San Jose’s climate varies throughout the year and residents are used to cranking up the AC in the warmer months. At IRBIS, we’re often asked about the cost of installing an HVAC system. That’s understandable; an air conditioning and heating unit is a large investment. We will answer common questions about the cost of HVAC in San Jose, to help you plan for your next project.
How Much Should I Spend on a New HVAC Unit?
In 2022, the cost of installing or replacing an HVAC system was $7,000 on average. New installations can cost up to $12,500.1 The total price depends on many factors, including the type of equipment, the brand, and the size of the system. Also, consider the size of your home, as the cost of installing an HVAC system can range from $25 to $60 per square foot. Equipment efficiency ratings, ductwork length, and labor charges (which run from $500 to $2,500) impact installation costs as well.1
Are HVAC Costs Going Up or Down?
The COVID-19 pandemic, inflation, increasing materials costs, supply shortages, and environmental regulations have contributed to price increases in recent years. Increased demand has affected prices as well. Meanwhile, dwindling supplies of R-22 Freon and the importing of R-410A refrigerant (now required for all new HVAC systems) are also contributing to rises in prices.
New testing and efficiency requirements are set to take effect in January 2023. All new air conditioners, gas furnaces, and heat pumps must meet SEER2 requirements. Therefore, manufacturing costs are expected to rise. Suppliers, installers, and consumers are likely to see higher prices as well.
Can I Negotiate with My HVAC Installation Contractor?
Purchasing a new HVAC system is a large investment. You can try to negotiate with your contractor; it’s wise to get three or four quotes to compare bids. Many businesses match competitor pricing so make sure to get a complete set of project details with each estimate. Comparing similar quotes can give you bargaining power.
Feel free to discuss your budget with contractors, but beware of any compromise in service or expertise for a lower price. Research the contractors you may potentially hire. Check reviews, references, and that the company is licensed, insured, and bonded. Also, research the costs of equipment and materials; the knowledge you gain can be useful in negotiating with a contractor.
Other tips for negotiating include:
- Be polite but confident in persuading a contractor to lower their price.
- Offer to purchase supplies and materials yourself.
- Choose a slower season (winter or summer) for installation.
Is It Worth It to Replace My HVAC System?
If your current HVAC system isn’t that efficient, installing a high-efficiency unit can cut your electric bills by as much as 20%.2 The value of updating your heating and cooling system depends on the seasonal temperatures in your area. The more you need your AC or furnace, the greater the potential to save.
The condition of your ductwork is also a factor. If your system is more than 15 years old, the ducts may also need replacement. This can add thousands of dollars to the project. However, installing the most efficient HVAC but having poorly designed, leaky ductwork won’t enable you to see much improvement in efficiency or performance.
All factors considered, replacing the system is worth it if major repairs are needed within short time spans. Has the unit been serviced two or three times in the past year? If so, investing in a new system will avoid additional repair costs and can result in net savings.
Will Replacing an HVAC System Increase Home Value?
A new HVAC system can increase the value of your home. How much depends on the demand for an effective system. If it’s unbearably hot and humid in the summer, a new AC will increase property value more than one in a moderate climate. In other cases, a prospective buyer may not necessarily look at the age and condition of an HVAC system—unless it’s not working.
Nevertheless, a unit of poor quality and in disrepair can reduce property value. In this case, a replacement system will certainly boost the value of your home. An HVAC system with a high-efficiency rating, that’s the right type, and that’s properly sized can have the greatest effect.
Contact IRBIS for a San Jose HVAC Consultation
IRBIS, a Carrier Factory Authorized Dealer, is known for high-quality HVAC installation throughout the Bay Area. Each project starts with a consultation and whole-house inspection. We then build a custom solution for your needs with every option considered and handle planning, permits, and all installation work. A 12-month 100% Satisfaction Money Back Guarantee is included while 24/7 support is provided during and after installation. Contact us online or call 669-266-5464 to get started.