Air Conditioners

HVAC Installation & Replacement Cost

When it comes to keeping your home comfortable year-round, having the right HVAC system is essential. However, understanding the cost of HVAC installation and replacement can be challenging. In this comprehensive guide, we will explore the factors that influence the cost of HVAC systems, and the different types of systems available, and provide an overview of the average costs in Canada. Whether you’re considering a central air conditioning system, a ductless split system, or a heat pump, this guide will help you make an informed decision and find the best solution for your home.

Before diving into the costs, it’s important to have a basic understanding of HVAC systems. HVAC stands for Heating, Ventilation, and Air Conditioning, and it refers to the system that provides heating and cooling to your home. HVAC systems can vary in size, type, and features, but they all serve the same purpose of creating a comfortable indoor environment.

There are several types of HVAC systems commonly used in residential settings, including forced air systems, hot water heating systems, window and portable air conditioning systems, central heat pumps, gas furnaces, ductless systems, and ducted air conditioning systems. Each type has its own advantages and considerations, which we will explore in more detail.

Factors Affecting HVAC Installation and Replacement Cost

The cost of installing or replacing an HVAC system can vary depending on several factors. Here are some key considerations that can influence the overall cost:

HVAC Systems Installation and Replacement Costs In Canada

Now that we’ve covered the key factors influencing HVAC installation and replacement costs let’s explore the different types of HVAC systems and their average costs in Canada.

1. Central Air Conditioning Installation Cost

Central air conditioning systems are among the most popular choices for cooling entire homes. They consist of an indoor air handler and an outdoor condenser unit. The average cost for a professional installation of a central air conditioning system in Ontario ranges from $3,500 to $6,000. Factors such as the size of the unit, efficiency ratings (SEER), and any additional upgrades or accessories can impact the final cost.

2023 Central Air Conditioner Prices by Tier

When it comes to central air conditioner prices, it’s important to consider the brand and the specific models offered. Prices can vary based on the brand’s reputation, features, and overall quality. Here is a breakdown of central air conditioner prices by brand:

Economy Tier:
Premium Tier:

Air Conditioner Prices by Unit Size and weight

The size and weight of the air conditioner unit you choose will depend on the size of your home or commercial space. Here is a breakdown of air conditioner prices based on unit size and weight:

Unit Size (lbs) Economy Tier Mid-range Premium Tier
3.5k $2500 $2800 $3000
4.5k $2500 $3000 $3500
6.5k $3000 $3500 $4000
9k $3500 $3800 $5000
11k $3500 $4000 $6000

Air Conditioner Installation Costs

The cost of air conditioner installation can vary depending on the complexity of the installation process and the specific requirements of your home. Hiring a professional HVAC contractor is crucial to ensure a proper installation. Here are some factors that can affect the cost of installation:

It is recommended to obtain quotes from multiple contractors to compare prices and services offered. While it may be tempting to choose the lowest price, prioritize quality and expertise in HVAC installation.

Air Conditioner Prices by City and region

The cost of purchasing and installing an air conditioner can vary from city to city and region to region. Here is a breakdown of average air conditioner prices in various cities and regions across Canada:




Average Across Canada:

Additional Information: If your home already has a furnace, opting for a split system air conditioner can save on installation costs. Make sure to consult with a professional HVAC contractor to determine the best option for your specific needs.

2. Heat Pumps Installation Cost

Heat pumps are versatile systems that provide both heating and cooling. They work by transferring heat indoors during winter and outdoors during summer. The average cost of installing a heat pump in Canada ranges from $4,100 to $7,000. Factors such as the type and brand of equipment, necessary permits, and labor costs can impact the total cost.

To provide you with a general idea of the average costs, we have researched the current market prices for different types of heat pumps.

Type of Heat Pump Unit Cost Range Installation Cost Range
Air-Source $6,000 – $15,000 $1,500 – $5,000
Geothermal $20,000 – $40,000+ $10,000 – $30,000+
Ductless Mini-Split $3,000 – $7,000 $1,000 – $3,000
Gas-Fired $5,000 – $10,000 $2,000 – $4,000

These cost ranges are approximate and can vary depending on various factors such as location, additional installation requirements, and the specific features of the heat pump system. It is recommended to obtain quotes from multiple installers to find the best price and quality for your specific needs.

Air-Source Heat Pumps: Affordable and Efficient

Air-source heat pumps are the most common and affordable type of heat pump in Canada. They can provide both heating and cooling for your home by extracting heat from the outdoor air and transferring it indoors during the colder months. The average unit cost for an air-source heat pump ranges from $6,000 to $15,000, while the installation cost can range from $1,500 to $5,000.

One of the advantages of air-source heat pumps is their energy efficiency. According to the U.S. Department of Energy, heat pumps can produce 1.5 to 3 times more energy than they consume. This translates to significant savings on energy bills for homeowners. Additionally, air-source heat pumps require minimal maintenance and can last up to 20 years with proper care.

It’s important to note that air-source heat pumps are most effective in moderate climates where the average temperature doesn’t typically drop below freezing. In colder regions, homeowners can combine their air-source heat pump with a furnace to create a dual-fuel system for more efficient heating.

Geothermal Heat Pumps: High Efficiency at a Higher Cost

Geothermal heat pumps are known for their exceptional energy efficiency and long-term cost savings. These heat pumps utilize the stable temperature of the ground to heat and cool buildings. While geothermal heat pumps offer significant benefits, they come with a higher upfront cost compared to air-source heat pumps.

