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How Much Does an HVAC Installation Cost?

If you find yourself asking “How much is a new HVAC system” you should prepare yourself for a significant financial investment. However, HVAC installation cost — and HVAC replacement cost — is an investment that is worth making, as a fully functional HVAC system will keep you comfortable and can even help make you and your family healthier for at least a decade.

And thanks to the latest developments in HVAC technology, specifically in energy efficiency, you can now choose an HVAC system that costs less for you in the long run – as compared with similar systems in years past.

Let’s just go ahead and get the sticker shock out of the way and then move on to different aspects of HVAC, its costs, technological developments, how you can save on HVAC installation, and signs that is time for a new HVAC system.

The well-known contract-search site Angi puts a new HVAC system cost at about $7,500. However, the total cost of a new HVAC system often ranges between $5,000 to $12,500, depending on several factors, including the size and condition of your home, additions to the HVAC system, brand of system, and labor costs. And HVAC replacement cost may be slightly more than that because of the factors involved in both fitting new HVAC components to older ductwork, as well as the disposal cost of old HVAC components.

To better understand the new HVAC system cost — as well as the HVAC replacement cost — let’s look at each unit of the HVAC individually. Understanding each component of heating, ventilation, and air conditioning will not go a long way in helping you select the best HVAC system for your home. Below also includes a sort of HVAC replacement cost guide.

How Much is a New HVAC Installation?

HVAC is an acronym for Heating, Ventilation, and Air Conditioning because an HVAC system is made up of a group of heating and cooling apparatuses that work in concert to keep your home comfortable and the air you breathe clean.

And while we here in north Georgia and metro Atlanta most often think of an air conditioner when we think of HVAC, the system also includes components such as furnaces, heat pumps, ductless mini-splits, thermostats, and ductwork, among other parts. And, as we are reminded at some point each winter, heating systems are just as important as a central air conditioner.

Each of these units can be installed individually or as one part of an entire system – depending on your needs. Each type of unit ranges in cost and can perform different tasks. So whether you require an HVAC unit replacement or an entire HVAC system replacement, you should familiarize yourself with different HVAC units and HVAC system prices.

With that in mind let’s look at various parts of HVAC systems and the parts responsible for heating (furnaces, heat pumps, air conditioners, etc.) and what each HVAC system cost you can expect — for a new or replacement unit.

A/C Costs

A central air conditioning unit (or AC) is the most popular piece of HVAC systems here in north Georgia. And no wonder when you consider the heat we typically experience – late summer of 2023 offering particularly scorching temperatures. In fact, most HVAC systems in north Georgia have some sort of central air conditioning unit.

According to Architectural Digest, you can expect a new ac unit or replacement cost to run anywhere between $3,800 to $7,700. However, the new AC unit cost of some brands can skyrocket to five figures, depending on various factors, including the size of your home, the air conditioning type, and installation costs.

That cost may sound exorbitant, but the good news is, thanks to energy efficiency levels — termed as SEER (seasonal energy efficiency ratio) — available in many brands and styles, most new air conditioners mean lower energy bills. And when you pair these types of HVAC installations with other apparatuses designed to increase efficiency (such as a smart thermostat), you will see that the new HVAC replacement cost will pay for itself over the lifetime of the unit.

Furnace Costs

In this type of heating system, a furnace blows heated air throughout your entire home. In fact, a furnace offers a quick and particularly warm source of heating. In north Georgia, we mainly see two types of furnaces: the electric furnace and the gas furnace.

You should expect a new furnace install or furnace replacement to cost between $2,000 and $11,000 – depending on a range of factors. Note that a new electric furnace is extremely energy efficient, but it does not offer quite as much immediate heat as a gas furnace. However, because of our location, electric furnaces are still a great option to heat an entire home. Gas furnaces also offer incredible comfort and energy efficiency.

Heat Pump Costs

Heat pump systems work on the principle of heat transfer – that is a heat pump removes heat from your home in the summer, and, conversely, transfers outdoor heat inside your home in the winter. This is an extremely efficient method of home heating and cooling. However, as you may have guessed, a heat pump does not always deliver the hottest air in the winter. That said, our typically mild weather here in north Georgia means that a heat pump is still a very good choice for a home HVAC system.

