Upgrading your HVAC system is one of the most important investments you’ll make in your home’s comfort and energy efficiency. So, how do you get the best deal on a new HVAC system without sacrificing quality or reliability?
The best way to get a deal on a new HVAC system is by comparing estimates from licensed contractors, timing your purchase during off-peak seasons, taking advantage of rebates and tax incentives, and choosing an energy-efficient system that fits your home’s size and needs. High-efficiency equipment may provide a higher upfront estimate, but when paired with HVAC rebates and tax credits, you will save significantly in the long run.
At Neighborhood Plumbing, Heating, Air & Electric, we’ve helped thousands of Minnesota homeowners get top-quality systems at fair prices. For fast, expert answers tailored to your home and budget, call us today at 855-771-4051. In this guide, I’ll walk you through the most important steps to save money—without cutting corners.
When Is the Best Time to Buy a New HVAC System?
HVAC systems are typically cheapest during the off-season months—spring and fall. Contractors often offer discounts during these slower periods, and you won’t have to compete for installation scheduling like you would during peak summer or winter months.
If you’re not facing an emergency replacement, timing your upgrade for the off-season could save you hundreds or even thousands of dollars on both the system and labor.
What Type of HVAC System Offers the Best Value?
The most cost-effective HVAC systems offer a combination of reliability, efficiency, and compatibility with your home. Some of the best-value systems include:
- Dual-stage or variable-speed systems, which save energy by adjusting output.
- Heat pump systems, which offer both heating and cooling in one unit.
- High-SEER central AC systems, which reduce energy bills over time.
Make sure your system isn’t over- or under-sized. An HVAC unit that’s too large will cycle frequently and waste energy, while one that’s too small will run constantly and still not deliver comfort.
How Can I Compare HVAC Quotes Effectively?
Don’t settle for the first estimate. Get at least three detailed quotes from local, licensed HVAC contractors. A high-quality estimate should include equipment brand and SEER rating, model number and unit size, labor costs and installation timeline, warranty coverage, and details on removal of old equipment. Avoid vague quotes or pressure tactics. A reputable contractor will be transparent, educational, and willing to answer all your questions. Additionally, companies should provide written quotes to guarantee their pricing.
Are There Rebates or Tax Credits Available in Minnesota?
Absolutely. Minnesota homeowners can benefit from various rebate programs, including federal tax credits through the Inflation Reduction Act (up to $2,000 for qualified heat pumps), Xcel Energy and CenterPoint Energy rebates for high-efficiency systems, and state and local incentives for energy audits and efficiency upgrades. At Neighborhood, we help customers identify and apply for all available rebates, simplifying the process. Higher-priced, high-efficiency furnaces often qualify for better rebates, making them a smart investment.
Congress occasionally offers tax incentives for Energy Star-certified equipment. Additionally, the U.S. Department of Agriculture provides grants and low-interest loans for seniors 62 and older. HUD offers Title I loans for home improvements, including HVAC systems. The Federal Low Income Home Energy Assistance Program (LIHEAP) assists low-income households with heating and cooling costs. Some philanthropic organizations also offer one-time grants for emergency HVAC-related expenses. Entry-level or lower-efficiency systems typically have limited rebate options.
How Much Should a New HVAC System Cost?
Pricing can vary widely based on system type, home size, ductwork needs, and brand. Here’s a general range: Installing ductwork can add an additional $1,000 to $2,700 for materials and labor. The overall cost for a new HVAC unit could reach $22,000 if new ductwork and additional features are added. Different brands of HVAC systems have unique costs, with more energy-efficient models generally being more expensive. An HVAC replacement involves multiple costs including removal, installation, hardware, and thermostats.
Average HVAC System Costs
- Basic Central AC or Furnace: $4,500–$7,000
- High-Efficiency Central System: $7,000–$12,000
- Ductless Mini-Split System (per zone): $3,000–$5,000
- Heat Pump System: $8,000–$14,000
Note: The average HVAC replacement cost is $7,500.
Note: Prices for HVAC replacements can range from $5,000 to $12,500 depending on the type and size of the unit.
Note: These are average Minnesota prices as of 2025. For an accurate quote, schedule a free estimate.
What Mistakes Should I Avoid When Shopping for a New HVAC System?
