HVAC Installation Costs: Do You Even Know What You’re Paying For?

Last Revised: 12/13/2024

Are you searching for a reputable HVAC installation company that won’t break the bank? Have you already gotten a few quotes and are wondering why some are higher than others? 

Few things are as stressful as an unexpected home expense, and comparing system replacement options or installation quotes can add to that stress. You may only purchase a new furnace, boiler, or AC system once or twice, so being vigilant is paramount.  

There are tons of resources out there that can help you understand the specific costs of a new system as you choose the right one for your home. There’s even info available to help you assess one HVAC company from the next.  

• 7 Factors That Influence an HVAC System’s Installation Price 

• HVAC Installation Price vs. Quality: Which Matters More? 

• 4 Common Mistakes To Avoid When Choosing Your HVAC Company 

But there’s one stand-out question that could linger over your heating or cooling system replacement: do you know what you’re paying for? If you’re doing your homework before making this investment, you’ll want to answer this chief question. 

At Mattioni, we’ve helped thousands of homeowners make informed choices about heating and cooling system installations for over 75 years. In this article, you’ll discover where your money goes when you hire an HVAC company, giving you seldom-discussed information to help you choose the best fit for your needs. 

We’ll break down your quote into costs like system components, labor, warranties, and more. After reading this, you’ll be equipped to make a confident decision based not only on price but also on quality of service. 

Where Does Your Money Go When You Hire an HVAC Installation Company? 

This is a comprehensive list of where your money goes when you buy a heating or cooling system and install it with a local service provider. 

1. What Does the HVAC System Cost? 

The heating or cooling system itself makes up most of your installation quote. No matter which type of system (furnace, boiler, heat pump, central AC system, or mini split), the equipment makes up the lion’s share of any pricing estimate you’ll receive. 

The type of system and efficiency rating are two major cost factors, however there are several others. For detailed information on what can sway the costs of a heating or cooling system up or down – check out this article. There are a few different strategies to choose a system that fits your budget. 

Be sure to balance your short-term budget with long-term savings, particularly when it comes to opting into a high-efficiency system or not. ENERGY-STAR certified systems offer savings on your monthly utility bills but come at a higher installation cost. Talk with an HVAC pro about which budgeting strategy makes sense for you.  

Let’s keep things moving and look at where else your money goes when you hire an installation company. 

2. How Labor Costs Reflect HVAC Expertise 

It goes without saying that when you hire an HVAC professional, you’re paying for their time. The value of an HVAC installation crew’s time is directly tied to their level of training, experience, and expertise. Like in any profession, as an HVAC professional becomes more seasoned, their cost of services (usually their hourly rate) increases to reflect their service quality. 

When we’re talking about a heating or cooling system installation, there are a few reasons why you should value the experience of your installation crew. First and foremost, your new system will be installed properly with all necessary considerations if it’s being installed by someone who knows exactly what they’re doing. 

There’s much more that goes into an HVAC installation, compared to other household appliances – check out this article for more information. 

Second, an experienced installation crew will be able to install your system faster than someone with less knowledge. This can bring the total number of labor hours down, which will be reflected in costs. 

The cost of the system and labor costs make up most of your installation quote, however other expenses may still apply. 

3. What Additional HVAC Installation Costs to Expect 

During your in-home consultation, make sure your HVAC professional can briefly explore your home to get a sense of any additional materials that may be needed or other complexities that the installation crew may run into. This will allow your quote to include these costs, and there will be no surprises on the day of installation. 

These extra expenses can come from: 

• Refrigerant linesets 

• Ductwork updates or modifications 

• Electrical wiring 

• Attic Installations 

• Limited access to the jobsite 

Your home’s system replacement may or may not include any of these additional expenses, which could show up in your quote. Don’t be afraid to ask your HVAC pro directly about ensuring no additional expenses pop up on the day of installation, and that your quote is holistic in including any of these costs. 

4. Technology Upgrades: Smart Thermostats 

Modern smart thermostats can revolutionize your approach to home temperature management. Features like geo-fencing, predictive settings, and energy reports have enhanced home comfort and energy efficiency.  

There are many reasons to upgrade to a smart thermostat, however, doing so will add another sub-total to your heating or cooling system installation. A smart thermostat typically costs a few hundred dollars, but for many homeowners, it’s a valuable investment. 

• Choosing the Perfect Smart Thermostat 

5. Warranties May be Included or an Additional Charge 

HVAC system warranties can vary significantly in their cost and coverage. Many manufacturers show their confidence in their equipment by offering warranties free with the system. In fact, some may even offer lifetime warranties for specific parts like compressors and heat exchangers – meaning that if a covered part fails, it will be replaced free of charge for the lifetime of the equipment. 

Warranties can be a financial lifeline down the road, so talking with your HVAC professional about additional warranties could be a savvy move.  

The impact on total installation costs varies based on warranty details, however, it could be an asset that pays for itself in the long run. 

If you’ve received a few different quotes in different price ballparks, you’ll want to consider the next few factors and what they mean for you. 

6. Employee Training Programs 

High-performing HVAC companies are continually investing in their new employees with training programs to continue to provide high-quality services in the future. In other words, a higher installation price may be because that service provider is putting that money back into the future of their workforce. 

At first glance this might seem like an unnecessary expense, however, it signals that this installation company has highly trained professionals working on your home’s HVAC systems. Heating and cooling system installations require much more knowledge than our average appliance, so ensuring that yours is hooked up properly could be a big deal. 

Improper installations can lead to performance and efficiency issues, and even lead to premature failures and a shortened system lifespan. Companies that continually invest in their people offer positive service quality and homeowner satisfaction. 

7. Administrative & Resource Management Expenses 

Similarly, an HVAC installation company that consistently delivers quality services and positive customer experiences will need to manage business costs and its resources. For example, some companies may have a warehouse fully stocked with HVAC equipment, parts, and tools, while others may need to order specific parts to complete your installation, slowing the process. 

Administrative and resource management expenses allow installation crews to be sent to you promptly with the right tools to do the job right the first time.  

It’s worth comparing how different HVAC companies operate with their availability, customer service, and professionalism. Don’t undervalue the experience you’ll receive when hiring a heating or cooling system installation company. The industry has a wide range of service providers, and ensuring you work with one that offers a positive experience could be well worth it. 

Making the Right HVAC Installation Choice 

Navigating HVAC installation costs can feel overwhelming, especially with so many factors impacting the price. From the system itself and labor hours to additional components, smart thermostats, warranties, and a company’s investment in training and resource management, there’s a spectrum of elements that contribute to your overall quote. 

Understanding where your money goes isn’t just about the numbers – it’s about ensuring you get quality, efficiency, and long-term value from your investment. With the insights shared here in this article, you’re better equipped to evaluate quotes, compare companies, and make an informed decision that fits your budget and needs. 

If you’re ready to take the next steps, start by exploring the HVAC companies in your area with positive online reputations. Look for transparency, expertise, and customer-centric services to ensure a positive outcome for you and your home. 

For more guidance on choosing the right system or company, check out our Learning Center or contact Mattioni today at (610) 400-8510. You can also schedule a free in-home consultation directly online. Let us help you make an investment in your home’s future comfort that you can feel confident about.