Heat pumps also come in a variety of styles, including centrally ducted heat pump systems (which can comfort your entire home) and ductless heat pump mini splits (which are perfect for singular rooms or sections of your home), as well as geothermal heat pump options. Because of these variations, a heat pump typically costs between $3,700–$11,000.

Add-Ons and Upgrades

A home HVAC system includes a wide range of components, as well as additions and upgrades that are designed to make you as comfortable and as energy-efficient as possible. HVAC pros or an HVAC tech should be willing to talk with you and ensure that you learn about each unit, including its cost before you decide to purchase one of these HVAC components and undertake its installation.

Some of the most common, and helpful/useful additions include:

·      Smart thermostats

·      Air purifiers

·      Dehumidifiers

·      U/V lamps

Each of these add-ons and — yes, additional costs — have undergone impressive developments over the past decade and are worth learning about before choosing your new HVAC installation or HVAC replacement. Yet know that the HVAC unit cost of each component offers much to recommend it.

Smart Thermostats

A smart thermostat offers many advantages in heating and cooling – not just in providing comfort but also in providing quality air (and more) in the most efficient manner possible. And while a new thermostat costs more upfront it will most certainly pay off in long-term energy costs.

Smart thermostats do this because they learn your air conditioning and heating needs, and personal comfort preferences, process that information and then heat and cool your home in a method that will help you save up to 23 percent in annual energy cost.

Smart thermostats even allow you to interact with your thermostat remotely with your Apple or Android devices. They also work seamlessly with third-party smart home platforms such as Apple HomeKit, Amazon Alexa, Google Assistant, Samsung SmartThings, and IFTTT.

This HVAC unit constantly analyzes patterns and adjusts itself to meet your needs most efficiently. They even take the outside weather into account each day, so that they understand how hard (or lightly) it may need to work to achieve the best indoor atmosphere.

The U.S. Department of Energy says that the average cost for a smart thermostat is $420 but this amount can vary depending on the thermostat you chose and the price of installation. Considering its price this HVAC unit replacement cost is worth its weight in gold.

Air Purifiers

Modern air filtration, specifically HEPA filters, can produce amazing results in removing allergens, dust, pollen, spores, and other particles from the air inside your HVAC system. Some air purifiers can even capture odors, viruses, and bacteria. These filtration systems – which are based on a MERV (Minimum Efficiency Reporting Value) rating – work by pushing air through a filter or series of filters inside the HVAC system.

These next-generation filters do a thorough job cleansing the air that flows through your air conditioning and heating units, removing irritants and even the dust particles that can wear on your HVAC unit parts (thus prolonging the life of your HVAC system).next-generation

A whole-house air purifier costs $400 to $4,000, depending on the type of filtration system, efficiency rating, and labor to install. Be sure to ask your contractors about MERV ratings (the higher the number, the better the filter). HEPA filter systems cost $1,000 to $4,000 with installation and are the most effective at removing dust and allergens from the air.


When we think of HVAC systems, we usually think of temperature alone, but humidity is equally important in determining your comfort. Ideally, you want a relative humidity level of 30-50% in your home. Above 50% may feel sticky and could even encourage mold and mildew growth inside your home. Air that is below 30% humidity could lead to dry skin and irritated nostrils.

Living in north Georgia, we usually have an abundance of humidity in the outdoor air, which is why a dehumidifier offers improved indoor comfort and better health – it can also reduce cooling costs. This is because moist air makes your air conditioning unit work harder, and a harder-working AC is a more expensive AC. Removing excess moisture also protects furniture and paint which minimizes the chance of mold or mildew inside your home.

Dehumidifiers can cost between $1,300–$2,800.

UV lamps

The latest in HVAC system technology, UV lamps can scrub the air in your home with the type of cleaning power once reserved for major government, corporations, or military installations.mercury-free

Scientific studies show that ultraviolet-C (UV-C) light significantly destroys pathogens – including the viruses and bacteria that cause severe illness, such as the novel coronavirus that causes COVID-19. And induct, whole home, UV lamps (which are both mercury free and zero ozone compliant) can proactively treat every cubic inch of air-conditioned space in a structure.

Many UV lights also feature self-cleaning parts, a long-lasting battery, and a multi-year warranty, making this latest development one worth asking your HVAC contractor about. And many of these units cost around $1,000.

What Influences HVAC Installation Costs?

