A new HVAC system can save the average Baltimore, MD homeowner a lot of money over its lifetime, but can you justify the cost? Buying a new HVAC system and paying to have a professional installation doesn’t exactly come cheap, so what should you do?
Here are a few finance-related points to consider when thinking about purchasing a new HVAC system.
Determine the Costs
It’s practically impossible to get an accurate estimate of how much a new HVAC system will cost you unless you contact an HVAC contractor. For research purposes, however, most HVAC systems run anywhere from $6,000 to $12,000 for a 1,000 square-foot home. This average assumes that your home already has all the required infrastructure in place.
For a more detailed breakdown, you can assume that a central heating furnace will cost between $2,500 and $7,500. A central air conditioner for a 2,000 square-foot home costs anywhere from $3,000 to $5,000. Doing the ductwork generally runs from $1,000 to $3,000. Again, these are only generalized price points and may not reflect your actual costs. The reason for this is that there are several factors that can impact average costs, including the size of your home, the existing infrastructure, and the HVAC model you prefer.
However, understanding even a ballpark estimate can help you figure out your budget and make it easier to set a financial goal.
Look for Rebates
Most state and local utility companies offer rebates for replacing an older HVAC system. If you can score one of these rebates, you could actually earn thousands of dollars back just from making the upgrade.
Rebates, tax credits, and other incentives are also offered by government agencies. Depending on where you live, your city might offer energy efficiency rebates that are awarded for HVAC upgrades, lighting upgrades, and other improvements. You will need to check energy.gov for specific information regarding what incentives are offered in your area.
What’s more, you can take advantage of federal income tax credits for energy efficiency upgrades. If you buy an ENERGY STAR-rated HVAC system in 2017, for example, your tax credit is 30 percent of the total cost of the system. This percentage will remain available through December 31, 2019. After that, the percentage will decrease each year until it expires in 2021.
In addition to government rebates, HVAC companies often offer ongoing rebates and money-saving options for buying their products. Ask your HVAC contractor for more information regarding current specials.
Take Advantage of Off-Season Discounts
In most cases, HVAC contractors are busier in the winter than other seasons. Because of this, it’s not exactly the best option to purchase a new heater in the dead of winter.
Waiting until the off-season, such as the spring or late summer, could be a smart decision. That’s because HVAC contractors aren’t making as many sales during these down times, but they still need to move product. In order to do so, they will typically offer deep discounts and specials because they need the business.
While this isn’t a sure way to save money on your new HVAC system, it is worth looking into.
Consider the Savings
If your current HVAC system is older, it’s probably drawing a lot of energy and resulting in high utility bills. While finding the money to afford a new HVAC system can seem difficult, imagine how much money you’re wasting by not upgrading.
A new HVAC system will provide better energy efficiency and help keep more money in your pocket. It’s an essential cost that will pay off in the long run. Once you’ve done your research and set your budget, you can begin setting money aside and keeping an eye on discounts and rebates. It may not happen overnight, or even within the year, but you can pay for that new HVAC system if you don’t lose focus.
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