When your air conditioner stops working as it should, you’re faced with a big decision: Should you repair the existing unit or replace it with a new one?
It’s a common dilemma for homeowners and businesses alike, and making the wrong choice can cost you time, money, and comfort.
In this guide, we’ll walk you through the key factors to consider so you can make an informed decision that fits both your cooling needs and your budget.
1. Understand the Age of Your AC Unit
One of the first questions to ask is, How old is your AC?
Under 5 Years: If your air conditioner is relatively new, repairs are usually the best choice. Most issues at this stage are minor and can be fixed without major costs.
5–10 Years: This is the gray zone. You need to weigh the cost of repair against the potential benefits of a newer, more energy-efficient model.
Over 10 Years: Older units tend to require frequent repairs and operate less efficiently. If your AC has reached or exceeded its expected lifespan, replacement often makes more financial sense.
Tip: Keep a record of your unit’s installation date and repair history to help track its performance over time.
2. Compare Repair Costs vs. Replacement Costs
A general rule many technicians use is the “50% Rule”:
If the cost of repairs is more than 50% of the price of a new system, replacement is usually the smarter choice.
3. Look at Energy Efficiency
Air conditioning technology improves every year. Older models often use more power to produce the same level of cooling.
If your electricity bills have been creeping up, it might not just be because of hotter weather — your AC could be losing efficiency.
Benefits of a new AC installation:
Lower monthly electricity bills
Reduced carbon footprint
Consistent cooling performance
Advanced features like programmable settings and better air filtration