A clean, efficient and hard-working HVAC system is essential for every home. While many people have a vague idea of what this type of system accomplishes, a thorough understanding of how it works and why it’s needed is handy to know when comparing prices.
Commercial HVAC systems are costly, complicated and built for heavy-duty action. As a business owner, you know you can’t live without such a system, but if the financial ramifications of replacing your old HVAC equipment are keeping you up at night, you need to learn more about what you’re getting yourself into.
Whether you own a building or manage facilities, you might wonder how the cost of a new commercial HVAC system impacts your bottom line. After all, your commercial HVAC system is critical to the operation of your business.
A quality HVAC system maintains a comfortable working environment and an inviting experience for customers. In some applications, properly functioning heating and cooling systems are critical for operations and production. The approximate cost of a new commercial HVAC system for your facility depends on several factors.
We’ll cover what impacts commercial HVAC system pricing and how you can keep commercial HVAC costs in check with an investment in preventive maintenance. A customized HVAC maintenance plan also catches small problems early and saves you the headache of an expensive breakdown. If your current HVAC system is older and failing to keep your business or building comfortable, you may need commercial HVAC installation services from Estes Services. Estes also offers HVAC repair services for commercial and residential properties at a price you can afford.
Running a business is no easy feat. There are a million pieces to juggle, and the last thing you need is shivering or sweating employees or customers. You need a reliable commercial HVAC system and a contractor who can help you every step of the way. Check out HVAC Breakdown and Repairs Services page which has everything you might need near you.
HVAC stands for heating, ventilation, and air conditioning. In both residential and commercial spaces, installing or repairing HVAC systems isn’t a DIY job. Commercial HVAC contractors and technicians need special licenses and expertise to keep the equipment safe and efficient. Like most major installations and renovations, the cost can vary widely depending on your contractor and many other factors.
What Is HVAC?
The term “HVAC” is an acronym that stands for Heating, Ventilation and Air Conditioning. To have a successful HVAC, air from both indoors and outdoors must be moved to control the living environment in a building.
HVAC systems help to keep your home at a controlled temperature so that you don’t freeze in the winter or melt in the summer. In addition to keeping the rooms at a specific temperature, HVAC systems also filter and clean the indoor air. This is particularly important for those who either have or may develop respiratory issues.
How Does HVAC Work?
Any type of system involves multiple steps that revolve around a pragmatic pattern. In this case, each step revolves around the building in which the HVAC system is used.
An HVAC system includes the furnace, thermostat, air conditioner and ductwork. The furnace uses gas or oil to heat the indoor space. This is generally found in either the attic or basement. An A/C is used to cool the air and usually sits outside the house. By using coolant liquid, it can reduce the temperature of indoor air. Through this process, it can then send hot air outside.
The ductwork and thermostat are generally thought of as the “transit system” for which the furnace and A/C work. The ductwork moves air throughout the entire building, while the thermostat allows you to control the temperature for indoor air.
Commercial HVAC Equipment
Equipment prices will vary based on the reputation and quality of the manufacturer, the heating and cooling capacity of the units and the technical details of the system’s functioning.
Commercial HVAC systems come in two categories: water-cooled and air-cooled. The former is less expensive, but the latter works more efficiently, especially if you purchase a variety of air-cooled system that uses a technology known as Variable Refrigerant Flow, or VRF for short. VRF systems cost more to both purchase and install but are so highly energy-efficient you’ll gain your original investment back through reduced energy costs in just a few years.
Of course, those long-term savings might not be as important to you if you expect to sell your business or move it to a new facility within five years or less. In this case, upfront costs will matter more, and a decently efficient water-cooled system might make more sense.
What’s the difference between commercial and residential HVAC?
Residential and commercial HVAC systems are totally different ballgames. While residential HVAC systems might change a little based on the size of a home, commercial HVAC systems will vary dramatically and will often be customized for each business. For example, a commercial HVAC system can either heat and cool a small local veterinary office or a massive convention centre with over two million square feet. Commercial systems are also more likely to include multiple thermostats to manage temperatures in different building areas.
