Get the HVAC facts so that you aren’t left in the cold—even for a split second
There are multiple types of HVAC systems, including split systems and ductless systems.
Split systems are most common but require ductwork, which can be expensive to install.
To find the right system for your home, consider your climate, budget, and current HVAC setup.
You’ll also need to decide whether you want a system that runs on electricity, gas, or another type of fuel.
On average, installing a new HVAC system costs between $5,000 and $12,500.
If you’re tired of calling the technician to repair a problematic and outdated HVAC system, then it might be time to say farewell and invest in a new system. Whether your current HVAC system is puttering its last cycles or you’re hoping to reduce HVAC energy costs, this HVAC buying guide will help you select the best new system for your home.
The most common HVAC system is a standard split system, consisting of a central air conditioner system and a furnace, but there are other options that might suit you, your property, and your wallet better.
Let’s take a look at the four common types of HVAC systems.
| HVAC System Type | Best For |
|---|---|
| Split system | Most homes, especially in areas with extremely hot or cold temperatures |
| Ductless split system | People who want to control the temperature in individual rooms or houses without ductwork |
| Packaged system | Homes in warmer climates |
| Geothermal system | Anyone looking for a sustainable HVAC option |
A split system uses two parts to heat and cool your house. The part that cools your home is an outdoor AC unit, also called a condenser, which usually sits on a small concrete slab or other level foundation. The heating component is often a furnace that goes in your garage, basement, crawlspace, utility room, or a similar space.
Your air conditioner for this system uses refrigerant, evaporator coils, and air compressors to lower the air temperature before sending it through your home’s ducts and vents to cool the house. The air circulates because an air handler uses blower motors to push conditioned air through your ducts.
The heating unit in a standard split system is usually a gas furnace, though some homes use an oil furnace or boiler or heat pump split system. Some boilers also heat water for baseboard heat, in which case the boiler itself wouldn’t make use of your air handler at all.
A few split system setup options include:
An AC unit and a furnace: Works in any climate, though some regions require higher efficiency ratings than others
A heat pump with an air handler: Ideal for warmer climates that seldom go below freezing
A heat pump with a furnace: Ideal for very cold climates
Since a split system can use a combination of AC units, heat pumps, furnaces, and more, it’s a versatile option for homeowners who already have a duct system installed and just want to make upgrades. However, installing this type of system can easily cost over $25,000 and take weeks if you don’t already have ductwork behind your walls.
If your home doesn’t have air ducts installed behind the walls and under the floor, you might instead have a ductless split system installed. These systems contain a series of individual units in each room each with a small duct running to the exterior. These allow you to have the most control over specific temperatures throughout the house, but they do require having large units on your walls or ceiling that are visible.
For a ductless split system to work, you’ll need to install at least one outdoor unit (in addition to the indoor ones). These can sit on concrete slabs like a central air conditioner, or they can mount to your exterior walls. You may need multiple exterior units, depending on the size and how many interior units you have.
The lack of ducts behind your walls makes installing this system easier than most, especially if you don’t want to spend time and money installing a complex duct system.
As the name suggests, a packaged HVAC system is an all-in-one unit containing both heating and cooling elements. These units are installed outside, usually on the roof of a commercial building or a foundation slab outside a residential building.
Packaged systems make installation convenient, although they’re usually only viable if you already have ductwork installed.
It’s worth noting, though, that packaged systems are less common in residential homes, have a shorter lifespan than split systems, and aren’t as customizable as other options. As such, you’ll likely need to schedule HVAC service calls more often.
A geothermal HVAC system has high upfront costs that eventually even out due to how energy-efficient the system is. Geothermal units use a series of piping to transfer heat from deep in the ground to your home when it’s cold. When it’s hot outside, the system reverses the process, pulling cool air from deep in the ground and using it to cool your home’s interior.
Geothermal systems can either use a horizontal loop, which requires more land for the installation, or vertical loops, which may not be suitable based on your soil quality or proximity to bedrock.
Keep in mind, your yard will turn into an excavation site during the installation.
If you’re not sure which HVAC system will work best for you and your home, you can ask yourself the following questions to help highlight some important factors and narrow in on the right option.
There are many different types of HVAC systems. Each one has its pros and cons that could affect whether or not it’s right for you and your home.