Many homeowners make the mistake of choosing the cheapest bid, which often results in poor installation and short system lifespan. Another common error is failing to verify the contractor’s credentials. Always check licenses, reviews, and insurance. Homeowners also often ignore SEER ratings and overlook warranty options. A comprehensive home evaluation should always be part of the installation process, including inspection of ductwork and airflow.
Labor costs for installing an HVAC unit are around $1,500 on average, so ensure this is factored into your budget. Paying in cash can sometimes lead to a lower price on HVAC installations due to merchant fees avoided. Additionally, installing multiple HVAC units at the same time can lead to discounts on labor costs. Military aid societies assist active-duty military and veterans with the cost of HVAC repair and replacement.
What Role Does HVAC Maintenance Play in Value?
Long-term value goes beyond the initial purchase. Routine maintenance ensures peak performance, extends equipment life, and helps prevent costly repairs. Tune-ups also allow HVAC professionals to spot issues early, improving safety and system reliability. Some contractors include multi-year maintenance packages, which add value and peace of mind to your investment.
How Do I Know If Financing Options Are Legitimate?
Proper sizing, professional installation, and high-efficiency components are key. But homeowners can also maximize efficiency by sealing air leaks, upgrading insulation, and using programmable thermostats. Financing options, including loans approved within 24 hours, can make these upgrades more accessible. Most homeowners do not have the money on hand to pay for an HVAC system in full, making financing one of the best options. Closing vents or blocking airflow can hurt efficiency—so be sure your home is balanced and well-ventilated.
Can Smart Thermostats Improve Efficiency?
Yes. Smart thermostats allow for precise temperature control, energy usage monitoring, and programmable schedules. Some can even learn your patterns and adjust automatically to save energy. Installing one can increase overall system efficiency and reduce utility bills. Many utility providers also offer rebates on eligible models. Additionally, many HVAC companies offer financing options for their customers, often at a lower interest rate than when paying with a credit card.
How Do I Maximize the Efficiency of My New HVAC System?
Proper sizing, professional installation, and high-efficiency components are key. But homeowners can also maximize efficiency by sealing air leaks, upgrading insulation, and using programmable thermostats. Closing vents or blocking airflow can hurt efficiency—so be sure your home is balanced and well-ventilated.
Call the HVAC Experts at Neighborhood
Upgrading your HVAC system doesn’t have to be overwhelming—or overpriced. At Neighborhood Plumbing, Heating, Air & Electric, we’ve served Minnesota homes for decades with expert installation, honest pricing, and unmatched support. Scheduling an in-home visit for a quote ensures accurate estimates tailored to your HVAC needs. Home equity loans can be a lower-cost financing option because they use the home to secure the debt. Interest rates for HVAC financing loans are typically about 13.5 to 19.5 percent.
Call us today at 855-771-4051 to schedule a free in-home estimate and learn how much you can save on a new HVAC system that keeps your family comfortable year-round.
Resources
- U.S. Department of Energy – HVAC Efficiency Standards
- ENERGY STAR – HVAC Buying Guide
- Xcel Energy – Minnesota Rebates
- DSIRE – State Incentives for Efficiency
- Should I Repair or Replace My Cooling System?
FAQs
What is the best month to buy a new HVAC system?
Spring and fall are ideal because demand is lower, which means more discounts and faster installations. For air conditioners specifically, the best time to buy is from March to May. The best time to buy a new heating system is from late September to November.
How long should a new HVAC system last?
With proper maintenance, most systems last 15–20 years, though geothermal and ductless units may last even longer.
Does SEER rating affect price?
Yes, higher SEER ratings usually mean higher upfront costs but lower operating costs over the system’s lifespan.
Should I replace my furnace and AC together?
If both are old or inefficient, replacing them together ensures compatibility and can qualify you for better bundle rebates.
Can I negotiate with HVAC contractors?
Yes. Many contractors have some pricing flexibility or can offer added value like maintenance plans or thermostat upgrades.
Do smart thermostats really save money?
Yes. Smart thermostats can reduce energy use by adapting to your habits and allowing remote access, often saving 10–20% on bills.
Is it worth upgrading insulation before replacing my HVAC system?
Yes. Better insulation reduces the load on your HVAC system, allowing for smaller, more efficient equipment and lower energy costs.
How do I choose the right size HVAC unit?
Professional contractors use Manual J load calculations to determine proper sizing. Avoid guesses—oversized or undersized systems waste money.