That’s why the size and complexity of commercial units need to be flexible. Commercial units come in modules that are added or removed depending on how much cooling and heating is needed. A benefit of these modules is that a business can expand its heating and cooling system as the business grows. However, this modular system means commercial systems have a very different structure than residential systems and require specialists.
Another key difference is that commercial HVAC companies will often install the HVAC system on the roof. (A large, commercial system indoors would disrupt your business with its size and noise.) Installing the system on the roof also lets technicians access it easily for maintenance and repairs without disrupting your customers.
The last big difference between commercial and residential HVAC systems is the drainage systems, which funnels condensation away from your HVAC system. A commercial HVAC system needs multiple drainage pipes and collection pans, while residential systems usually just need one pan outside the house.
Why Is It Important To Have A Proper HVAC System?
A properly functioning HVAC system requires all parts to work correctly. Once this occurs, an HVAC system can regulate indoor temperatures for both homes and offices. However, depending on the building, an HVAC system may need to work harder. For example, heating or cooling a large, open indoor space will usually require a higher thermostat measurement or a hard-working HVAC system.
HVAC systems are important for weather extremes. In the summer, high temperatures can cause overheating for both people and equipment. During the winter season, HVAC systems are necessary to keep equipment from becoming frozen. When temperatures become too uncomfortable for most people to handle, equipment or housing structures can become damaged.
How Much Does a Commercial HVAC Unit Cost?
Installing a new commercial heating and air conditioning unit is an investment. A commercial HVAC unit is a complex machine that relies on multiple technologies and parts to function properly. Because of this complexity, costs depend on a variety of factors. To help you determine the variables that can affect HVAC pricing, let’s examine system components for existing buildings and new properties.
The HVAC installation costs in the chart below are based on a single residential unit, whereas two units will be about double the price. Labour costs typically make up 40% to 50% of the cost of the unit(s), which are included in this pricing.
There are three types of HVAC installation packages: the change-out, which includes a new air conditioner installation and a new heating system, the full installation, which includes all the HVAC equipment and ductwork; and the full install that includes additional features such as a zoning system.
The average cost of a new HVAC system can cost anywhere between $6,000 and $12,000 for a 1,000 sq ft. First, the building, but installation will be necessary. Depending on the type of HVAC system installed, the size of the unit, ductwork maintenance and climate, prices can vary.
As a rough breakdown: a typical furnace can cost between $2,000 and $6,000, while duct replacement can cost between $1,000 and $3,000.
Ductwork can cost a considerable amount of money, depending on how badly they need repair. Although most buildings are A/C compliant, ducts can get worn out over time. Existing ducts that need repairs may cause high energy bills. Ductwork should always be checked before buying an HVAC system.
The Seasonal Energy Efficiency Ratio is used as a rough guide to tell you how the value of your air conditioning unit will impact the installation cost. By measuring the unit’s efficiency, you can tell how high or low installation can be. For example, a “high-SEER” model may have a low installation fee, but the unit itself is often more expensive.
One of the main considerations to take into account when buying an HVAC system is the installation cost. Depending on the size of the building, installation can be different. Central air conditioners frequently come in a variety of sizes. The larger the air conditioner, the heftier the installation fee. It’s generally not a good idea to skimp on the HVAC system in order to save money. Without a fully functional HVAC system, repair costs will add up quickly. Looking for Commercial HVAC Melbourne? Look no further, Outline Air Melbourne has you covered.
Change-Out HVAC Installation Cost
- Cost: $4,820 – $9,350
- Job Time: 1 Day
Replacing your HVAC system costs between $4,820 and $9,350 and takes about a day to complete. A change-out is simply replacing out the main components of your HVAC system without any new ductwork. You should only get a change-out if your ductwork is in excellent condition.
Keep in mind, over 80% of HVAC installation jobs will require new ductwork. As a result, HVAC contractors will try and push change-outs because installing ductwork is the most time-consuming and challenging part of the job.
