Only you can determine if your budget is better suited to repair or replace. We are here to provide information so that you can make an informed decision. Typically a small system that has a relatively simple replacement without ducts starts around $8k and up.
The national average for HVAC system life is around 15 years. In Northern California Valley with triple digit summers and the heat strain on your system usually reduces the lifespan below the national average.
Repair costs considered in light of the life remaining on your system might make replacement a wiser option. Typically, if your heating and air conditioning system is over 10 years old and it needs a major repair, e.g., compressor failure, cracked furnace heat exchanger, vandalized outdoor coils, refrigerant leak with old R-22 freon; then it might not make sense to repair. It is best to calculate the return on investment (ROI) in your specific situation.
Upgrading to higher efficiency means you are using less energy to operate and save money on utility bills.
Compare a 20 year old system and around 2000 square foot home, replaced with a new high efficiency 16 SEER heat pump system. It typically will save you around 35% annually on your electric bill in Sacramento. Typically a 95% AFUE high efficiency gas furnace will save around 30% in the gas utility bills.
Length of time you plan to remain in your home. Your return on investment when you replace increases the longer you plan to stay in your home.
Before you pay full price for the new HVAC system, consider looking into the kind of rebate incentives does your utility company can provide and what kind of federal subsidies or credits could you qualify for. Keep in mind that today’s incentives can quickly expire tomorrow.