How Much Does It Cost To Install Central Air?

What Factors Influence the Costs of Central Air Conditioning (AC) Installation?

How much does it cost to install central air conditioning? Well, the cost can vary based on several factors such as size, efficiency, labor, and brand. 

Not to mention, according to Statista, the air conditioner market in the United States generated $8.52 billion in revenue in 2024. This highlights the significant demand and investment in this area.

Nevertheless, let’s break down each factor one by one below:

Central AC System Size

The size of your central air system doesn’t refer to its physical dimensions but rather its cooling power or capacity. This capacity is measured in BTUs, or “British Thermal Units”. 

One ton is equal to 12,000 BTUs, so a 3-ton air conditioner is equivalent to 36,000 BTUs.

The larger the unit, the higher its cooling capacity and cost. On average:

• A 1-ton AC unit can cool 500 to 600 square feet.

• A 1.5-ton unit can adequately cool 750 to 900 square feet.

Here’s a breakdown based on different sizes:

TABLE

Square Footage

The size of the air conditioning unit you need is determined by your home’s square footage. Larger homes require units with higher cooling capacities (BTUs).

For example, to cool 750 to 900 square feet, you would need an 18,000 BTU unit, which is a 1.5-ton unit and can typically cost between $2,500 and $4,500.

Don’t forget to consider the higher monthly costs associated with running larger units for bigger homes. Additionally, if your home has vaulted ceilings, you’ll need a central unit with more output, which will also increase the cost.

• Home Size (Sq Ft)Central AC Unit Cost on Average
• 750 – 900$2,500 – $4,500
• 1,000 – 1,200$3,100 – $5,100
• 1,500 – 1,800$3,400 – $5,400
• 2,000 – 2,400$4,200 – $6,200
• 2,500 – 3,000$4,300 – $6,800

Type of Central AC System

The size and layout of your home can influence the type of central air conditioning system you choose, which will affect the overall cost. Here are a few types:

• Type of Central Air UnitEstimated Cost Range
• Packaged central air conditioner$1,500 - $7,900
• Split-system central air conditioning$600 - $20,000
• Geothermal heat pumps$4,200 - $24,000
• Air-source heat pumps$3,000 - $8,000

Packaged Central Air Conditioner

Packaged central AC units, which are popular among homeowners, house the compressor, condenser, and evaporator in a single outdoor unit.

These units are usually installed on a roof or the side of your home, with costs ranging from $1,500 to $7,900.

Make sure to factor in the costs of ductwork if it needs to be installed.

Split-System Central Air Conditioning

This system consists of an outdoor unit (condenser and compressor) and an indoor unit (evaporator coil) connected by refrigerant lines and can cost anywhere between $600 to $20,000.

The best part is that it doesn’t require ductwork, making it an economical option for homes with an existing furnace.

Geothermal Heat Pumps

Geothermal heat pumps use underground loops to transfer heat between your home and the ground for both heating and cooling. They provide consistent efficiency regardless of outdoor temperatures.

While the initial cost can range from $4,200 to $24,000, these systems offer greater long-term efficiency and lower operating costs.

Air-Source Heat Pumps

Air-source heat pumps transfer heat between your home and the outside air using above-ground units. They can heat and cool efficiently but may be affected by extreme outdoor temperatures.

These systems cost between $3,000 and $8,000, and are easier to install, but might have higher operating costs in extreme climates.

Efficiency Ratings

The efficiency rating of a central air conditioning unit, commonly measured by the Seasonal Energy Efficiency Ratio (SEER), greatly affects both the initial cost and long-term operating costs.

According to the US Department of Energy (DOE), the minimum SEER ratings for central air conditioners increased to 14 SEER in the northern U.S. and 15 SEER in the southern U.S. in 2023.

Units with higher SEER ratings tend to be more expensive upfront, but their improved efficiency can lead to significant savings on energy bills and a reduced environmental footprint over time.

• SEER RatingAverage Unit Cost
• 14$2,700
• 15$3,500
• 16$4,100
• 17$4,900
• 18$5,500
• 19$6,200
• 20$6,950

Brand

The cost of a central air conditioning unit can vary between brands due to differences in quality, reputation, and features.

Statista reported that Carrier, based in the United States, was the largest company worldwide in the plumbing, heating, and air conditioning installation industry in 2022.

Here’s a cost breakdown of some well-known brands for a standard efficiency 2.5-ton central AC unit:

• AC BrandPrice of the AC
• Coleman$1,775
• York$1,800
• Rheem$1,975
• American Standard$2,300
• Carrier$2,625
• Lennox$2,700
• Trane$3,000

Labor

The labor cost to install a central AC unit can vary based on location, the complexity of the installation, and the contractor’s experience.

