If your home is over 12 years old, you may be thinking about the future of your HVAC system and researching the costs associated with a new system in California. We’ll share with you some of the factors involved in the costs for a new system. While each install is unique, there are a variety of known factors to help you as you begin to think about this investment.
Perfect Star offers 0% financing on a number of projects and we’d be glad to meet you and provide an estimate on the system that is right for you and for your budget.
One of our Stars -Raymond, sharing some more efficient, money saving options with clients.
The average cost for a complete high-efficiency HVAC system (including both heating and cooling) in California can vary significantly based on factors like home size, system type, brand, SEER rating, ductwork needs, and installation complexity. However, here are some general investment estimates for 2025:
🔧 Average Cost Ranges (Installed)
| System Type | Low-End | Mid-Range | High-End |
| Split System (Gas + A/C) | $12,000 | $16,000 | $22,000+ |
| Heat Pump System | $14,000 | $18,000 | $25,000+ |
| Ductless Mini-Split (Multi-Zone) | $10,000 | $15,000 | $20,000+ |
🧾 What’s Usually Included:
- High-efficiency furnace or heat pump
- Air conditioner or combined unit
- Thermostat (often smart)
- Ductwork installation or modification (if needed)
- Permits, labor, and disposal of old system
- SEER 16+ for cooling and AFUE 95%+ for heating
💡 Cost Drivers:
- Home size (e.g., 2,000 sq. ft. vs. 3,500+ sq. ft.)
- Ductwork condition (add $2,000–$6,000 if new)
- Brand (Premium Brands will have higher prices)
- Efficiency ratings (SEER, AFUE, HSPF)
- Rebates & tax credits (Inflation Reduction Act, utility incentives)
Typical Cost Breakdown (Mid-Range System ~ $16,000)
| Component | Estimated Cost |
| Equipment (Furnace + A/C or Heat Pump) | $6,000–$9,000 |
| Labor (Installation) | $3,000–$5,000 |
| Ductwork (New or Replacement) | $2,000–$6,000 |
| Thermostat (Smart) | $200–$600 |
| Permits & Inspections | $500–$1,000 |
| Disposal of Old System | $300–$700 |
| Miscellaneous (pads, lines, etc.) | $300–$700 |
| TOTAL ESTIMATE | $14,000–$22,000+ |
🔍 Cost Factors Explained
Home Size & Layout:
Larger homes need more powerful systems → higher BTUs/tonnage.
Two-story or irregular layouts may need zoning or multi-stage systems.
System Type:
Heat pumps cost more upfront but save more in mild climates.
Gas furnace + A/C combos may be cheaper but less efficient year-round.
Efficiency Ratings:
Higher SEER (Seasonal Energy Efficiency Ratio) and AFUE (Annual Fuel Utilization Efficiency) = higher cost but better long-term savings.
Look for SEER 16–20+ and AFUE 95%+ for California rebate eligibility.
Brand & Features:
Premium brands (Trane, Lennox, Carrier) cost more but often include better warranties and quieter operation.
Features like variable-speed blowers, zoned controls, and smart connectivity raise costs.
Ductwork:
If existing ducts are old, leaky, or poorly sized, replacing or repairing them is essential—and costly.
Ductless options eliminate this, but individual indoor units add their own costs.
Installation Complexity:
Crawl spaces, tight attics, or multi-day installs with electrical upgrades increase labor hours.
Retrofitting older homes may require structural or electrical work.
Rebates & Incentives:
Federal: Up to $2,000 under the Inflation Reduction Act for heat pumps.
California: Utility rebates vary ($500–$3,000+).
These can offset costs significantly if your system qualifies.
Some information in this article was generated with the assistance of experienced HVAC industry experts and enhanced by ChatGPT, an AI model developed by OpenAI (June 2025)
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