Technician is checking air conditioner
  • 24 Jan, 26

How Much Does It Cost To Replace A Commercial HVAC Unit?

If something feels off with your system, you may be wondering about the commercial HVAC unit costs? This guide covers everything you need to know about replacing a problematic commercial HVAC system.

Depending on the building type and unit specifications, the commercial HVAC unit cost replacement costs vary significantly. We will break down every factor that affects the cost, so you can be better prepared for your next upgrade.

From commercial RTU installation costs to VRF system replacements, this guide explains the most common options for commercial HVAC services in San Francisco.

 

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Average Cost to Replace a Commercial HVAC Unit

The cost of a commercial HVAC system is determined by building size, system type, required permits, and other factors.

A small-scale commercial mini-split system can start around $7,000, while more complex commercial rooftop HVAC units may cost $50,000 or more.

Therefore, you must first identify your needs before getting an accurate estimate. We will cover the common systems and building sizes below with a clear price range to help you plan your budget.

Air conditioner not cooling effectively? Call Chill Heating & Cooling to get a free quote for the top commercial HVAC Dublin, CA services.

Typical Cost Ranges by System Type

The commercial rooftop HVAC unit prices vary significantly depending on the system type you choose. More complex systems require additional labor hours, which increases installation costs. Chill Heating & Cooling provides professional commercial HVAC services in Alamo and surrounding areas.

Packaged rooftop units (RTU)

Small commercial rooftop HVAC unit prices usually start at $15,000. The larger, advanced ones go up to $50,000 and more.

Commercial HVAC rooftop units are the most common systems for American businesses. The labour fee is typically lower, as they are self-contained.

Split systems

For smaller commercial split systems, replacement costs typically start around $7,000. For larger systems, the cost can go up to $15,000. Split systems are usually less expensive and can be installed flexibly.

Variable Refrigerant Flow (VRF)

The cost of a VRF is usually calculated by square foot. The average commercial HVAC cost per square foot is between $15 to $34, depending on the air conditioner brands, features, and property types. A VRF system replacement is an energy-efficient strategy for firms to save as they scale up.

Ductless systems

The commercial HVAC replacement cost range is $4,000 to $20,000. It is a great choice to minimize energy loss. Ductless systems are widely recognized as an energy-efficient commercial HVAC solution.

Cost by Building Size / Type

Below is a general cost overview based on building size and property type.

Small offices

The commercial HVAC unit cost for small offices with a size of 500 to 4,000 sq ft will be on the lower end of the spectrum. It will range from $5,000 to $30,000. For a more accurate estimate, consult a local commercial HVAC service in Santa Clara, CA.

Retail & restaurants

Customer-facing businesses often need commercial HVAC rooftop units. Advanced features may also be necessary for emergency heating repair. The commercial rooftop HVAC units’ prices would be around $15,000 to $50,000.

Warehouses

Warehouses often range from 10,000 to 50,000 square feet or more. You need a strong, reliable system to improve logistics and prevent the spoiling of goods, adding to the rooftop ac unit installation cost. The commercial air conditioning unit prices will be $55,000 and more. The top-range systems may cost as much as $300,000.

Large commercial buildings

Large commercial buildings include office complexes, clubhouses, schools, etc. Due to the large number of tenants and users, a more sophisticated layout is necessary to maximize efficiency. The starting commercial HVAC installation cost for this property type is $100,000, with the high-end ones falling at $400,000 and more.

Property Type Cost Range
Small offices $5,000–$30,000+
Retail & restaurants $15,000–$50,000+
Warehouses $55,000–$300,000+
Large commercial buildings $100,000–$400,000+

 

 

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Factors That Affect Replacement Costs

Don’t be surprised to see a huge difference in commercial HVAC system costs for different businesses. There are many factors that can affect the installation cost.

1. System size & tonnage

The capacity is measured in tonnage, where 1 ton equals 12,000 BTUs of cooling per hour. For light commercial applications, one ton of cooling is typically required per 500 square feet, depending on usage and heat load. And for heavy commercial use, at least 1 ton per 300 sq ft is necessary. The larger the system, the more expensive the commercial HVAC maintenance and installation costs will be.

