$6,300 installed is about as low as we have seen an air conditioner sell for in 2024 in Arizona.
$39,000 for a single system is the highest priced unit we’ve seen purchased for an AC unit in 2024.
But most people don’t want or need either of these systems for the Arizona heat.
$14,368 is the average price of an installed air conditioner in Arizona. This price varies greatly based on the type of system, size of house, and quality of your home’s insulation.
While you’re probably thinking, “but I know a guy who’ll do it for 75 hundred bucks.” What you need to remember is that there are considerably more companies selling systems for over $16,000 then there are small operators installing systems for cheap.
The most important thing to know is the true value of a high-quality installation. You really should get what you pay for.
Let’s look at how this all breaks down.
Air conditioners suited for Arizona heat come in 3 main designs. Rooftop, splits, and mini-splits (ductless). Rooftop systems are the most common in Arizona, followed closely by split systems. Ductless mini-splits are mot often used as additional comfort control to a primary system.
The prices will range drastically based on 3 important factors.
- The size of the system needed.
- The size of the company installing it.
- The quality of the installation.
System Size
24% of new AC systems in Arizona are incorrectly sized for the house they are installed in. 83% of these systems were oversized for one of three reasons:
- Incorrect ductwork size and design.
- Salespeople who don’t have a clue how to size equipment properly.
- No consideration for additions or lack of insulation.
The other 17% of systems were undersized for the home. This is mainly due to a lack of attention by undertrained salespeople to homes that have been renovated. In some cases, however, lazy salespeople just matched the size of the existing equipment, assuming it was good enough. With meaningful changes in refrigerant, this leads to AC systems that struggle to keep up when it gets hot.
Why does size matter? Because you want your system to last as long as possible at the lowest cost of ownership.
Company Size
As AC companies get larger in Arizona, they require a lot of money to operate. The cost of management, marketing, and sales adds significantly to the price a buyer has to pay. While some companies run efficient operations at fair margins, others expect you to pay for their greed and inefficiencies.
Fancy truck wraps, TV ads, and expensive Google ads all drive up the cost of doing business. And salespeople in kakis and shinny shoes are an expense that is passed along to buyers.
Alternatively, when a company is really small, they are unlikely to have the same level of conveniences available before and after the sale.
Why does size matter? Because you want to pay a fair price and reward efficiently run companies with your dollars that can hold up their side of the bargain after the purchase has been made.
Installation Quality
My mentor, Mick, always told me, “The most important day of a air conditioners life is the day it is installed.” System failures can almost always be traced back to a lack of quality in the installation process.
While big companies are keen to ‘rip and replace’ 2 to 3 systems a day, this is where corners are cut and the important details are missed. To “keep their guys busy,” they can always come back and fix their mess later. For some, it’s even a profit center. [throw up cat gif]
Taking the time to do an installation right makes all the difference in the world. In my personal experience, we saw a drop in callbacks and warranty work when an installation took 1 hour, 38 minutes longer than the “fast installers.”
Why does install quality matter? Because it will end up being more convenient to you after the sale. Less time, stress, anxiety, frustration, and exertion on your part after the sale has been made. Ain’t nobody go no time for that. [gif]
What goes into the price of an AC unit in Arizona?
It costs significantly more to run a company then most people understand. While some companies struggle with the burden of their inefficiencies, others are morally burdened with entitled greed. Find a company that you feel is walking the high road, looking out for your best interest in an efficient and trustworthy manner.
A average-sized, well run company is going to spend the following to run their company before taxes are paid to the IRS:
- 40% on labor, payroll, and health benefits
- 20% on permits, services, equipment, and materials
- 7.5% on vehicles
- 2.5% on banking and interest charges
- 5% on facilities and utilities
- 2.5% on insurance and workers compensation
- 2.5% on training
- 10% on marketing
- 5% on sales performance
- 10% profit (before tax)
Business comes with risks and rewards. When there are not enough appointments to go out on, the cost of payroll goes way up. Then the cost of marketing goes up to get more appointments, with no guarantees that it will work. When the weather changes and there is no demand for the service, those fixed costs don’t go away.
When everything works well, however, operationally excellent companies will profit a little more. And as companies get larger, they can leverage economies of scale. Just remember, they have a much larger beast they need to keep fed. And that beast eats cash.
2024 Rooftop AC Unit Pricing
Rooftop AC units are the simplest design, and therefore the least expensive primary AC system for a home in Arizona. Heat exchangers are built into these systems, and therefore, take up less living space in your home. While more susceptible to weather, a well maintained rooftop AC unit should last 15 to 20 years, depending on the installation quality and environmental conditions.
The one additional expense for rooftop AC units is the crane to get them placed on the roof. This is often the reason for a delay in installations. Can you get it up without a crane? Yes. Should you? No. The chances of damaging your system are exceptionally high, particularly getting over the lip of the roof.
The following prices include the cost of a crane in the following examples.
SizeAverage Price1.5 Ton$9,5003 Ton$11,0005 Ton$13,000
These prices include all the typical expenses that are listed above. These prices are based on a well-run, medium-sized business in Arizona in 2024. The prices also reflect a comprehensive parts and labor warranty for 10 years.