HVAC installation is not just based on the parts involved. There are other factors that will determine just how much you spend on your HVAC installation or HVAC replacement costs. Some of these include:

  • The size and layout of your house
  • The reusability of your home’s ductwork (if all or parts of that need replacing, costs will increase)
  • The new system’s energy efficiency
  • The type of HVAC system
  • Project complexity
  • Factory and dealer rebates

It is important to find an HVAC contractor that will go over all of these factors in-depth and provide you with a written estimate so that there are no hidden fees or surprise costs. Conditioned Air Systems prides itself on ensuring that our customers know exactly what to expect on each and every job because of our clear and concise estimates.


When you purchase a new HVAC system, a large amount of your fees will be based on labor costs. And the size and scope of the job will determine just how much labor (and thus costs) are involved. Because of the size of the job, it will also likely require paid building permits.

HVAC contractors generally charge between $75 and $250 per hour for AC installation. Anything that increases the time a project will take also increases labor costs. If you are replacing an older system, that may also increase the cost in terms of removal and disposal, which can cost $150 to $250 for an old air conditioner or $50 to $200 for an old furnace. That is why you should always expect HVAC unit replacement costs to be a little higher.

House Size

It stands to reason, that the larger your home, the more work it will take to install a new HVAC system. It will also cost you more in the HVAC system size required to heat or cool a larger home.

An air conditioning system typically costs between $2.90 and $7.20 per square foot of home space. HVAC unit size is often measured in BTU, or British thermal units. Air conditioners may also be measured by tons, which refers not to the unit’s weight but how much air it can cool in an hour.

That is why it is important to talk with your HVAC contractor and have them provide a complete written estimate of what it will cost to comfortably heat and cool your home – as well as labor cost breakdowns.


The weather certainly factors into your HVAC system costs. Because we live in a climate that is often hot and sticky, you will need a reliable method of delivering cool and comfortable air throughout your home – that means it must not only be the right temperature but also in that sweet spot of 30-50% humidity level.

Because of some of the weather extremes that we experience here in metro Atlanta and throughout the northern part of the state, you should also select an HVAC system that can handle both extreme heat and the occasional arctic blast. You will also want a unit that can deal with wind and rain (for the outdoor section), which is why warranties and guarantees can also play a key role. Be sure to talk to your HVAC contractor about any new system’s ability to handle our weather extremes.


Because of its nature, new ductwork can be expensive. And if you live in an older home that requires some of your ductwork must be replaced when installing a new HVAC system, you can expect that to be reflected in the cost. The same goes for a brand-new home in which a contractor must build an HVAC system from the ground up (though older homes can be worse, simply due to spaces and angles that were created without HVAC in mind – modern homes are built with HVAC and ductwork as much more of a consideration).

The good news is that there are not many HVAC companies that produce their own ductwork in their own facilities. It is an ability that saves money and allows us to pass those savings on to the customer. Conditioned Air Systems has that ability, which helps keep our prices lower for our customers.

Brand of HVAC Unit

As with everything in life, you get what you pay for. Certainly, there are some HVAC brands that are more expensive than others and new HVAC systems are not cheap. But, in many instances, up-front costs will pay for themselves over the course of the HVAC system’s life – both because of reliability and energy efficiency.

There are many names in the HVAC industry, but few are as trusted as York, Trane, Carrier, Lennox, and Daikin. And Conditioned Air Systems is proud to install each of these brands.

Each of them is backed by significant manufacturer warranties and each has a reputation for quality service. And because we also guarantee all of the work, you can rest assured that any HVAC system that we install will provide years of carefree comfort.

Tips for Saving on HVAC Installation

There are several methods for saving money and avoiding exorbitant costs on your HVAC system installation. And while each requires a little bit of work from you, the customer, they are more than worth it if you’re trying to avoid the most expensive HVAC systems.

Search for Rebates

A quick web search should present you with numerous current rebates from leading HVAC manufacturers. Utility companies also offer rebates and incentives to purchase more energy-efficient models and units, which can help keep HVAC costs lower.

Ask your HVAC Contractor to See if They Offer Specials

Sometimes, when HVAC contractors are not as busy, they will offer installation or replacement specials as an incentive to buy a new HVAC system.

Get Multiple Quotes

You should poll multiple HVAC contractors to see how their offers and estimates vary. It will take some time, but ask them to come to your home, survey the entirety of the task, and provide a thorough appraisal of what a new HVAC installation will cost. This will allow you to vet contractors for the best HVAC system cost and teach you about the contractors themselves. You may not necessarily choose the cheapest contractor but the one that works hardest to please you.

