Upgrading Your HVAC System? What To Consider

Keep your home cool and energy-efficient with an HVAC system upgrade

Parents and children on sofa at home
Photo: Halfpoint Images / Moment / Getty Images
Parents and children on sofa at home
Photo: Halfpoint Images / Moment / Getty Images
Elisa Greenberg
Written by Elisa Greenberg
Contributing Writer
Updated March 25, 2024

Highlights

  • Upgrading your HVAC system can cut your energy bill by $140 annually.

  • New, energy-efficient HVAC models use 30% to 50% less energy than older units.

  • You may also need to upgrade your ductwork, insulation, or thermostat for optimal performance.

  • Replacing your HVAC system costs $5,000 to $12,500.

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If your heating and cooling units are no longer performing at its peak, it’s time to upgrade your HVAC system. However, not all issues are due to your unit—you may also need to inspect your ductwork, insulation, and thermostat. Our guide will show you the best ways to upgrade your HVAC system with the help of an AC installer.

Common Reasons Your HVAC is Underperforming

When your HVAC stops blowing cool air throughout your home, it may be underperforming for several reasons, including age, ductwork issues, poor insulation, or a bad thermostat. Here are the reasons why your HVAC isn’t working correctly:  

HVAC System is Old

Most HVAC units last 10 to 30 years, so if your unit is over 10 years old, its poor performance is likely due to age, not a lack of HVAC maintenance. If your system is old, you might spend more on constant repairs and HVAC maintenance than if you replace the unit altogether. So, if you’re constantly paying a pro to come out and service your unit, it’s probably time to consider an upgrade. 

Unsealed Ductwork

You can expect to pay between $500 and $4,000 for air duct sealing. Unsealed ductwork is another common cause of an underperforming HVAC system. Over time, air ducts can loosen and become leaky from age, weather-related damage, or an animal infestation. Leaky air ducts make it difficult for warm and cool air to flow properly through your ducts and vents. These leaks cause discomfort in your home and increase your energy bills because your HVAC system is working harder to heat and cool your home. 

Poor Insulation

Even if you have a highly energy-efficient HVAC system, your home’s heating and air conditioning will still be inadequate if you have poor insulation. You can expect to pay between $1,065 and $2,600 to insulate your home, but you’ll save up to 20% on your heating and cooling costs and up to 10% on your annual energy bill. Insulating your home will ensure that your heating and air conditioning airflow won’t be lost to exterior leaks, making your home more comfortable while saving on energy costs.  

Bad Thermostat

A bad thermostat could be the culprit of your HVAC system’s malfunctions or slow-downs. Older, manual thermostats may provide poor performance for your system, making your heating and cooling inefficient and your electric bills higher.

Consider installing a smart thermostat. You’ll pay around $130 to $300 on average for a new smart thermostat, but you’ll be able to connect it to Wi-Fi, which allows you to control it from your smartphone or a smart hub in your home. In addition, smart thermostats use a sensor to automatically measure your home’s energy demand and adjust the heating and cooling to save energy and costs—around 10% to 15% per year on your annual energy expenses.

Factors to Consider When Upgrading Your HVAC System

Air conditioner unit
Photo: Victor / Adobe Stock

Proactively upgrading your HVAC system is a good idea so you don’t need to make big, expensive decisions during a summer heat wave. Here are factors to consider when upgrading your HVAC system:

Replace Both Heating and Cooling

Your HVAC system has an indoor gas furnace and an outdoor electric cooling unit. However, other options exist, such as an indoor heat pump or a mini-split vs. central air outdoor unit.

Either way, many HVAC pros recommend replacing both the indoor and outdoor systems at the same time. Not only will you save on labor costs by knocking out two jobs simultaneously, but you’ll also be upgrading both systems, which will help them work more efficiently together.  

Go For Energy Efficiency

Upgrading your HVAC unit to a more energy-efficient model can save you money on your heating and cooling bills. You may also be eligible for rebates and tax credits through local, state, or federal programs. For example, installing a certified ENERGY STAR heating and cooling system can cut your annual energy bill by $140. Review HVAC energy-efficiency ratings and install a system with an upgraded SEER rating than your current model.

Choose the Right Size

When choosing a new HVAC system, you’ll want to select the correct size for your home. For example, BTUs (British Thermal Units) measure how much energy your air conditioning system uses per hour. Having too few BTUs won’t effectively cool your home, but having too many BTUs will make your unit cycle more, wearing it down and causing more humidity. In fact, too much moisture in your home can cause mold growth, which can be hazardous. That’s why it’s a good idea to contact a licensed and insured local AC installer to determine the correct size unit for your home. 

Install Zones

Installing an HVAC zoning system in your home can cost between $1,500 and $8,500. Instead of having airflow through the same ductwork all at once, a zoned system allows you to allocate where the heating or cooling will go. Different sections of your home can have separate temperature settings, which helps your family to stay comfortable all year round.

Cost

When deciding whether to upgrade your current HVAC system, you’ll need to consider the cost of this major home decision. Replacing your HVAC system costs $5,000 to $12,500 or $7,500 on average. Of course, your total bill will vary based on the type of system, its size, labor costs in your area, and additional tasks needed to complete the installation. If you need to upgrade your ductwork or insulation in conjunction with the AC system, you can expect to pay more for these extra tasks.

How to Upgrade Your HVAC System

First, upgrading your HVAC system is not a DIY job. There are many components to consider, including the risk of electrical shock. Instead, we recommend hiring an air conditioner installer near you. An improper HVAC installation can reduce your system’s efficiency by 30%, so it’s essential to hire a professional who has the skills, tools, and experience to upgrade your system properly.

Here’s how to properly upgrade your HVAC system:

  • Get at least 3 quotes from licensed and insured installers in your area.

  • Have a pro thoroughly review the best HVAC options for you.

  • Keep up with annual HVAC maintenance. 

  • Don’t sleep on HVAC repairs.

  • Change your HVAC filter about every three months.

  • Hire an AC professional to clean your air ducts and install an in-duct air purifier. 

  • Install a variable speed air handler to keep your home quiet and comfortable.

  • Consider installing energy-efficient windows.

Frequently Asked Questions

Yes, it is worth upgrading your HVAC system, especially if your unit is over 10 years old or experiencing frequent malfunctions. You will enjoy greater energy efficiency and save on your annual energy bills, with new, modern HVAC systems using 30% to 50% less energy than older models. Upgrading your HVAC system is also a great way to embrace new technology, such as smart thermostats, lighting, fan speed, and humidity from your phone or tablet.

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Learn more about our contributor
Elisa Greenberg
Written by Elisa Greenberg
Contributing Writer
Elisa Greenberg is a professional content writer and communications specialist.
Elisa Greenberg is a professional content writer and communications specialist.
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