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 solid estimates for 2025:

HVAC Unit Costs – What is 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 

Typical Cost Breakdown Example – for a Mid-Range System:

Costs & Factors for HVAC system costs:

Cost Factors Explained 

1. Home Size & Layout:

•  Larger homes need more powerful systems → higher BTUs/tonnage.
• Two-story or irregular layouts may need zoning or multi-stage systems.

2. 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.

3. 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.

4. Brand & Features:

•  Premium brands cost more but often include better warranties and quieter operation.
• Features like variable-speed blowers, zoned controls, and smart connectivity raise costs.

5. 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.

6. 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.

7. 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.

Do You Need Your Ductwork Replaced?

If you are replacing your current air conditioning system, it’s pretty safe to assume that you already have ductwork. Ductwork is what delivers the conditioned air from your HVAC system throughout your home through vents. However, with time ductwork can lose its efficiency or may need to be altered to work with your new AC system. New or updated ductwork installation can tack on an additional cost anywhere from $3,000 to $5,000 depending on the level of difficulty to install or alter.

What are the financing options for a new HVAC System?