Signs That It’s Time for a New HVAC System

If you’re wondering whether it is time for you to purchase a new HVAC unit, including ductwork, ask yourself (and answer!) these questions:

How Old is your HVAC and Ductwork?

As impressive as the HVAC equipment of the last 20 years or so is, it has a shelf life. Certain brands of systems and conditions make for longer life than others (such as having your system professionally maintained twice a year), but most air conditioning systems last around 15 years. So, if you’re experiencing consistent or acute issues and your system is over 15 years old, go ahead and prepare yourself for the cost of HVAC replacement. The good news is that, once you pay for the new system, it will end up saving you in the average cost of your monthly utility bills, as the latest systems are energy efficient as never before.

Does Your Old HVAC System Require Frequent Repairs?

Just because you can repair your system does not necessarily mean that is the right choice – especially if you end up paying for the same repair again just a few weeks or months later. Repairs may not be quite as expensive as replacing an entire system, but they can be pricey on their own. And if you face repair issues more than once a year or two, it may well be more cost-effective to just go ahead and replace the entire unit.

Are You Experiencing a Lack of Cool Air and/or Limited Airflow?

Now we begin to look at the specific issues you may be facing, and this one is a surefire sign that something is wrong. If, from the moment that you engage your air conditioner on your thermostat, you do not receive cold air within a couple of minutes, then you know something is wrong. Just what is the issue? Well, it could be clogged piping and/or ductwork, which restrict airflow and will not resolve on their own. Or it could be a blown fan motor. Whatever it is, you should have a professional check out the problem ASAP.

Do You See Water or Moisture Build Up Around the Air Conditioner?

It’s alright if you see a little bit of moisture around your AC unit. They all produce some moisture. However, if you see standing water or hear consistent dripping, such as that of a leak, your unit may be experiencing a refrigerant leak. A leak of this type will make your system malfunction but could be even worse, as it could lead to a health risk for your family. You also want to make sure there is no standing water around the unit – inside or out – as this is an invitation for mold and mildew growth. Have a professional check out this development immediately.

Have You Heard Strange Sounds From Your Unit?

If your air conditioner is emitting strange noises – especially grinding, squeaking, chattering or even a loud hum – it could be that something serious has malfunctioned or broken. Modern air conditioners are designed to make as little noise as possible. In fact, it’s doubtful that you’ll even notice yours when it is running. So, if you suddenly notice that it is, there’s a good chance that it needs to be checked and diagnosed right away. Ignoring it won’t make it go away and could in fact make what could be a repair problem a unit replacement problem.

Do you Smell Something Foul or Unpleasant?

If you suddenly notice any nasty or acrid smells emitting from your air ductwork, you should turn your system off and call a professional immediately. Remember the water we talked about? You could be introducing mold or mildew into your home via your air conditioner. Or a part may have burned out or is creating serious friction – which causes that burning smell. Any of these eventualities need to be assessed immediately.

Are Your Energy Bills High or Constantly Increasing?

Certainly, you expect to pay more in energy costs as the temperatures rise and your air conditioner begins to work harder and longer hours. However, have you noticed that prices have suddenly increased over this same period last year? If they have – and the weather is not drastically different, then it could be a sign that your unit is having to work too hard to do the job of cooling your home. This may be corrected by HVAC unit replacement and installing new, more energy-efficient systems, including smart thermostats, which allow you to better control the usage of your entire HVAC unit.

If you’re still not sure, please give a professional a call. At Conditioned Air Systems we’re always ready to come to you and perform a thorough, free evaluation of your HVAC system and then tell you exactly what we’ll do to fix it. We’ll provide a thorough HVAC replacement detail cost report because we pride ourselves on doing a job with no hidden costs – one that is done right the first time and provides years of worry-free comfort for our customers. It’s what helped make our name when we opened our doors in 1983 and turned us into one of the leading HVAC contractors in north Georgia and metro Atlanta.

To talk with an HVAC pro and learn more about Conditioned Air Systems, our HVAC pricing, and the approach that keeps so many homes comfy year-round, call us today at 770-536-7509.

Conditioned Air Systems

Your Trusted HVAC Experts for Home Comfort and Efficiency

Whether you need a new HVAC system installed or simply need repairs, give us a call. We are here to help!