The Repair vs. Replace Question
Your HVAC system stops working, and you’re facing a decision: repair it or replace it? This choice significantly impacts your comfort, budget, and home value. Here’s how to make the right call. Evaluating your system’s condition and watching for key signs that indicate whether repair or replacement is needed are essential steps in making an informed decision.
Before deciding, consider the common reasons for HVAC system failure, such as thermostat problems, tripped circuit breakers, or lack of maintenance.
The 50% Rule of Thumb
If the repair cost exceeds 50% of replacement cost, consider replacing-especially if your system is over 10 years old.
Example:
- Repair estimate: $2,500
- New system cost: $8,000
- System age: 12 years
- Recommendation: Replace
Choosing to repair an old or inefficient system can result in unnecessary expense due to frequent breakdowns and higher operating costs. While repairing may seem to save money upfront, it can actually lead to higher energy bills and future breakdowns, increasing your long-term costs.
HVAC System Age Considerations
Systems Under 10 Years Old
Usually repair unless:
- Major component failure (compressor, heat exchanger)
- Multiple simultaneous failures
- Persistent efficiency problems
- Still under warranty
For systems under 10 years old, simple tasks such as changing the air filter or checking for blockages can often resolve minor issues before considering repair. Homeowners should regularly check and replace the air filter to avoid issues caused by a dirty filter, which can decrease efficiency and lead to a dusty home. Homeowners can also check thermostats and thermostat settings, as a malfunctioning thermostat or misreading thermostats can cause system failures like frequent cycling or failure to turn on.
Systems 10-15 Years Old
Gray area-consider:
- Overall system condition
- Maintenance history (Proper maintenance, including regular inspections, cleaning, and tune-ups, can extend the life of your system and delay the need for replacement.)
- Energy efficiency of current system
- Available rebates for replacement
If your system struggles to maintain a consistent temperature throughout your home, this may be a sign that it’s time to consider replacement.
Systems Over 15 Years Old
Strongly consider replacement:
- Approaching end of typical lifespan (15-20 years)
- Declining efficiency costing you monthly
- R-22 refrigerant (being phased out)
- Modern systems 30-40% more efficient
Systems over 15 years old are at increased risk for major problems that can lead to costly repairs or complete failure. Older systems are also more prone to complex issues that may be costly or difficult to repair.
Component-Specific Guidance
Compressor Failure (AC/Heat Pump)
Cost to repair: $1,500-$3,000
The compressor is the main unit responsible for cooling.
Consider replacement if:
- System is 12+ years old
- Uses R-22 refrigerant
- Overall unit showing age
Repair makes sense if:
- Unit under 8 years old
- Covered by warranty
- Rest of unit in excellent condition
Heat Exchanger Crack (Furnace)
Cost to repair: $1,200-$2,500
Usually recommend replacement:
- Heat exchanger is heart of furnace
- Cracks can indicate carbon monoxide risk. If you notice a smell like rotten eggs, this may signal a natural gas leak, which is extremely dangerous and requires immediate emergency services.
- If one cracks, furnace likely near end of life
- A cracked heat exchanger is rarely worth being repaired due to the safety risks and high costs involved
Blower Motor
Cost to repair: $400-$800
Usually repair:
- Relatively affordable fix
- Doesn’t indicate other problems
- Replacement parts readily available
- Blower motor issues are typically mechanical problems that can be resolved with standard repairs. If you notice strange sounds or unusual noises coming from the blower motor, it may indicate a need for repair.
Capacitor/Contactor
Cost to repair: $150-$400
Always repair:
- Inexpensive fix
- Normal wear-and-tear item
- Quick replacement
- Capacitors and contactors are essential electrical connections that can wear out over time and are usually easy to replace
Refrigerant Leak
Cost to repair: $500-$1,500+ (depending on location)
Consider replacement if:
- Uses R-22 refrigerant (expensive and scarce)
- Multiple leaks or leak in coil
- System is 12+ years old
- The root cause of the leak cannot be easily identified or fixed
Repair if:
- Uses modern refrigerant (R-410A)
- Single accessible leak
- System relatively new
Financial Analysis
Total Cost of Ownership
Don’t just compare repair cost to replacement cost. Consider:
Repair Path:
- Immediate repair cost
- Likely future repairs (aging system)
- Higher monthly energy bills due to increased energy consumption from an aging or inefficient system
- Reduced reliability
- The condition and efficiency of your cooling system, as issues here can lead to higher energy bills and poor performance
Replacement Path:
- Higher upfront investment
- 30-40% lower energy costs
- Warranty protection (5-10 years)
- Increased home value
- Available rebates and tax credits
Need help with the numbers? Use our HVAC Cost Predictor to estimate replacement costs and compare them against ongoing repair expenses.