Cost to Install HVAC System with Ductwork
- Cost: $6,820 – $12,350
- Job Time: 3 – 5 Days
The cost to install an HVAC system with ductwork ranges from $6,820 – $12,350. Ductwork installation adds 2 to 4 days of labour and $2,000 to $3,000 to the total cost of your new system. If it’s time to replace your HVAC system, you should get ductwork replaced at the same time.
If the ductwork has been there as long as the system that just wore out, it’s a good bet the ductwork is in poor condition. New ductwork has no leaks, nor has it accumulated dust and allergens. New ductwork goes a long way toward lowering your energy bills.
HVAC Installation Cost with Add-Ons
- Cost: $13,000 – $17,000
- Job Time: 4 – 7 Days
A new HVAC installation with additional features can cost from $13,000 to $17,000 and take 4 to 7 days to complete. For example, installing a zoning system can add $2,300 to $3,500 to your HVAC system installation. Additional upgrades include a variable speed fan, a whole-house humidifier, or UV lighting.
HVAC Unit Costs
A new HVAC unit costs about $1,900 without installation for a 1,000-square-foot home and up to $5,600 for a 3,000-square-foot home. The cost of the HVAC unit will mostly depend on the size of your house and the brand and efficiency rating of the new unit.
What to Consider for HVAC Pricing?
One of the factors that determines how much your HVAC system will cost is the size of your home and its proportions. For example, a house that has lofted ceilings or open levels will require an AC system that commands higher prices when compared to a standard home with typical eight- to nine-foot ceilings and a regular shape like a square or rectangle.
Homes with larger square footage will also need a much larger HVAC system. Air conditioners have different outputs, which determine the amount of heat each unit is expected to extract from a home.
To explain this better, here’s an example. A single-ton AC unit extracts 12,000 BTUs. Another unit with thrice output – a three-ton AC – extracts as much as 36,000 BTUs.
Another factor that will impact the cost of the HVAC system is the existence of a duct system on your premises. Installing ductwork is expensive, so your best option is likely a ductless mini-split system if you don’t already have it in place. This is also a great option if your existing ductwork is damaged, worn out or under-insulated.
Is it time to replace your HVAC system? Here’s what you need to know before you work with your HVAC installer to determine the best unit for your needs. Keep in mind, now might be a good time to do a complete system upgrade.
- Commercial Heating and Air Conditioning Equipment
- Commercial HVAC systems come in two categories: air-cooled and water-cooled. Water-cooled HVAC units are more cost-effective options upfront. Air-cooled systems tend to cost more initially, but they are known to run more efficiently, which can save you money on energy costs. Equipment costs vary based on overall quality, heating and cooling capacity, and technical functions.
- HVAC Ductwork
- If you are replacing your HVAC unit, you might have to consider installing new ductwork simultaneously. Faulty or worn out ducts can impede the function of your new HVAC system, causing your unit to work harder and cost more to run. Consult with your HVAC contractor and see if your ducts need a thorough cleaning or complete replacement. Installing new ducts will increase the cost of your HVAC installation but will help with indoor air quality and energy efficiency.
- Commercial HVAC Controls
- HVAC control systems offer a range of controller types, from programmable thermostats to Smart thermostats. As a result, costs can vary widely. As a rule of thumb, the more technologically advanced the controller, the higher the initial investment. While the costs could be more upfront, programmable controllers are highly efficient and can reduce your building energy costs considerably.
Buying a fully functional HVAC system for both heating and cooling needs can range in price. Many factors go into deciding which type of HVAC unit to buy and how that will impact installation fees. A new commercial unit may run you a few thousand dollars, but installing it can be difficult. Depending on how large the building is and the type of space that it provides, HVAC units can be more or less expensive. A good way to calculate the overall cost of a unit is to assess the type of building that it will ultimately be used for. Check out our range of HVAC Design and Installation Services to help with your problem.
An HVAC system that you can depend on is always preferable. By choosing a system that works best with your house, you can regulate the indoor environment at an efficient cost. In addition, HVAC systems allow central heating and air conditioning throughout the entire building for maximum comfort and safety. Without a properly working HVAC unit, extreme temperatures can be dangerous.