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Cost to Replace AC Unit: What You Should Know

Home | Blog | Published on July 17th, 2025

Navigating the costs and logistics of replacing your air conditioning unit can feel overwhelming especially in a climate like Tempe, AZ, where reliable cooling is not just a luxury but a necessity. This guide from Savage Air Conditioning outlines everything you need to know, from cost factors and system selection to savings opportunities and installation expectations. Whether you’re comparing repair versus replacement or budgeting for a high-efficiency upgrade, we’re here to help you make an informed, confident decision.

Visual comparison of repair costs versus new AC system benefits in Tempe home

Replacing your air conditioner is a major investment, especially in Tempe, AZ, where a dependable cooling system is critical for surviving the intense summer heat. If you’re searching “cost to replace AC unit,” you’re likely considering whether to repair your current system or invest in a new one. At Savage Air Conditioning, we provide honest, detailed insights on costs, benefits, and what to expect empowering you to make the right decision for your home and budget.

What Affects the Cost of AC Replacement?

The total cost to replace an AC unit can vary based on several key factors. These include the size of your home, the system type you choose, its energy efficiency rating (SEER), and whether ductwork or electrical upgrades are necessary. In Tempe, homeowners typically spend between $5,000 and $12,000 for a complete replacement, which includes both the equipment and professional installation. Older homes may require duct modifications or structural adaptations to accommodate newer, more efficient systems. While high-efficiency models come with a higher upfront cost, they can yield substantial long-term savings through reduced energy usage and may qualify for attractive rebates and federal tax credits.

Signs It’s Time to Replace Your AC

If your current AC unit is more than 10 to 15 years old, constantly requires repairs, uses outdated refrigerant such as R-22, or struggles to maintain comfort during Tempe’s scorching heat, it may be time to consider a replacement. These issues often point to inefficiencies that lead to higher energy bills and frequent breakdowns. At Savage Air Conditioning, we offer comprehensive assessments to help you determine whether a repair is sufficient or if a full replacement would be a smarter, more cost-effective long-term solution.

What to Expect with AC Replacement

Choosing Savage Air Conditioning for your AC replacement means receiving a seamless, start-to-finish service. It begins with a detailed load calculation to ensure your new system is properly sized for your home’s specific cooling needs. Our technicians then remove and responsibly dispose of the old unit, install the new equipment, and make any necessary upgrades to your ductwork or electrical systems to guarantee optimal safety and performance. The process includes precise refrigerant charging, thorough pressure testing, and a final inspection to confirm your new system operates at peak efficiency. We wrap up by walking you through your new system’s controls and best maintenance practices to ensure your comfort and satisfaction for years to come.

Helping You Save More on Your Upgrade

Savage Air Conditioning is committed to transparency and affordability. We provide detailed, no-surprise quotes and help homeowners unlock savings through available manufacturer rebates, local utility incentives, federal tax credits, and flexible financing options. By working with trusted HVAC brands, we deliver top-quality, energy-efficient systems that are built to last and backed by strong warranties. Our team ensures you get the most value for your investment while keeping your monthly energy bills in check.

FAQs About AC Replacement Cost in Tempe, AZ

Q: What is the average cost to replace a residential AC unit?
A: In Tempe, the average cost ranges from $5,000 to $12,000, depending on unit size, energy efficiency rating, and the complexity of the installation.

Q: Are there rebates for replacing an old AC system?
A: Yes. Many homeowners are eligible for rebates from utility companies, manufacturer promotions, and federal programs. Our team will help you identify and apply for all applicable incentives.

Q: How long does AC replacement take?
A: Most residential AC replacements are completed within one day. If extensive ductwork or electrical upgrades are needed, the project may take longer.

Q: Is it more cost-effective to replace both indoor and outdoor units together?
A: Yes. Replacing both units at once improves system compatibility, maximizes energy efficiency, and often qualifies for bundled pricing and extended warranties.

Upgrade Your Comfort With Confidence

Whether your current AC has reached the end of its lifespan or you’re ready to switch to a more efficient model, Savage Air Conditioning makes replacement simple and stress-free. Contact us today for a free in-home estimate and personalized system recommendation. We’ll help you stay cool, save money, and enjoy reliable comfort all summer long.

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