The average unit cost for a geothermal heat pump ranges from $20,000 to $40,000 or more, while the installation cost can range from $10,000 to $30,000 or more. The higher cost is primarily due to the extensive work involved in installing the underground loop of pipes, known as a heat exchanger, which collects and stores the ground’s constant temperature. However, geothermal heat pumps can result in substantial energy savings over time, making them a worthwhile investment for homeowners looking to reduce their carbon footprint and lower their energy bills.

It’s important to consider your home’s location and available space when deciding on a geothermal heat pump. The pipes for the heat exchanger need to be laid in dug-out trenches at least 4 feet deep, which can impact the overall cost of installation. Consulting with a professional installer is recommended to determine if a geothermal heat pump is suitable for your property.

Ductless Mini-Split Heat Pumps: Affordable and Flexible

Ductless mini-split heat pumps offer a cost-effective solution for homeowners who do not have existing ductwork in their homes. These heat pumps consist of a small indoor unit connected to an outdoor unit and can be installed in individual zones or rooms. They are ideal for smaller homes or areas that require heating and cooling on a zone-by-zone basis.

The average unit cost for a ductless mini-split heat pump ranges from $3,000 to $7,000, while the installation cost can range from $1,000 to $3,000. The lower installation cost is due to the simplified installation process, as no ductwork is required. Ductless mini-split heat pumps are highly efficient and allow for precise temperature control in different areas of the home, resulting in energy savings and improved comfort.

It’s important to determine the number of zones or rooms you want to heat and cool before selecting a ductless mini-split heat pump. Each indoor unit corresponds to a specific zone, and additional units may be required for larger homes or multiple rooms.

Gas-Fired Heat Pumps: Efficient Heating for Large Spaces

Gas-fired heat pumps, also known as hybrid heat pumps, combine the benefits of a heat pump with a gas furnace. These systems are ideal for larger homes or commercial buildings that require heating and cooling in multiple zones. Gas-fired heat pumps rely on natural gas as their primary fuel source, providing efficient heating and cooling throughout the year.

The total average cost for a gas-fired heat pump and installation ranges from $5,000 to $10,000. The installation cost can range from $2,000 to $4,000, depending on the specific requirements of the system and the size of the space being heated and cooled.

Gas-fired heat pumps are known for their ability to support large rooms and buildings, making them popular in commercial settings. However, they can also be used in residential homes larger than 4,000 square feet. It’s important to consider the availability of natural gas in your area and consult with a professional installer to determine if a gas-fired heat pump is suitable for your property.

3. Gas Furnaces Installation Cost

Gas furnaces are commonly used for heating homes in Ontario. They burn natural gas to generate heat, which is then distributed throughout the house via ducts or vents. The average cost of replacing and installing a gas furnace ranges from $2,500 to $5,000. Factors such as the size of the furnace, efficiency ratings, and any additional upgrades or accessories can influence the final cost.

Popular Gas Furnace Brands With Prices

Several reputable brands offer high-quality gas furnaces in Canada. Here are some of the most popular brands and their approximate price ranges:

These price ranges are estimates and can vary based on factors such as the model, size, efficiency rating, and additional features of the gas furnace.

The Cost of Gas Furnace Installation in Canada

The cost of gas furnace installation in Canada can vary depending on the factors mentioned earlier. To give you a general idea of the price range, here is an approximate breakdown of costs:

It’s important to note that these cost ranges are estimates and can vary based on factors specific to your installation.

4. HVAC Ductless Systems Installation Cost

Ductless air conditioning systems, also known as ductless mini-split systems, are ideal for homes without existing ductwork or for specific zones within a home. These systems consist of an outdoor unit and one or more indoor units that are mounted on walls or ceilings. The average cost of installing a ductless system in Ontario ranges from $2,500 to $3,000 per unit. Factors such as the number of outdoor and indoor units required, brand, output rating, and location can impact the total cost.

Cost Breakdown by Province

The cost of installing ductless air conditioning can also vary by province. Here is a breakdown of the average installation cost in different provinces across Canada:

Province Average Installation Cost
Ontario $4,500 – $7,500
Quebec $4,000 – $6,500
British Columbia $4,500 – $7,000
Alberta $4,500 – $6,500
Manitoba $4,000 – $6,000
Saskatchewan $4,000 – $6,000
Nova Scotia $4,500 – $6,500
New Brunswick $4,000 – $6,000
Newfoundland and Labrador $4,500 – $6,500
Prince Edward Island $4,000 – $6,000

These figures are approximate and can vary based on the specific circumstances of your installation.

Additional HVAC Installation or Replacement Considerations

When considering HVAC installation or replacement, there are a few additional factors to keep in mind:


When it comes to HVAC installation and replacement costs in Canada, several factors come into play. The type of system, size, brand, labor, and additional upgrades all contribute to the overall cost. It’s essential to research different options, obtain multiple quotes from reputable HVAC contractors, and consider long-term energy savings when making a decision.

By understanding the factors influencing HVAC costs and the different types of systems available, you can make an informed choice that meets your needs and budget. Remember to explore government rebates and incentives and consider ongoing maintenance and service costs when budgeting for your HVAC system.

With the right HVAC system, you can enjoy year-round comfort and energy efficiency in your home. Invest in a reliable and reputable HVAC contractor to ensure proper installation and optimal performance of your system. Stay comfortable, save money, and make the most of your HVAC investment!