Repair or Replace Your HVAC System? Questions to Ask Before You Decide

Start with the system you have

Before deciding anything, get the current system checked. ENERGY STAR recommends a yearly pre-season check-up and says a dirty filter “can increase energy costs and damage your equipment, leading to early failure,” and that airflow problems can cut efficiency by up to 15 percent. Some problems that feel like a failing system turn out to be maintenance items.

Questions to ask about a repair

1. What exactly failed, and how did you confirm it?
2. Can I have the diagnosis and the repair price in writing, with parts and labor listed?
3. Is the rest of the system in good shape, or are other parts likely to need work soon?
4. Could my comfort problem be the ducts instead of the equipment? (ENERGY STAR lists hard-to-heat or cool rooms, stuffy rooms and high bills as signs of leaky ducts.)
5. Does this repair involve refrigerant? If so, is the technician EPA Section 608 certified?

When keeping your system is the right call

If the repair is clearly explained, the rest of the system checks out, and your home is comfortable, repairing and maintaining what you have can be a perfectly good choice. In our view, nobody should feel pushed into new equipment by a single visit.

If you are replacing, ask these questions

• How did you size it? ENERGY STAR says your contractor should verify the right size with a “Manual J” calculation. A system that is too large or too small will struggle to keep you comfortable.
• Should I consider a heat pump or dual fuel? ENERGY STAR says an air-source heat pump can be a drop-in replacement for a central AC or furnace in most climate zones, and that pairing a heat pump with a fairly new furnace creates a dual-fuel system. See our heat pump or AC guide.
• What are the efficiency ratings? Ask for SEER2 and EER2 (cooling) and, for heat pumps, HSPF2 (heating), and whether the heat pump is ENERGY STAR certified.
• What happens to my old system? EPA rules prohibit intentionally venting refrigerant when equipment is serviced or disposed of. Ask how the old refrigerant will be recovered.
• Is a permit needed? Permit rules are local. Ask the contractor and check with your city or county building department.

Hiring a contractor

The Federal Trade Commission’s advice on avoiding home improvement scams includes:

• Consider only contractors who are licensed and insured. Check the license with your state or county, and ask for proof of insurance.
• Get multiple estimates. A written estimate should describe the work, materials, completion date and price. Don’t automatically choose the lowest bid, and ask why if estimates differ a lot.
• Get a written contract with the contractor’s name, address, phone and license number, start and completion dates, and the promises made about scope and cost. If you sign it at home, it should include a written statement of your right to cancel within three business days.
• Don’t pay the full amount up front. Some states limit down payments.

California example: the Contractors State License Board (CSLB) lets you check the status of a contractor license and has guidance for homeowners installing a new HVAC system. Other states have their own licensing boards. Check your state.

Tax credits and rebates

• DOE says its Home Energy Rebates are available in select states, run by state energy offices. Contact your state or territory energy office.
• Many utilities offer rebates. ENERGY STAR’s Rebate Finder searches by ZIP code.

Before-you-decide checklist

• System checked, and diagnosis in writing.
• Repair price in writing, with parts and labor listed.
• Ducts and filter checked.
• If replacing: Manual J sizing, efficiency ratings, and a plan for the old refrigerant.
• At least two or three written estimates from licensed, insured contractors.
• Written contract reviewed; no full payment up front.
• State energy office and utility checked for current rebates.