2. Efficiency level (SEER/IEER)

Systems with high HVAC efficiency ratings cost more to install but tend to be much cheaper to operate in the long run. Different states will have different requirements for the minimum efficiency standards.

3. Ductwork condition & modification needs

If commercial HVAC repair is required before the replacement, the upfront cost will increase. Before the installation, we will conduct a thorough examination of the property and determine the commercial ductwork installation cost.

4. Labor, access equipment (crane, rigging)

The cost of commercial HVAC systems includes labour. The longer the manhours, the pricier it gets.

5. Permits, compliance fees

For most systems, like commercial HVAC rooftop units, you will need to apply for permits. Commercial HVAC permits and fees should be included in the budget.

6. Electrical upgrades

To meet the operating requirements for newer models, you may need electrical upgrades for HVAC systems. It can increase the installation cost significantly.

7. System controls/zoning

Smart thermostats and advanced features like multi-zoning will increase the commercial HVAC cost per square foot. You can learn about the various smart features with a consultation before making a decision.

8. Disposal and refrigerant recovery

You cannot freely dispose of an old HVAC unit by law. You have to contact licensed professionals for it. A more complicated structure will lengthen the disposal time, which will increase the total commercial hvac installation cost.

Cost Breakdown: What You’re Actually Paying For

Let’s take a look at the detailed breakdown of what you’re actually paying for. It allows you to understand what a commercial HVAC system estimate entails.

Equipment

Specialized equipment is often required for commercial HVAC installations. For example, commercial HVAC rooftop units will need a crane for transportation. When you get a quote, it includes the price of transportation and additional equipment specific to your property type.

Labor & installation

Trained and licensed experts are here to guarantee your customers’ safety and business profits. Your commercial air conditioner cost for shopping malls includes the human resources needed to get the job done.

Removal & disposal

As mentioned, you cannot dispose of an air conditioner freely. Therefore, you should take this into account when planning an upgrade.

Permits & inspections

Our installation experts will advise and make sure you have the appropriate permits before the execution. We ensure compliance is met, so you do not have to worry about getting a fine.

Additional infrastructure costs

An emergency air conditioner repair will likely cost more than a scheduled replacement. It is because the technicians have to carry out the urgent repair work first and install a new system immediately to minimize downtime.

When Does Replacement Make Sense vs. Repair

Many HVAC professionals follow the 60% rule when deciding between repair and replacement. If the cost of repair exceeds 60% of the cost, it is time for an upgrade. Reach out to commercial AC repair San Jose, CA experts for personalized advice.

Age of the existing system

If the model is older than 10 years, a replacement will likely be more beneficial in the long run. It saves more energy and provides better comfort.

Repair costs vs replacement

Frequent commercial AC maintenance means the system is losing capacity. A new model can prevent frequent breakdowns.

Efficiency & downtime

Newer models tend to have fewer problems. You do not have to worry about unexpected shutdowns with proper maintenance.

ROI considerations

Compare the commercial HVAC system cost with the benefits and costs of running the current unit. If it shows satisfactory ROI, it’s a sign for an upgrade.

Tips to Control Replacement Costs

Follow these tips to control replacement costs. Contact commercial air conditioning service San Francisco, CA, contractors for a personalized package.

Plan ahead

Regular commercial and residential air conditioning services are extremely important in helping you budget and forecast replacement needs.

Get professional load calculations

Professional load calculations help to draw up a detailed plan that meets your budget. You can look at the pros and cons of different options and choose the one that fits your property best.

Consider high-efficiency models (rebates/incentives)

Although high-efficiency commercial rooftop units and other models will cost more to install, they provide more long-term benefits.

Bundle units / phased installation

Enjoy bundle deals of a phased installation to lower the total commercial HVAC installation cost. It reduces the burden to pay a huge sum during a specific period.

Understand Your Commercial HVAC Replacement Options

The final commercial HVAC unit cost depends on a number of factors. Craft your upgrade plan according to your preferences to meet your budget.

For the best results, work with a trusted provider. From commercial rooftop units to split system commercial HVAC services, a reliable professional will offer customized suggestions for you.

Contact Chill Heating & Cooling to schedule a commercial HVAC evaluation and receive an accurate replacement cost based on your building and system requirements.

 

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