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The Cost of AC Installation: What to Expect and How to Budget for It

Noland Heating & Air a commercial HVAC company in Searcy, AR
The Cost of AC Installation: What to Expect and How to Budget for It - Female finger pressing air conditioner button on wall.

Installing a new air conditioning (AC) system is a significant investment for any homeowner or business. However, understanding the cost of AC installation and how to budget it can help you plan accordingly and make informed decisions. In this blog post, we will discuss the cost of AC installation and what to expect during installation.

Factors Affecting AC Installation Costs

Several factors can influence the cost of AC installation. These include:

  • Size and capacity: The size and capacity of the AC unit required for your space will impact the cost. Larger spaces typically require more powerful and expensive units.
  • Efficiency rating: Higher efficiency-rated AC units tend to cost more upfront but can provide long-term energy savings, resulting in lower utility bills.
  • Ductwork modifications: If your existing ductwork is outdated or incompatible with the new AC system, modifications or replacements may be necessary, adding to the installation cost.
  • Additional components: The cost may also include additional components such as thermostats, air purifiers, or zoning systems, depending on your specific needs.
  • Labor and installation complexity: The complexity of the installation, accessibility of the installation area, and any required electrical or plumbing work can affect the overall cost.
Noland Heat & Air's HVAC Expert Servicing Mini Split AC System

Budgeting Tips for AC Installation

  • Research and obtain multiple quotes: Take the time to research and gather quotes from different AC installation providers. This will give you a better understanding of the average cost in your area and help you make an informed decision.
  • Consider long-term savings: Although high-efficiency AC units may have a higher upfront cost, they can provide significant long-term energy savings. Assess your budget and weigh the potential savings over the system’s lifespan.
  • Plan for contingencies: It’s advisable to allocate a contingency budget for any unforeseen issues or additional requirements during installation. This will help you be prepared for unexpected expenses without compromising the quality of the installation.
  • Explore financing options: If the upfront cost of AC installation exceeds your budget, consider financing options offered by AC installation companies. Many providers offer flexible payment plans or financing programs to help you manage the cost more effectively.

AC Installation Cost Breakdown

It’s important to understand the cost breakdown when budgeting for AC installation. On average, the cost of AC installation can range from $2,500 to $7,500 or more, depending on the factors mentioned earlier. Here’s a breakdown of the typical cost distribution:

Equipment cost: The cost of the AC unit itself can account for a significant portion of the overall cost. Higher-capacity or more energy-efficient units tend to be pricier. Selecting a unit that matches your space requirements and energy efficiency goals is crucial.

Labor cost: The labor cost includes the installation and any necessary modifications to the existing ductwork or electrical connections. Skilled HVAC technicians will ensure the system is installed correctly and optimally.

Additional component cost: Depending on your specific needs, there may be additional components required, such as programmable thermostats, air purifiers, or zoning systems. These additional features can enhance comfort and air quality but may add to the overall cost.

Permit and inspection fees: Local permits and inspections may be required for AC installation. These fees can vary depending on your location and are important to consider when budgeting for the installation.

What to Expect During AC Installation

  1. Site evaluation: A professional AC installation provider, such as Noland Heat And Air, will perform a thorough evaluation of your space to determine the most suitable AC unit size, placement, and any necessary modifications.
  2. Installation timeline: The duration of the installation process will vary depending on the project’s complexity. Discuss the estimated timeline with your chosen provider to clearly understand the expected duration.
  3. Permits and regulations: AC installation may require permits or adherence to local regulations. A reputable AC installation company will handle the necessary permits and ensure compliance with all applicable codes.
  4. Professional installation: Trained and certified technicians will install the AC system, ensuring proper connections, insulation, and testing for optimal performance.
  5. System demonstration: Upon completion, the AC installation team will demonstrate the newly installed system, including how to operate and maintain it.

When budgeting for AC installation, it’s crucial to consider the cost breakdown, including equipment, labor, additional components, permits, and ongoing maintenance. You can make informed decisions that align with your budget and long-term goals by researching multiple quotes, exploring energy efficiency incentives, and consulting with reputable AC installation companies like Noland Heat And Air.

A quality AC installation will provide comfort, energy efficiency, and peace of mind for years. Contact us today to learn more about our AC installation services and how we can assist you in achieving a cost-effective and reliable cooling solution. With Noland Heat And Air, you can expect top-notch service, experienced technicians, and a commitment to customer satisfaction throughout the AC installation process.


Our highly trained and expert technicians respond to HVAC calls from residents and businesses in Searcy, AR and the surrounding areas. See the complete list of our service areas below. If you cannot find your location, please get in touch, and we’ll find ways to extend our service to you.


HVAC Company Searcy, AR