When to Replace Your AC System?
In most cases the situation is not clear-cut when you need an AC replacement, the question becomes, “Should I continue to spend money on AC expenses?” The average AC system life is 12 to 15 years. When major repairs are needed and these costs approach the price of a new air conditioner, it’s time to consider an AC replacement. The answer is more straightforward when critical, expensive AC part(s) fail and you have no cold air flow — you are faced with either paying a sizeable expensive repair or getting an AC replacement.
From an economic point-of-view, it’s not cost-effective to continue to spend repair dollars on old technology and to use more electricity to run it. The cost-of-ownership over a few years can justify the cost of a new AC replacement.
For example, up to 60% of the monthly household electricity bill may be due to an old AC clunker with a poor energy rating. Typically the extra electricity may be as high as $100 per month or $3,600 over three years. The next major repair for $2,500 or more (i.e., an AC compressor) plus the $3,600 for electricity is a total of $6,100. Hence, a new AC system for $6,100 is justifiable with a payback in 3 years.
For a 15-year-old system, the cost of replacing a failed AC compressor and a leaking evaporator coil unit at the same time can usually justify the purchase of a new energy efficient system.
Old AC systems use the R22 refrigerant also known as Freon. Freon is being completely phased out in December 31, 2019 and the price goes up every week. R410a is approved for use in all currently manufactured air conditioners and heat pumps. Unlike R22, R410a will not deplete the ozone layer.
If your AC system has refrigerant leaks, it can be expensive to keep your system running to produce cold air. AC leaks can be costly to detect, fix and to replace the loss refrigerant. A single AC leak repairs can range from $145 to $1,000’s, depending on the leak location, the amount of Freon lost and size & type of leak. There comes the point where frequent repair of AC leaks and the cost of other repairs are not worth it.
As a 15 year old AC system that’s aging, it gets more difficult to find and buy parts to fix it. Eventually, the AC system will fail, and parts will not be available. At that point, you have no choice – the best solution going forward is an AC replacement. Hopefully, this failure occurs in the fall or winter months and the best time to buy a new AC system.
For a business, it’s a lot easier to justify the purchase of a new AC system because it’s a capital asset that can be depreciated and deducted from Federal Income Tax. In any case, Frosty’s can assist in deciding to keep the old system or buy a new system.
Just call us (813) 621-5900 for a free consultation to discuss your AC system situation. As always, Frosty’s offers Financing Options to cover the total cost of your new AC system with installation. To learn more click, Frosty’s Financing Options.
Factors to consider for AC replacement, your existing AC system has:
- More than 15 years of operation
- Frequently breaks-downs
- Major component(s) that need repair – i.e., AC compressor or evaporator coil
- AC parts that are unavailable
- Refrigerant Leaks
- Poor performance or not working properly for years
- Rebates and tax credits are available