Understanding the Factors That Influence Air Conditioning Installation Costs

by | Jan 10, 2024 | HVAC

Is air conditioning installation on your bucket list? According to the U.S. Census data, over 44% of U.S. housing was constructed before 1970. With the average lifespan of an air conditioning system being 15-20 years, replacement is inevitable due to aging.

Having a functional air conditioning unit is essential to ensuring comfort during the blazing summer months. So, if you’re seeking a new air conditioning system to replace your aging indoor unit, consider professional air conditioning service and repair. This guarantees a safe and efficient installation.

Although the cost of setting up a new AC unit can be a bit much, smart decisions can help you save money. This post will delve into common factors influencing air conditioning installation costs. Stay tuned!

7 Factors that Affect Air Conditioning Installation Cost

The cost of air conditioning installation can vary based on several factors. Here are six key elements that can impact the overall expense:

Type of Air Conditioning Unit

Air conditioners are manufactured in a broad range of shapes, sizes, cooling capabilities, and energy-efficient ratings. 

Therefore, choosing a split system air conditioner or a central air conditioning unit will significantly affect the overall installation cost. It includes the cost of the new air conditioner, electrical connections, and professional installation fee.

The most commonly used indoor and outdoor units are ducted split systems, portable air conditioners, heat pumps, and central air conditioners. Most Holly Hill heating and air conditioning companies provide installation services to suit your needs and budget.

Moreover, some companies offer wonderful discounts on installing air conditioners in multiple rooms. They will also guide you in selecting the right AC unit for your place.

Equipment Size and Cooling Capacity

When choosing the size of air conditioning units, it’s important to understand that bigger does not always mean better. You must think beyond its physical size; the size of your AC unit mainly refers to its cooling capacity. 

The bigger the unit, the higher the equipment cost due to inadequate cooling capacities for the intended space. On the other hand, if you select an undersized AC unit with insufficient cooling capabilities, it may run for an extended period to generate cold air. This leads to a spike in monthly energy bills and inefficient cooling.

Moreover, an oversized air conditioner with powerful cooling capacities will produce cooler air quickly. This can cause difficulties in eliminating the necessary indoor humidity, causing irregular wear and tear and potentially resulting in system breakdown.

Therefore, it’s strongly recommended to hire a professional specializing in providing the best air conditioning installation services. They will conduct a thorough inspection of your space and recommend a unit of the correct size. 

Seasonal Energy Efficiency Ratio (SEER) Rating

The SEER rating is an important factor that helps in distinguishing heating and air conditioning units. It is a parameter that defines an HVAC unit’s efficiency by assessing total energy input and cooling output. The higher the SEER value, the higher the efficiency.

Furthermore, units with greater energy efficiency come with higher initial costs. Choose air conditioners that focus on operational efficiency and energy savings. They are more economically effective in the long run because lower energy bills balance the upfront cost. 

Additional Installations

Apart from the cost of your air conditioner, factors influencing AC installation costs may include add-ons, such as an additional power supply source. 

Homeowners looking for enhanced benefits from their indoor unit may invest in extras like UV air purifiers and humidity control systems alongside the air conditioner.

While these enhancements improve indoor air quality, they also contribute to extra HVAC installation costs. It includes the system costs, additional connecting parts, installation fees, and other items necessary to install diverse AC components.

Therefore, hiring the best air conditioning service and repair company is always a wise choice to ensure a seamless installation process.

Ductwork, Vents, and Returns

Additional cost considerations arise based on the condition of the existing ductwork in your house. If a new ductwork installation is essential, the overall cost of your outdoor unit installation will eventually increase.

Moreover, the cost of ductwork installation is influenced by various factors. It includes the size of the space, the amount of work required for effective cooling, and the complexity of the ductwork in alignment with your home’s interiors.

To avoid any installation complications, our expert AC installers ensure everything is precise and accurate throughout the installation process.

Controls and Zones

Controls and zones also influence the air conditioning installation costs, especially in larger spaces with varied cooling needs for several rooms. For efficient cooling, multiple-zone air conditioners are preferable.

Innovations in HVAC technology, like wireless thermostats, offer customers extra control over heating and cooling systems. These technical innovations offer remote access. Moreover, the higher the need for zones and controls, the higher the HVAC installation cost. 

Warranty Considerations

Generally, manufacturers offer warranties for their heating and air conditioning units. However, the terms and coverage vary. Top-class models and brands may provide longer warranty periods or more extensive protection. This will be reflected in the installation cost.

When setting prices for installation services, AC manufacturers should factor in additional administrative work and potential future service requirements.


The cost of AC installation can be influenced by various factors, as mentioned above. The type of air conditioner you choose is a key determinant, as different sizes and models offer varied prices. In addition to these elements, brand reputation, quality, and features are also considered. Ductwork and ventilation also play a vital role in determining overall installation expenses. If your home requires extensive ductwork repairs, it will escalate costs. 

Therefore, conducting a pre-installation home assessment by a professional is strongly recommended before AC installation. At Koontz Heating and Air, we help identify potential issues or requirements that may affect the installation process and associated costs. Contact us and book your home assessment appointment today.