Typically, HVAC contractors charge hourly rates ranging from $80 to $150. If the ductwork is already in place, installation typically takes around 8 hours, resulting in total labor costs of $640 to $1,200.

Keep in mind that prices can increase during busy seasons.

Hidden Costs in Your Estimate

When estimating the cost of a central air conditioning system, there are several “hidden costs” that you should be aware of:

• 

  Ductwork

  
  

  Ducts and vents allow the cooled air to flow through your home. If you already have ductwork, installing central air conditioning will cost less.

  However, if your home doesn’t have ductwork, the cost goes up significantly. Replacing old ductwork can make it even more expensive due to added labor and complexity.

  When figuring out the cost to install central air without existing ductwork, remember to include the cost of duct installation, which averages around $2000.

• 

  Pre-Installation Evaluation

  
  

  A pre-installation evaluation is a key step when installing central air conditioning. It lets an HVAC professional assess your home's current infrastructure to determine the right size and type of unit.

  This evaluation might also include an energy audit, which identifies ways to improve your home's energy efficiency, like sealing leaks or adding insulation.

  A thorough evaluation helps with accurate budgeting, proper planning, and avoiding unexpected expenses. It can save you money on energy bills, and future repairs, and boost the system's efficiency and lifespan.

  You can expect to pay at least $200 for this evaluation by a qualified HVAC technician.

• 

  Permits and Compliance

  
  

  Depending on your local building codes and regulations, you might need permits to install central air, which can add to the cost.

  Compliance with local codes can sometimes require additional work, further increasing the price.

• 

  Additional Features and Upgrades

  
  

  Optional features like smart thermostats, air purifiers, or noise reduction technology can enhance the functionality of your AC system but will add to the total cost.

• 

  Electrical Upgrades

  
  

  Installing a central AC unit often means making changes to your home's electrical system.

  This could involve upgrading the electrical panel to handle the increased load, running new wiring to the unit, and ensuring all connections meet safety standards.

  These electrical updates can add several hundred to several thousand dollars to the installation cost, depending on the complexity and the current state of your home’s electrical system.

• 

  Removal of Old System

  
  

  Removing an old system can add several thousand dollars to the new AC installation cost.

  Why, you may wonder?

  First, removing an old central air system involves labor, which increases the overall installation cost.

  If the old system's ductwork is outdated or incompatible with the new unit, it may need to be repaired or replaced.

  During the removal process, HVAC professionals might find additional repairs or upgrades necessary. This could include electrical system upgrades, thermostat replacements, or structural adjustments to fit the new unit.

  Additionally, disposing of the old system incurs costs, like recycling fees for refrigerants and other components.

How to Effectively Save Money on Central Air Installation?

You can save money on central air installation while ensuring you get an efficient system by implementing these tips:

• 

  Get Multiple Quotes

  You should get quotes from several HVAC contractors. This way, you can compare prices and services to make sure you're getting the best deal.

• 

  Consider Financing Options

  Look into financing options like home equity loans or personal loans. Some HVAC companies also have financing plans that can help make the initial cost easier to manage.

• 

  Perform Regular Maintenance

  Routine upkeep can prolong the lifespan of your unit and ensure it operates efficiently. Replace filters every month during the cooling season and get the system serviced twice a year to ensure it runs smoothly.

• 

  Install a Programmable Thermostat

  This can help you save on energy bills by adjusting the temperature when you’re not home, reducing the strain on your system and lowering energy costs​.

• 

  Optimize Installation Timing

  Installing your central air system during the off-season can sometimes result in lower installation costs as HVAC contractors may offer discounts during slower periods.

• 

  Utility Company Rebates

  Numerous utility providers offer rebates for the installation of energy-efficient HVAC systems. Check with your local utility provider to see if they have any rebates available for high-efficiency units.​

• 

  Federal and State Tax Credits

  Explore available federal and state tax incentives for enhancing your home's energy efficiency. The federal government often provides tax credits for installing energy-efficient HVAC systems, which can significantly offset the initial cost. You should check the latest IRS guidelines or consult a tax professional to understand what credits are currently available​.

Conclusion

Installing central air can be a big investment, costing between $3,600 and $8,200. While DIY-ing it might save money, it’s not advisable as it can void warranties, create safety hazards, and cause inefficiencies.

It’s best to hire a trusted local professional using the HomeBuddy tool to ensure efficient, safe, and reliable installation. This will save you time and minimize inconvenience.

Frequently Asked Questions