Whether you live in a traditional single family home or modern townhouse, your heating, ventilation and cooling (HVAC) system is likely running non-stop. It keeps the house warm in winter and cool in summer. Your system needs to operate efficiently all year-round to ensure your continual comfort. Yet, many people have never even heard of HVAC. They are unaware of what installing such a system involves and how much the whole thing would cost. Answers, right this way.
Let’s start with a definition: HVAC stands for a heating, ventilation and cooling system. All homes are equipped with a heating system – we live in Canada after all! – but not all of them have A/C. In terms of cost, expect to pay between $8,500 and $20,000 for a central HVAC unit. Smaller units, wall-mounted heat pumps and air conditioners, can cost $4,000 or more.
How much does it cost to install a new HVAC system
The cost of installing a new heating, ventilation, and air conditioning system will depend on a few factors, such as what you are installing (type of system, with or without ducts, etc.), the size of your home, your location, and any additional add-ons or features.
The approximate cost to install an HVAC system in a new home are as follows:
Low-end $7,000 (electric baseboard heaters and wall-mounted air conditioning)
Medium range $10,000 (electric baseboard heaters and wall-mounted heat pump)
High-end $16,000 (central heat pump with heat recovery)
Installation with ventilation ducts
HVAC systems with ventilation ducts are priced by the capacity of the device (in tons). The average home (1,000–1,500 sq. ft.) usually requires a capacity of 2 to 3 tons, which ranges from $3,400 to $6,000. Please note that the price can be influenced by multiple factors, such as power and the condition of your home.
Installation without ventilation ducts
The cost of installing a ductless HVAC system is generally limited to the purchase and installation of the indoor and outdoor units. The final cost will depend on the model you choose, of course!
Installation with add-ons
If you are installing an HVAC system with add-ons, the costs will depend on the add-on. For instance, a whole-house humidifier typically runs $200 plus the cost of installation. A standard axial fan will run between $200 to $1200 plus installation, depending on the fan type and features. The most requested add-on, an air exchanger, varies between $2,500 and $3,500.
Thinking of renovating?
How much does it cost to replace an HVAC system
The cost to replace a HVAC system is generally comparable to the cost of installing a new one. The final price will depend on the type of system currently in the home and whether it meets Quebec Building Code standards. Installing a central heat pump, for example, may require the addition of ventilation ducts (approximately $6,500, excluding drywall).
How often should a HVAC system be replaced?
Most modern HVAC units last between 10-20 years, depending on the brand, quality of parts used and maintenance carried out over the years. Air conditioners and central heating units start to wear out after 10 years, compared to 20 years for electric baseboard heaters.
“Regular maintenance and cleaning of heating and cooling units are crucial to maximize their lifespan,” explains Tristan Lacelle, renovation advisor at RenoAssistance. “By removing dust, debris and other contaminants, we enhance performance and prevent overheating or costly breakdowns. Proper maintenance ensure a system operates at peak efficiency, reducing both energy consumption and utility bills. This contributes to improving indoor air quality, fostering a healthier environment for us and our loved ones.”
Grants available for changing a gas or oil system to an electric system
If your home is equipped with an old gas or oil-fired heating system, you may be eligible for certain grants to help you install an electric or natural gas HVAC system. In Ontario, Enbridge Gas offers qualifying customers a rebate of up to $250 for a new furnace, up to $1,000 for a new boiler and up to $400 for a new water heater. In Quebec, Énergir offers numerous rebates for the cost of installing boilers, furnaces, water heaters and smart thermostats. In addition, Hydro-Québec offers financing for certain heat pump models under the LogisVert program.
“The cheapest heating units may seem like a good deal at first but can end up costing more over time,” says Tristan Lacelle. “These units tend to be less efficient and energy-intensive, meaning they consume more energy to produce the same amount of heat. This translates to higher electricity or gas bills.”
Hybrid systems (oil and electricity)
Some homes may also be good candidates for hybrid systems. For instance, your heating could continue to be provided by oil, while your air conditioning could move to an electric source. This change is not as efficient or as clean as moving to a complete electric system or natural gas furnace, but it would provide a homeowner with some flexibility in terms of cost to update.
Price: central heat pump
The cost to buy and install a central heat pump typically ranges from $8,500 to $20,000. The price can vary depending on several factors, including brand, unit capacity and specifics of the installation.
Price: wall-mounted heat pump or wall-mounted air conditioner
The cost to install a wall-mounted air conditioner typically ranges from $3,360 to $4,200. The price will be slightly higher for a heat pump.
Price: air exchanger
Expect to pay between $2,500 and $3,500 for an air exchanger. There’s a wide range of models available on the market.
What are 6 factors that determine the cost of a HVAC system?
Several factors can influence the cost of an HVAC system. Here are a few key ones to consider.
1. Climate
The more extreme your climate, the better your system needs to be. For instance, residents in Northern Quebec would need a system with a quality furnace, while residents in Southern Ontario would want a system with a top-notch air conditioner.
2. Construction
Construction costs will vary depending on the amount of work needed, the current system, ductwork (if applicable), and the cost of labour in your area.
3. HVAC cost per ton
HVAC costs are generally between $1,700 and $2,000 per ton capacity for the ductwork alone. Installation and the system costs are extra.
