AC Replacement Cost in 2025: Fort Collins Homeowner’s Guide to Pricing, Rebates & New EPA Rules

Even with the highest quality of maintenance and repairs, air conditioners eventually need to be replaced. If your AC is having ongoing problems, one of our experienced heating, ventilation, and air conditioning (HVAC) technicians can help you determine the best course of action. We can discuss the AC replacement cost in 2025 and help you navigate changing regulations.

Average AC Replacement Costs in 2025

The total AC replacement cost in Fort Collins can vary significantly based on a few important factors.

• The brand
• The unit’s capacity
• How difficult the installation process is
• Additional HVAC equipment you need to replace
• Line set protection
• Tax credits and rebates
• Ductwork replacements and installations

While the new AC unit cost can vary from home to home, you’ll generally see a price range that varies between $7,000 and $12,000 in Fort Collins.

Factors Affecting AC Replacement Costs

If you’re getting an AC installation or replacement, there are a few important factors that can impact the total AC replacement cost in 2025. Before your appointment, one of our team members will review your current HVAC setup and determine the best AC installation option. Then, we can calculate the total HVAC installation cost for your home. While each unit is different, the following are some of the key factors that will affect the total cost.

System Type and Size

When we talk about the air conditioner’s size, we’re referring to tons or British Thermal Units (BTUs). One ton of cooling capacity is the equivalent of 12,000 BTUs. During your AC consultation, one of our HVAC technicians will calculate the AC load by considering the design, thermal enclosure, and internal load. They will consider the number of occupants, the orientation of your home, the presence of windows, and other factors to make an accurate estimate of the ideal unit size.

Energy Efficiency Ratings (SEER2)

The Seasonal Energy Efficiency Ratio 2 (SEER2) is created through a very simple calculation. 

SEER2 = Total Cooling Output (BTUs) / Total Electrical Energy Input (watt-hours)

In essence, SEER2 reflects the total amount of heat removed from your home during the cooling season. By getting an AC replacement with a higher SEER2 efficiency, you can reduce the amount you spend on energy costs.

Installation Complexity and Labor Costs

The complexity of the installation can impact your AC replacement cost in Fort Collins. A more complex installation often requires more time, leading to higher labor costs. It can also necessitate specialized equipment, which can increase the overall HVAC installation cost.

Ductwork Modifications or Replacements 

In an average American home, around 20% to 30% of the air that goes through ductwork ends up getting lost through pinhole leaks and gaps. Because of this, it’s a good idea to get your ductwork sealed and repaired during routine maintenance appointments. 

If your ductwork has holes and gaps, it may need to be replaced during your AC appointment. Depending on the heat pump or central air replacement you get, we may also need to modify your existing ductwork. All of these replacements and modifications can end up adding to the total cost of the installation.

Geographical Location and Climate Considerations

The air conditioner replacement cost can vary based on where you are located. For example, a hot climate may require a larger AC capacity. Meanwhile, an especially humid climate may necessitate the installation of a dehumidifier in your home. 

Brand and Model Selection

The brand and model you select can impact the cost to replace AC systems. If you need additional HVAC equipment installed, this will also add to the total price.

Additional Costs to Consider

Finally, there are a few additional costs that can impact your new AC unit cost. Before you get your AC replacement in Fort Collins, we can walk you through some of the estimated costs involved in installing your new AC.

• Permit Fees and Inspections: Each city has different permitting and inspection requirements, which can cause the cost to vary.
• Thermostat Upgrades: Smart thermostats and programmable thermostats are convenient and can help you save money on your power bill. When you get an AC replacement, it’s often beneficial to upgrade your thermostat at the same time.
• Electrical Panel Upgrades: Even high-quality electrical panels can eventually break down. When this happens, one of our HVAC technicians can help you determine the best replacement options.
• Removal and Disposal of Old Equipment: Our technicians can remove your old HVAC equipment and ensure that it is properly disposed of.

Impact of 2025 EPA Refrigerant Regulations

Another potential factor impacting your AC replacement cost in Fort Collins is EPA regulations. For example, the manufacture of new ACs using R-410A was banned starting on January 1, 2025. You can still replace faulty components and get your R-410A equipment serviced, but new ACs and heat pumps cannot be installed that use R-410A. Instead, you need to have a system put in place that uses R-32 or R-454B. 

Besides the phase-out of R-410A, there are other factors impacting the cost to replace an AC system. Thanks to recent changes in international trade and the banning of new R-410A equipment, there may be more supply chain delays and higher prices for the equipment that arrives. Many homeowners and businesses are now replacing equipment that has R-410A, so there is increased demand for these products. Because of this change, early planning is especially important.

Federal Tax Credits and Rebates

Fortunately, there are important steps you can take to lower the cost of your heat pump or central air replacement. There are several important federal tax credits and rebates that can save you hundreds or thousands of dollars. 

