Air Conditioner Cost: Installation or Replacement

Indianapolis summers get hot fast. You know those 90+ degree days where you’ve soaked through your shirt by afternoon. Central AC makes Indiana summers a lot more livable. But sadly, most folks take air conditioners for granted until they’re not working right. When they aren’t working right, homeowners often need to make quick decisions without much time for research. At HomeSense, we want homeowners to have the information they need to make good decisions for their home. An important first step toward that end is to have a good grasp on air conditioner cost.

So what should these units cost when it gets down to it?

Pricing:

There is a great range of pricing when estimating an air conditioner cost. The three primary variables are:

• Brand
• Efficiency
• Size

Brand

We are a Daikin dealer, so we always include that brand within our proposals. Daikin is the world’s largest manufacturer of air conditioning equipment, with a slate of brands to fit any customer’s needs. With their years of industry experience and innovation, Daikin makes reliable equipment. In our estimates, you’ll see two Daikin brands: Goodman and Daikin. If you are looking at a mini-split unit, we may also offer Mitsubishi. These varied brands will also bring varied prices. Your choice will have more to do with the quality you are looking for and the length of time you foresee being in your current home.

Efficiency

When it come to efficiency, air conditioner cost is fairly straightforward: the greater the efficiency, the higher the price. Based upon the air conditioning systems we replace in Indianapolis, we usually see an increase in efficiency with a new unit. One of the main reasons that is the case is because the EPA has increased the minimum efficiencies that manufacturers can make. The current minimum efficiency in Indiana is 13 SEER (Seasonal Energy Efficiency Ratio) for air conditioners and 14 SEER for heat pumps. For each SEER increase we estimate that home owners see a 6% increase in operating efficiency. With systems that increase up above 20 SEER, prices can nearly double from the 13 SEER options. What we often do for home owners is help estimate the cost vs. benefit of additional SEER. Then they can estimate where the additional efficiency will have a financial benefit.

Size

For system sizing, we recommend a load calculation be done on your home. A load calculation takes into account variables like square footage, windows, insulation, among other factors. This determines what amount of cooling capacity is needed to maintain a comfortable temperature. In sizing a system, bigger is not better. Correct sizing is better. This is where an experienced contractor can help determine the right size for your home. If you think your current system is undersized, that could be the case. But often, comfort issues come down to duct design and insulation.

Air Conditioner Cost Ranges

Using the above variables, below is a range based upon a normal installation with many bells and whistles:

2 ton 13 SEER Air Conditioner & Coil including labor, taxes, warranty: $3,000 – $4,000

3 ton, 15 SEER Air Conditioner & Coil including labor, taxes, warranty: $4,500 – $6,000

5 ton, 19 SEER Air Conditioner & Coil, including labor, taxes, warranty: $10,000 – $12,000

Every home has unique variables that require different materials and labor for a quality air conditioning installation. Hopefully this helps in your selection of the right vendor for your work. If we can help in any way, or you’d like to get an ac repair cost estimate from us, call or text us at 317-203-8149.

Posted in: Air Conditioning