4. Energy efficiency
In general, the better the energy efficiency, seasonal energy efficiency ratio (SEER), and cost efficiency, the more expensive the upfront system. SEER and cost efficiency are discussed in the sections that follow.
Energy efficiency is calculated by dividing the energy output by the energy input. For HVAC systems, we compare the cooling/heating power output to the number of watts consumed. Measurements are typically taken on the hottest day of the year for air conditioners and the coldest day of the year for furnaces. The higher the value, the more efficient the unit is at cooling or heating.
The Energy Star program also helps consumers find an energy-efficient system and is run through Natural Resources Canada. Only furnaces, heat pumps, boilers, and air conditioners that demonstrate high energy efficiency are given an Energy Star.
5. Seasonal energy efficiency
SEER stands for seasonal energy efficiency ratio; it’s used to look at the average efficiency over an entire season. It can help homeowners find an energy-efficient option that will work throughout the year, rather than only during peak periods.
6. Cost efficiency
Finally, cost efficiency is something that homeowners will want to consider. Customers generally want an HVAC solution that will do its job without having to shell out thousands of dollars in power bills. An energy-efficient system with a solid SEER rating will run more efficiently and less often than other options.
Thinking of renovating?
Types of heating and air conditioning systems
Naturally, there are several HVAC systems, some of which you may already have or be interested in for your home. Here are the most popular options that we see in Ontario and Quebec.
Forced air systems
Forced air systems are one of the most common systems you’ll see in homes. They refer to any HVAC system that delivers temperature-controlled air into your home via air ducts and vents. A forced air system is most used with a split system with an independent furnace or heating source and an air conditioner located outside the home.
Hot water heating systems
A more traditional heating method, hot water heating (or radiator heating) uses a boiler and hot water to heat the home. These systems are often found in older buildings and can heat homes for an extended period. However, there are no ductwork homes with this type of heating and homeowners would have to install an alternative duct system or ductless system to provide air conditioning during the summer.
Window and portable air conditioning systems
Window and portable air conditioning systems can provide a cost-effective solution for homeowners without a central air conditioning unit. A window-mounted AC unit allows for a specific room to experience cooler conditions. Typically, these systems are mounted in a home’s bedroom window and are not as efficient as other AC systems. A portable AC brings all the benefits of a window-mounted unit with the ability to follow you around your home. It will not be as efficient or cool as a central AC system, but it will keep the room you’re in cooler than the rest of the house.
Central heat pumps
Central heat pumps are a popular option for those in warmer climates because they provide both heating and cooling with one central heat pump and an air handler. The heat pump acts as an air conditioner during the summer, removing the heat from your home and expelling it outside. During the winter, it reverses the flow of the refrigerant inside the heat pump and captures heat from the atmosphere to warm the home.
Gas furnaces
A gas furnace heats the vast majority of homes in Ontario. A gas furnace burns natural gas in the furnace’s burner and passes the heat through a heat exchanger. Then, air is blown over the heat exchanger, and the warmed air is distributed throughout the house via ducts or vents. It is a simple and efficient way to heat a home.
Ductless systems
Ductless air conditioning systems (or mini split units) can be a series of air conditioning units that connect with a single outdoor compressor. The smaller indoor units blow warm air over evaporator coils filled with refrigerant to cool the air and then return it to the room. The refrigerant transfers the inside heat to the outdoor unit, which then blows it outside. Indoor units can either be in the ceiling or even floor mounted.
Ducted air conditioning systems
Central air conditioning systems found in Quebec and Ontario are designed to cool the entire home. Most of them use forced air heating systems to take advantage of the heating and ventilation ducts. These systems consist of a large outdoor compressor and coil as well as an evaporator connected to refrigerant lines installed in the central heating system. After capturing the warm air, the evaporator cools and then distributes it to the rooms through the ducts.
Most frequently asked HVAC questions
How do I know if I need a new HVAC system?
If your HVAC system starts to be inefficient or makes loud, sudden noises, it is generally time to consider getting a new one. It’s best to consider replacing any HVAC system that is older than ten years.
Do you have to replace your AC and furnace at the same time?
No, you do not generally need to replace both units at the same time. However, if they were installed simultaneously, it is best to have an HVAC professional inspect both units to determine if you should replace one system over another.
How often should you have your HVAC system serviced?
A good rule of thumb is to have your HVAC system serviced once per year.
What are the pros and cons of a heat pump?
Heat pumps are an excellent system for moderate or hot climates, as well as for colder regions. They are great at cooling homes and provide adequate heating in the winter. However, if you live in an area of the country that maintains temperatures below –15 °C during the winter, they are not the best system for your climate.
Can you replace an oil furnace with electric heating?
Yes, it’s possible. This shift is recommended as electrical systems are more environmentally friendly, safe and offer long-term cost savings.
A comfortable home for you and your family
If you are considering getting a new HVAC system, are looking to replace an old one, or have questions about the process and pricing, reach out to our Renovation Advisors about your HVAC project.
Find a HVAC expert
Not quite ready to take the plunge? Learn how to save on heating costs and prepare your home for the winter months ahead! When you need to get your system repaired, find a specialized contractor through HomeExpress‘s fully online referral service.
