If you’ve been wondering just how much a good investment for your home’s new air conditioner is in 2024, you’ve come to the right place. In this post, you’ll find everything you need to know about typical AC costs for different air conditioner types and brands, home sizes, and efficiency level, plus some extra information on financing options, so that you can make a well-informed purchase decision when you finally get your new AC.

But before that, be sure to check out our article on some common causes to AC issues or breakdowns, just in case you only need to repair your old AC instead of splurging on a new system. If you’re looking for a reliable HVAC company in West Michigan to repair your broken AC, don’t forget to check out our AC tune-up and maintenance page and schedule an appointment with us. Still think you need a new AC unit? Read on because we’ll be diving deeper into the costs of a new air conditioner in 2024!

How Much Should You Expect to Pay for a New AC in 2024?

Your new AC cost will depend on factors such as your unit’s capacity and efficiency, your house size, and the labor costs associated with installing your new air conditioner. Generally, the total costs for a new air conditioner unit can run from about $3,000 to as high as $15,000 in 2024, making it a substantial financial commitment. In a residential setting specifically, the average cost for a new AC unit installation is about $8,500. Your final price ticket is also going to depend on the type of AC you’re going for, each having their own technological advantages and disadvantages. Here’s a concise breakdown of what you might expect to spend on your home’s new AC unit based on the category of unit you choose:

Keep in mind that these figures are estimates and may vary based on specific installation requirements, local labor rates, and additional modifications to your home’s existing HVAC system. For the most accurate estimate, we recommend consulting with HVAC pros who can assess your home’s unique needs.

Overview of Key Factors Influencing AC Cost

AC capacity: The size and output capability of the AC unit should be matched to the cooling demands of your home for efficient operation.

AC efficiency: The unit’s efficiency, often measured by the SEER (Seasonal Energy Efficiency Ratio) rating, directly impacts both the upfront cost and long-term expenses.

Size of your house: The larger your home is, means more powerful AC unit required to cool your home.

Installation labor costs: The expertise of professional installation services ensures optimal performance of your AC unit, with costs varying based on the project’s scope.

Breakdown of Cost by Type of AC Unit

The type of AC you should get depends on your cooling requirements. You might not need to get a central air conditioning system if you’re only trying to cool a small section of your house. By the same token, it wouldn’t be prudent to get a portable AC if you’re trying to cool down your entire house. And different types of air conditioners have different price tags. Here’s a list of cost estimates for each AC type, organized from the least expensive to the most expensive:

Central Air Conditioner Unit Sizes

Finding the right AC unit size for your home should definitely be the first thing that comes to your mind. As a rule of thumb, you will need about 20 BTUs for each square foot. Here are some manual j load calculations for common home sizes. Here are some of the BTUs requirement for cooling your home:

500 to 600 square feet: 12,000 to 14,000 BTUs

600 to 1000 square feet: 14,000 to 18,000 BTUs

1,000 to 1,200 square feet: 18,000 to 21,000 BTUs

1,200 to 1,500 square feet: 21,000 to 24,000 BTUs

1,500 to 2,000 square feet: 24,000 to 30,000 BTUs

2,000 to 2,500 square feet: 30,000 to 34,000 BTUs

2,500+ square feet: 34,000+ BTUs

Choosing between single-stage and two-stage central air conditioners involves considering your climate, home size, and desired comfort level. While single-stage units might be more cost-effective initially, two-stage systems can provide enhanced comfort and efficiency, proving economical in the long run.

Ductless Mini-Split Systems

Ideal for homes without ductwork or for targeted cooling needs, with costs of ductless mini-split units ranges from $1,900 to $15,000 based on system capacity and the number of zones.

Heat Pumps

Versatile for both cooling and heating, particularly in mild climates, with an average heat pump cost of $4,500 to $8,000. They offer long-term savings through energy efficiency.

Window and Portable Units

Cost-effective for cooling smaller spaces or single rooms, an average window is priced between $200 to $600 for window units and $250 to $700 for portable models.

RELATED: Best Types of Air Conditioner for Your Home: Choose the Right AC for Your Home

AC unit Cost by Brand

Navigating through different types of AC brands can be overwhelming, each brand has different features. Below, we’ve broken down what you might expect when investing for a central AC unit from some of the known brands in the market, keep in mind that these figures does not include installation cost. An AC unit sticker price is only a small part of your journey when purchasing a new AC unit:

Emphasizing Efficiency: The Role of SEER Ratings

Long-term Savings: High-efficiency AC units, indicated by a higher SEER (Seasonal Energy Efficiency Ratio) rating, consume less energy. While these units come with a higher upfront cost, they can lead to substantial savings on your energy bills over time.

Optimal SEER Rating: Understanding the right SEER rating for your home depends on your geographic location, home size, and usage patterns. As a general rule, look for units with a SEER rating of 15 or higher for the best balance between initial investment and long-term savings.

Environmental Impact: Besides financial savings, higher efficiency units have a lesser environmental impact due to reduced energy consumption.

Learn more about your local utility rebates on the Department of Environment, Great Lakes, and Energy page.

Navigating Financing Options

Seasonal discounts: Keep a look out for AC unit promos. Typically, when demand is lower during off-seasons such as fall or spring, HVAC companies usually slash prices to maintain sales.

Home equity loans and HELOCs: For homeowners with equity in their homes, these loans can give lower interest rates than personal loans. A home equity loan offers a lump sum, while a Home Equity Line of Credit (HELOC) provides a credit line to draw from as needed.

Special financing programs: Some HVAC contractors partner with financial institutions to offer special financing terms for AC installations, such as deferred interest periods or reduced APR. These can be valuable options for managing the cost without dipping into savings.

Energy-efficient mortgages (EEMs): For those buying or refinancing their home, an EEM allows borrowers to finance cost-effective, energy-saving measures as part of the mortgage, potentially enabling a larger loan amount to cover the AC replacement.

Keep up with AC maintenance: Typically, having an AC tune-up for your system once a year is best practice. This usually includes filter changes, cleaning coils, and electrical inspections.Learn and Explore financing options for your AC Installation through Michigan Saves.

Easy Way to Finance Your Air Conditioning Investments

There are numerous options available to you if you wish to pay for your new air conditioner without forking out a fortune for one. Another alternative is to pay the remaining sum with financing and pay a portion with cash or a cheque as down-payment.

To fit your needs and lifestyle, Peak Heating and Cooling offers a range of financing/payment plan options for your new AC system installation.

The Verdict

Navigating the maze of air conditioning replacement or installation can feel overwhelming. At Peak Heating and Cooling, we believe in demystifying the process, making it not just transparent but also empowering for you. Our approach goes beyond the traditional estimate; it’s about creating a partnership for your home’s climate comfort and energy efficiency.