conditioning company.

In addition, air conditioning manufacturers are phasing out the hydrochlorofluorocarbon (HCFC) known as R-22, which is an ozone-destroying greenhouse gas. As of 2015, R-22 production has gone down by 90%.

Under current regulations, manufacturers may no longer produce, and companies may no longer install new AC units that contain R-22. Companies can still manufacture new parts, such as condensers with R-22, for replacement in existing units.

Kelly Weimert contributed to this piece.

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