If you’re struggling with an aging or inefficient HVAC system, you’re probably debating whether to repair your current one or just replace it with a new system altogether. Your answer to this question may ultimately save both money and valuable time, so it’s worth going through all of the options. In this guide, I’ll help you come to the right decision.Â
A home warranty can help save on some of those costs. For HVAC, I recommend reading our First American Home Warranty review, our Choice Home Warranty review, and our American Home Shield review.
Signs It’s Time to Replace Your HVAC System
HVAC systems, air conditioners, and heat pumps tend to lose their efficiency after 10 years, and their risk of breakdowns also goes up. If your system is over a decade old, it’s probably time to start planning for significant repairs or total replacement.
A new HVAC unit can be expensive up front. According to Angi, they cost about $5,000–$12,500 on average, with higher costs for ductwork and extra features. However, the larger investment in a new system can save you money later on repair and utility bills.
If you notice any of these signs, it might be time for an HVAC replacement:
- Increasing energy bills: A spike in your energy usage — beyond a typical seasonal adjustment — could indicate an issue with your HVAC system. If you’ve been in your home for more than a year, compare your utility bills to see if you consistently exceed your previous year’s energy costs. A new unit will provide significant energy savings for most homeowners.
- Humidity problems: If your house is too dry in the winter or too humid in the summer, there may be a problem with your HVAC unit’s ductwork. Some homeowners prefer to tackle these repairs themselves, even if it’s a costly and time-intensive process. For most people, it’s better to hire an HVAC professional for ductwork repair and upgrades.
- Uneven temperatures: If you have a one-zone system in a two-story home, it’s normal for temperatures to fluctuate. Where you should be concerned is if there are wide fluctuations between rooms, especially on the same level. Sometimes, it’s a badly calibrated thermostat that causes fluctuations, and other times it’s something more serious like leaking ductwork.
- Frequent repairs: If you need more than one repair session per year for your HVAC system, or if you’re dealing with serious issues like a water leak or Freon leak, it might make more sense to purchase a new system and absorb the short-term replacement cost.
Have your HVAC system checked at least two times a year — once in the spring and once in the fall. Even if your system has no major issues, it’s still a good idea to protect its functionality and life span through a tuneup.
If Your HVAC System Isn’t Working
If your HVAC system isn’t working and your troubleshooting can’t resolve the issue, it’s time to send in the pros. Rely on recommendations from trusted family and friends to find HVAC contractors in your area, then call and interview each company you’re considering.
During a service visit, your HVAC technician should do each of these tasks:
- Run a diagnostic test of your system
- Inspect or clean the air filter
- Calibrate and inspect the thermostat
- Check Freon levels
- Test system safety mechanisms
- Inspect the heat exchanger and clean burners
- Check the condensate drains and pumps
- Inspect duct system
- Check and clean the humidifier
- Assess the flue piping
- Examine and clean the coils
- Verify the electrical components
- Check zoning controls
- Evaluate the motor and compressor amp draws
- Apply motor oil if necessary
Concerns with smaller components are easily fixed at a reasonable price. For major parts and systems, the repair costs can get much higher. Ask your technician for an itemized estimate before you proceed. Sometimes, the cost to replace the system may be less than the cost of repairs.
Affording HVAC Unit Replacement
When you replace your HVAC unit, you may automatically benefit from better energy efficiency and lower power bills. However, there are a few other cost considerations you should know about.
- System efficiency: Annual fuel utilization efficiency (AFUE) measures how efficiently an HVAC unit can convert energy to heat in a typical year. It’s always listed as a percentage, and can be measured by an HVAC technician if you don’t already have a spec sheet for your unit. The U.S. Department of Energy recommends an AFUE of 90% or higher. Units below the mark may be prime candidates for replacement.
- Utility rebates: Some utility companies offer incentives to upgrade to an energy-efficient HVAC unit. Look up available rebate programs where you live as you make the decision to repair or replace. With the right rebates, you can get help offsetting the upfront costs.
- Your budget: Replacing major appliances is never convenient, and sometimes, a short-term repair may be the only option you can afford. It’s best to start planning and saving money for a full replacement in the future.
Ultimately, everyone’s circumstances and financial situation are unique. The decision to repair or replace your HVAC unit is yours, and balancing what needs to be done with what you can afford is the best way to approach it.
Considerations for a New HVAC System
If you’ve decided to replace your HVAC unit, here are a few factors to consider when you choose which one to purchase:
- Geography: Colder regions require more heat, and vice versa. An energy-efficient but more expensive furnace makes more sense in Minnesota than Florida, and a more expensive and efficient air conditioner would make more sense to install in Arizona than in North Dakota.
- Your current system: It might be the simplest and most cost-effective option to buy a new model of your old system. If you don’t have ductwork, consider a ductless system or portable AC unit.
- Power type: Research your options before you buy a new furnace. You can choose from natural gas, electric, or heating oil furnaces, heat pumps, and boilers based on your home’s existing infrastructure.
- Your home’s size: For larger homes over 1,000 square feet, it may be more efficient to use central air compared to using portable units for HVAC zoning.
- Tax credits: Tax credits can save you up to 30% of the cost of newer, more efficient systems. Look for ENERGY STAR options when replacing your heater.
Read also: Cleaning Air Ducts
Evaluating New Technologies
In recent years, HVAC technology has seen significant advancements that not only improve energy efficiency but also enhance comfort levels within the home. Homeowners considering a new HVAC system should explore these innovations:
- Smart thermostats: Smart thermostats let you control your home’s temperature more precisely by setting a schedule in advance. With some models, you can also integrate your HVAC system with an existing smart home system.
- Zoned HVAC: Zoned HVAC lets you control temperatures in individual areas to provide a tailored climate for each part of your home. For example, you can keep your living room comfortable during the day and save energy in your guest bedroom.
- Variable-speed units: Variable-speed air handlers and compressors adjust their output to match your home’s exact needs. This helps room temperatures stay consistent, prolongs the HVAC system’s life span, and cuts down on energy costs and noise.
