The repair-or-replace decision is one of the biggest HVAC choices homeowners face. Here is how to evaluate your situation and make a smart decision.
The 50% Rule
A common guideline: if repair costs exceed 50% of replacement cost, consider replacing. However, this simple rule does not capture the full picture.
Factors Favoring Repair
System age under 10 years. Modern systems have 15-20 year lifespans. If your system is relatively young, repair often makes sense.
First major repair. Even expensive repairs may be worthwhile if the system has been reliable.
Component availability. If parts are readily available and the repair is straightforward, repair is often practical.
Overall system condition. If the rest of the system is in good shape, fixing one component makes sense.
Factors Favoring Replacement
System age over 15 years. As systems age, multiple components approach failure. Fixing one component may be followed by another failure soon after.
R-22 refrigerant systems. R-22 (Freon) is phased out and increasingly expensive. Systems requiring R-22 should be replaced rather than repaired.
Declining efficiency. Older systems are significantly less efficient than modern equipment. A new system may pay for itself through energy savings.
Repeated repairs. If you have repaired the system multiple times recently, more failures are likely.
Comfort problems. If the system never quite kept up or had uneven temperatures, replacement offers an opportunity to improve.
Safety concerns. Cracked heat exchangers or other safety issues often justify replacement rather than repair.
The Financial Comparison
Compare total costs over 5-10 years:
Repair scenario: Repair cost plus continued higher operating costs plus likely additional repairs.
Replace scenario: New equipment cost minus utility savings minus potential rebates.
In many cases, especially with older systems, replacement provides better long-term value.
Efficiency Improvements
Replacing a 15-year-old system with a modern high-efficiency unit can reduce energy costs 20-40%. SEER ratings have improved dramatically. An old SEER 10 AC replaced with SEER 18 cuts cooling costs nearly in half.
Bay Area Rebate Programs
Check current utility rebates before deciding. PG&E, BayREN, and local programs often provide significant rebates for efficient equipment, making replacement more attractive.
Get Professional Input
A trustworthy HVAC contractor will give honest advice about repair vs replace. Be wary of anyone pushing replacement without explaining why, or pushing repair on a system that clearly needs replacement.
Get the repair diagnosed and quoted. Then ask about replacement options. Compare the scenarios before deciding.