For example, if you want to prioritize comfort in your living space over all else, you may want to go with a heat pump in a split HVAC system. If you’re looking for efficiency, few HVAC system types can beat a geothermal system. If you want ultimate customizability in different parts of your home, you should probably consider ductless split systems, which control temperature in each room individually.
Start by deciding which systems you think would work for you, your family, and your home layout, and go from there.
You should choose your new AC unit and heating system based on the climate in your area and how well the system performs in your extremes. A split system that uses a heat pump is going to be best in more extreme climates, while opting for a geothermal system might save you money over time in a more temperate climate that doesn’t demand an overly powerful HVAC setup.
If you have extreme winters but moderate summers, you could consider a furnace and standalone ductless systems in rooms you frequent most and want cool in the summer. If you have extreme summers and mild winters, using ductless systems with heat pumps can help keep high-traffic rooms cool while saving energy elsewhere, and they could provide the minimal heat you need in the winter as well.
Your location also determines the minimum SEER rating standards your new HVAC system will need. The north, south, and southwest all have slight differences in those standards, making it important that you know the minimum requirements for your area, regardless of the system you choose.
All new HVAC units are going to cost you quite a lot of money, both for the materials and the labor. However, some units cost twice as much as other units, so budget accordingly. On average, new HVAC systems cost between $5,000 and $12,500, with most people spending around $7,500.
We’ll include some average costs for the different kinds of HVAC systems in the table below.
| HVAC System Type | Average Installation Cost |
|---|---|
| Ductless Split System | $3,500 per indoor unit |
| Geothermal System | $14,500 |
| Packaged System | $10,000 |
| Traditional Split System | $8,000 |
If you want a unit that only cools with electricity, a packaged or split air conditioner might be right for you. If you want a cooling system that also heats with electricity (good for seasonal transitions), then a packaged, split air-source, or geothermal heat pump may be right for you.
When you install a traditional split system, you’ll be relying on gas or oil to power your furnace, which might not be desirable. For example, if you’re trying to reduce your carbon footprint or you have solar that provides the electricity you need for an all-electric system, then you may want to consider a setup that doesn’t rely on fossil fuels.
"It's worth spending a bit more money up front to get an HVAC system that is really efficient and reliable. High-efficiency heating will save money over time and decrease your impact on the environment."
— Yashar Mosaferi, President of Klondike AC, British Columbia, Canada
You should always consider the system you already have installed, as replacing it with the same type will usually be the most affordable and least invasive.
For example, if you don’t already have ductwork installed for central air or a forced hot air heating system, then you’ll likely spend about twice as much installing ducts if you want a ducted system installed. Your HVAC company will also need to tear down walls to install your ducts, which is extremely labor-intensive and time-consuming.
If you live on a small property, a geothermal system might be too large for your plot size, especially if your proximity to bedrock or groundwater prohibits a vertical geothermal loop. You may also have limited room on the sides or rear of your property for condensers for split systems or ductless systems, so yard size may restrict your options.
It’s a good idea to speak with an HVAC specialist to get an idea of which options may or may not be viable for your property.
Finally, consider how important a silent system is for you. If your furnace is located on the first floor, you may hear it kick on when you call for heat. Similarly, a ductless unit will make a bit of noise outside when the AC capacitor kicks the condenser on, but the wall-mounted unit will also make some noise when it’s blowing air. This could be an issue if you prefer a totally quiet living area or if you have very light sleepers in your home.
For minimal indoor noise, consider a packaged HVAC system or a geothermal system that keeps the noise outside.
Since picking the right HVAC system for your home is dependent on your region, landscaping, and personal preferences, speak with an HVAC company near you to help you make the best choice.
The right type of HVAC system will depend on several factors, including your climate, budget, preferences, and existing HVAC setup. For example, if you live in an area that experiences extreme weather, then a split system would likely be the best option. Or, if budget is a concern, consider installing a ductless system in just one room.
Most HVAC systems last between 10 and 20 years, with an average life span of 20 years. The individual components within an HVAC system have their own life expectancies as well. For instance, a furnace often lasts for 15 to 30 years, while a heat pump might need replacing after 10 to 15 years.
Fall and spring are the best times of year to purchase an air conditioner, furnace, or other HVAC components. In fact, by shopping during these periods, you could save 10% to 15% on an AC unit. For HVAC professionals, spring and fall are less busy than summer and winter, when extreme temperatures create an urgent demand for heating and cooling.
