AC Replacement vs Repair: How to Make the Right Choice
When faced with the AC repair vs replacement dilemma, it’s best to consider your unit’s age, repair costs, reliability, and energy efficiency. Look at factors like the repair frequency and the availability of new system incentives when opting for AC replacement. While replacing comes with higher upfront costs, it provides greater reliability and avoids the cycle of repeated repairs. Repairing is a good option for minor issues to keep the system running longer, efficiently, but AC replacement becomes a logical solution for aging units or frequent breakdowns.
Mastering the AC Dilemma: Replacement vs. Repair Explained
Multiple breakdowns in a short period (two in one summer) signify your AC is trying to tell you something. A common decision point arises when an old, frequently breaking AC unit finally fails for good. If a constantly failing AC, with an expired warranty, no longer provides comfort, it’s time to consider replacement. However, if your AC is less than 10 years old and the warranty is still good, repairing is a cost-effective option. Kailey Air Systems provides a full range of HVAC installation, repairs, and maintenance services, ensuring comfort and efficiency for both homes and businesses.
| Did you know? Every year, Americans spend $14 billion on HVAC services and repairs. |
Is your AC on its last legs? Read below if you’re indecisive about repairs vs. replacement.
When AC Repairs Sound Like the Right Choice
Younger AC Units
Repairing an AC seems like a sound, cost-effective choice if your AC has a history of reliable performance, is less than 10 years old, and has had only a couple of minor issues so far.
Lower Repair Costs
If the issue is isolated to one component, such as a motor or capacitor, and the repair cost is significantly less than the total cost of replacement, you shouldn’t consider replacement.
Minor Issues
Minor problems like clogged filters or a failing capacitor can often be fixed with a relatively inexpensive repair. A successful repair can restore the system’s performance and extend its life.
Still Under Warranty
Check your AC’s warranty and see if you have a base warranty of 5 years or a longer warranty of 10 to 15 years. Repairing a unit that’s still under warranty is the most cost-effective option.
Increased Energy Bills
If you have noticed a sudden spike in energy bills, get your system checked by a licensed technician.
| Important fact! Starting in 2025, the EPA (Environmental Protection Agency) has implemented a Global Warming Potential (GWP) limit for refrigerants in new equipment, impacting replacement choices. E410A will now be phased out of new equipment. |
When to Consider AC Replacement
Aging Units
A system that is more than 10 years old is often nearing the end of its lifespan. To prevent unexpected breakdowns or component unavailability, you should consider AC replacement.
Higher Repair Costs
If a major repair, like a compressor failure, is needed in an older unit, the cost may exceed 50% of a new system’s price, making replacement the better option.
Frequent Repairs
Instead of putting money and time into fixing the older unit that is nearing or exceeding its lifespan, you may consider investing in a new unit.
Declining Efficiency
Older AC units will be less energy efficient, leading to higher electricity bills. A new energy-efficient model will significantly reduce your energy consumption and costs over time.
Environmental Concerns
New units use eco-friendly refrigerants and require less energy, reducing your carbon footprint. Your older unit may have low SEER ratings, making it below the current standards, and it might contain an older refrigerant, R-22 or R410A. Consider upgrading to a new model, as future units will use more environmentally friendly refrigerants.
| Fast fact: You may be eligible for a tax credit if you replace your AC unit with a more energy-efficient model. |
Your Stay Duration in the House
If you plan to stay in the same house for many more years, the replacement is the right choice for you as it will lower the energy bills right away, and the new unit will come with a warranty of more than 10 years, eliminating the need for frequent repairs.
Conclusion
When it comes to deciding between AC replacement vs. repairs dilemma, the right answer depends on your system’s age, its performance lately, the repair costs, and whether it’s under warranty or not. A system that is still under warranty may make repairs more affordable. Replacement becomes a logical choice for aging units with frequent breakdowns, demanding repeated repairs.
FAQs
What is the $5000 rule of repair vs. replacement?
Multiply the unit’s age by the estimated repair cost. If the product is over $5000, re[lacemnet is likely the better option.
How long does it take to replace an HVAC?
The replacement process usually takes two days to complete. That includes removing the old unit and installing the new one.
Does my home insurance policy cover AC replacement?
Home insurance policies typically do not cover AC replacement, as it is considered a maintenance issue, not an unexpected event.
What are the signs my AC is beyond repair?
If your system constantly breaks down, struggles to maintain temperature, produces strange noises or odors, and causes energy bills to spike, replacement is usually the best option.
Is AC replacement more cost-effective in the long run?
Yes, although the upfront cost is higher, replacing an old, inefficient unit lowers energy bills, reduces repair costs, improves comfort, and can qualify you for rebates or tax credits.