Under the Energy Efficiency Home Improvement Credit, you can get a tax credit worth up to $3,200 for energy-efficiency improvements you make to your home after January 1, 2023. This credit is worth up to $1,200 per year for specific energy-efficient home improvements, and there are additional limits to the amount you can claim for doors, exterior windows, and skylights. 

In total, this nonrefundable credit covers up to 30% of your expenses. For central air conditioners, the maximum credit is $600 per year. You can claim up to $2,000 per year for heat pumps and water heaters. Plus, you can get up to $150 back for performing a home energy audit.

There are also state and local tax credits in many areas. In Colorado, there is something known as the Colorado Heat Pump Tax Credit. These are provided through your HVAC company, so talk to one of our technicians to see if you qualify for it.

When to Repair Vs. Replace Your AC

Sometimes, you can save on a new AC unit by simply repairing your existing air conditioner. There are a few situations where it makes more sense to replace your unit.

• Age: Many central air conditioners and heat pumps will need to be replaced once they’re around 10 to 15 years old. If your AC starts to fail after the 10-year mark, it’s a good idea to get it replaced. 
• Energy-Efficiency: Even if your AC is in great health, it may make sense to research the AC replacement cost in 2025. Older units are generally less energy efficient than modern air conditioners. Over time, the improved energy efficiency can save you a significant amount of money on your energy bills.
• Repair Frequency: If your AC seems to break down all the time, your best option may be to get a replacement. Once HVAC systems start to fail frequently, the cost of ongoing repairs will quickly become more expensive than simply getting a new unit. 
• Cooling Issues: Sometimes, older units will create hot and cold spots in your rooms. If some of the parts are faulty, you may also deal with frozen evaporator coils and other issues. If your AC is unable to provide the performance level you need, it’s time to invest in a new model.

Often, you will hear HVAC technicians talk about the $5,000 rule. This rule of thumb basically means that you should repair any problem if the age of the unit times the repair cost is less than $5,000. If the calculation is more than $5,000, you’re better off getting a new AC. 

While there are occasional exceptions to this rule, it is generally an effective policy. If your AC or heat pump will only cost a few hundred to fix, it’s probably a better idea to simply get it fixed. Afterward, you can talk to your HVAC technician about scheduling routine maintenance appointments, so your AC is less likely to break down in the future.

Tips for Saving on AC Replacements

While AC replacements are a necessary fact of life, they are often challenging for homeowners to budget for. Fortunately, there are a few important steps you can take to reduce your costs as much as possible.

Consider Financing Options

One of the best ways to lower your upfront HVAC installation cost is through financing. Our team has a range of different financing options in Fort Collins that can help you afford your AC purchase. We know most people don’t expect their AC to stop working all of a sudden, so we try to make affording a replacement as easy as possible.

Conduct a Home Energy Audit

Before you get an AC installed in your home, you need to have a home energy audit done. This will help you find out where your home is wasting money on energy costs. For example, you may realize that certain rooms need new insulation, or your ductwork is leaking cold air. At the end of the audit, you’ll receive a report about all of the ways your home can save money on its energy costs. 

Wait for Manufacturers’ Promotions 

While some people have to replace their AC after an emergency breakdown, other homeowners are lucky enough to realize that their AC needs to be replaced before it becomes a pressing issue. If you think that you’ll need a new unit in the near future, keep your eye out for manufacturers’ discounts. To see the latest specials at Balance Point Heating, Cooling & Plumbing, check out our promotions page.

Get Multiple Quotes 

You should never feel like you’re being pressured into making a purchase. A good HVAC company will be happy to give you a free estimate for AC replacement costs. Once you have a few different estimates, you can determine which one will work best for your needs.

Schedule Your Replacement for Off-Peak Seasons

In general, HVAC services tend to cost more during the busy seasons. ACs typically break down when they’re being used the most, so many homeowners call us for help during the hottest days of the summer. By scheduling your replacement for off-peak seasons, you can often enjoy better scheduling flexibility and more discounts.

Remember Your Rebates

There are multiple local, state, and federal rebates available for energy-efficient HVAC equipment. Ideally, you should figure out which rebates you qualify for before you get any services. Once you know what the eligibility rules are, you can make sure you pick products that are eligible for the rebate. Then, you should carefully document your receipts so that you can use them when tax time rolls around next year.

Get Your AC Serviced

Ultimately, the best way to save money on AC replacements is by delaying them as much as possible. By scheduling a routine maintenance appointment each spring, you can avoid unnecessary repairs and ensure better AC longevity.

Learn More About AC Replacement Options in Fort Collins

If you need assistance in figuring out the AC replacement cost in 2025, we can help. Our team of HVAC professionals has years of experience working on central air conditioners, heat pumps, and other HVAC equipment. We provide free consultations and personalized advice, so you get the exact help you need.

Our team can help you calculate the AC replacement cost in Fort Collins. Learn more about our AC replacement options by visiting our website today.