Bay Area Rebates & Incentives
Federal Tax Credits (2025):
- Up to $2,000 for heat pumps
- Up to $600 for high-efficiency AC/furnace
Local Utility Rebates:
- TECH Clean California: $1,000-$1,500 depending on system
- Peninsula Clean Energy: Additional rebates available
- Silicon Valley Clean Energy: Income-qualified programs
These incentives significantly reduce the true cost of replacement.
Example: Real Bay Area Scenario
Scenario: 14-year-old AC, compressor failed
Repair Option:
- Compressor replacement: $2,800
- R-22 refrigerant top-off: $400
- Total: $3,200
- Likely another repair in 2-3 years
- Monthly bills: $180/month in summer
Replace Option:
- New Carrier 16 SEER Air Conditioner: $7,500
- Federal tax credit: -$600
- PG&E rebate: -$500
- Net cost: $6,400
- 10-year warranty
- Monthly bills: $110/month in summer (saves $70/mo)
Analysis:
- Additional investment: $3,200
- Monthly savings: $70 x 4 months/year = $280/year
- Payback period: 11 years
- Plus: New warranty, reliability, home value increase
To avoid unexpected breakdowns and costly repairs like this, homeowners should schedule regular HVAC maintenance, which is key to keeping your system running smoothly and avoiding future breakdowns.
Warning Signs Your System is Failing
Repair Probably Won’t Help:
- Frequent breakdowns (3+ service calls/year)
- Declining efficiency despite repairs
- Uneven heating/cooling
- Strange noises getting worse
- Visible rust or corrosion
- Short cycling (system turns on and off rapidly)
- Frequent cycling (system repeatedly starts and stops without completing a full cycle)
- Complete system failure (system will not turn on or respond at all)
- System cycles on/off constantly
Repair Should Work:
- Single component failure
- First major issue
- Recent problem (not chronic)
- System otherwise performs well and is otherwise working properly, meeting your comfort needs
The R-22 Refrigerant Factor
Critical consideration for Bay Area homeowners:
R-22 refrigerant was phased out in 2020. If your AC or heat pump uses R-22 (this includes many older air conditioner models):
- Refrigerant now extremely expensive ($100+/lb)
- Supply will continue decreasing
- Any refrigerant-related repair very costly
- Strong case for replacement
Modern systems use R-410A refrigerant:
- Widely available
- More efficient
- More environmentally friendly
Energy Efficiency Gains
Old AC/Heat Pump (10+ years): 10-13 SEER
Modern Standard System: 14-16 SEER
High-Efficiency System: 18-24 SEER
Translation: 30-100% more efficient
Modern systems are designed to operate at peak performance, maximizing comfort and minimizing energy use.
In Bay Area summer cooling costs, this means:
- Old system: $150-200/month
- Modern standard: $100-130/month
- High-efficiency: $70-100/month
Making Your Decision
Choose Repair If:
✓ System under 8 years old
✓ Single component failure
✓ Repair cost under $1,000
✓ Recent maintenance history good
✓ Uses modern refrigerant
With proper care, a recently repaired system can continue to provide reliable service.
Choose Replace If:
✓ System 15+ years old
✓ Multiple or major failures
✓ Uses R-22 refrigerant
✓ Repair costs 50%+ of replacement
✓ Energy bills increasing
✓ Comfort problems (uneven temperatures)
Replacing an aging system helps prevent unexpected breakdowns and costly emergency repairs.
Get an Honest Assessment
Bay Area Climate Control provides free, no-pressure evaluations. We’ll:
- Diagnose the actual problem
- Provide upfront repair pricing
- Compare repair vs. replacement costs
- Calculate potential energy savings
- Explain available rebates and financing
- Give you our honest recommendation
We’re Carrier Authorized Dealers with a repair-first philosophy. We only recommend replacement when it truly makes financial sense for you.
Call (510) 391-5597 or request a free evaluation today.