2024 Split AC System Pricing
Split AC systems are a 3 piece design, making them a touch more expensive. The furnace is a separate unit that goes inside a closet, garage, or attic. A well maintained split AC system should last 15 to 20 years, and with some proper preventative maintenance, we’ve seen them last 35-40 years without drama. The installation quality and environmental conditions will dictate your new split AC system’s future.
Some unscrupulous contractors will show you pricing without a heat exchanger. As technology changes, buyers run the risk of being unable to match a furnace to their system later, farcing them into a difficult and expense replacement of all of their equipment.
The following prices include the cost of the furnace in the following examples.
SizeAverage Price1.5 Ton$9,9503 Ton$12,6005 Ton$14,750
These prices also include all the typical expenses that are listed above. These prices are based on a well-run, medium-sized business in Arizona in 2024. The prices also reflect a comprehensive parts and labor warranty for 10 years.
There’s no such thing as a free furnace. That’s just bad (and illegal, btw) marketing by people that believe consumers are stupid.
2024 Mini-Split Ductless AC System Pricing
As the name infers, these systems do not require duct work to function. They condition the air from heads that you place around your home. You can run the air conditioner normally to cool the space, and in reverse to heat the space.
Ductless mini-split systems are fantastic for homes without ductwork, or where adding ductwork is cost prohibitive (or ugly). Mini-splits are most often used in Arizona as supplementary heating and cooling solutions to improve comfort to specific spaces.
A well-maintained ductless mini-split AC system should last 12 to 17 years, and with some proper preventative maintenance, we’ve seen them last 20 years. They are a little more finicky than a split AC system, and all the heads need annual maintenance, but on the upside, there are no ducts to clean. As you might have guessed, the installation quality and environmental conditions determine your mini-split’s lifespan.
Ductless mini-split systems are excellent for Arizona weather…98% of the time. Where they fall short are when you need them most — extreme heat and cold. This is often why they act as a support to a primary ducted AC system, but won’t steer you wrong pretty much most of the time.
With the money you save on these units, you can afford some space heaters and ice cream.
SizeAverage Price1 Head$8,5503 Heads$12,670
These prices include all the typical expenses listed above. These prices are also based on a well-run, medium-sized business in Arizona in 2024. The prices also reflect a comprehensive parts and labor warranty for 10 years.
*Beware of the lifetime warranty. This means they will replace the part for life, but overcharge you for the labor. This is another gimmick used to take advantage of the unsuspecting public.
Always get your warranties in writing, including all exclusions, exceptions, terms, and conditions. They should be comprehensive in nature and include all parts and all labor.*
The secret AC assassin
One of the biggest issues with the HVAC industry in Arizona is training. Very few so-called AC Technicians are equipped with the knowledge to solve the most important problem they were sent out to fix — airflow.
While most have a generally good understanding of the tangible bits and pieces that make up your equipment, almost none of them understand the physics and geometry of airflow.
This is apparent from the thousands of homes we’ve visited with:
- Improperly hung ductwork
- Inadequately sized ductwork
- Unsealed ductwork
You know when your room fails to reach your comfort expectations? Ductwork.
Sure, leaking ducts will cost you money, but way more then you’d expect. When the static pressure is incorrect in your system, you’re making your entire system work too hard for too long. Like when you are running up a mountain in Colorado with a gas mask on, and you have asthma. You just can’t catch your breath.
Not only will improvements in your ductwork and insulation save on your systems economy and durability, they will vastly improve comfort to 81% of homes in Arizona with improperly installed ductwork.
If you do find a proper technician who understands airflow, be open to hearing them out about how ductwork and insulation improvements will help your system operate better, and for longer.
Replace or repair?
I have a real issue with these greedy companies that are so desperate to feed the giant they have raised. Don’t get me wrong, I respect a well-run, efficient company that does good work, no matter what size. What I detest are the companies that are willing to do anything to generate revenue out of desperation and fear, not service to the community. MY community.
These out-of-state private equity companies don’t care about anything or anyone but themselves. They run their business from a spreadsheet. This has them manipulating unsuspecting people into purchasing new equipment waaaaay before it is truly necessary.
These morally corrupt companies are putting Americans in a tough spot financially, and they don’t care. Certainly there comes a time when you need to replace your system, but at least look at what a reasonable repair cost would be first.
Not a band-aid. Not a parts replacement exercise.
A proper repair. Fixed fixed.
There is no legitimate energy saving graph, cost analysis case study, or “ROI” explanation that can justify buying a new system prematurely. Yes, even a 10 year old system. Or a 15 year old system.
It’s bullshit with math. It’s trickery. It’s snake oil. It’s mathturbation.
Preventative maintenance and lasting repairs will ALWAYS win the real math game. Strangely enough, those scenarios are never presented in the slick pitch to convince your cash out of your wallet.
How do I know? Because I have an old system. Really old. And my bills are’t exorbitant. And repairing it is still reasonable. And a little preventative maintenance is as good as a cure.
So that’s how I’ve decided to run my AC repair company.
I’m Frankie Fernandez, and I’d love to be your AC Repair Guy.
