Repair or Replace Your HVAC? Decision Guide | LC Heating & Air

The 50% Rule

The simplest decision framework: if the repair costs more than 50% of a new system, replace it.

New compressor = $2,500–$4,000 → A new system costs $4,500–$8,000
Cracked heat exchanger = $2,000–$3,500 → A new furnace costs $3,000–$6,000
Refrigerant leak repair + recharge = $800–$2,500 → May recur within 1–2 years

These numbers make replacement the clear winner when the repair is major.

Age-Based Decision Guide

0–10 years: Almost always repair. Equipment is well within its lifespan.
10–15 years: Repair if the fix is under $1,500. Consider replacing if it needs a compressor or major component.
15–20 years: Replace unless the repair is minor (capacitor, contactor, thermostat). Efficiency gains from new equipment pay for themselves.
20+ years: Replace. Period. A 20-year-old system runs on obsolete refrigerant (R-22) and wastes 30–50% more energy than modern equipment.

Rebates Make Replacement More Affordable

Current incentives for LA homeowners:

Federal 25C tax credit: Up to $2,000 for qualifying heat pumps and high-efficiency systems
LADWP rebates: $200–$1,500 for ENERGY STAR equipment
SoCalGas rebates: Up to $500 for high-efficiency furnaces
TECH Clean California: Up to $3,000 for heat pump installations replacing gas furnaces

Repair vs Replace Quick Reference

Issue	Repair Cost	Replace Cost	Recommendation
Capacitor/Contactor	$150–$350	—	✅ Repair
Blower Motor	$400–$900	—	✅ Repair (if < 12 yrs)
Refrigerant Leak	$800–$2,500	$4,500–$8,000	⚠️ Depends on age
Compressor	$2,500–$4,000	$4,500–$8,000	❌ Replace (if > 10 yrs)
Heat Exchanger	$2,000–$3,500	$3,000–$6,000	❌ Replace

Frequently Asked Questions

How do I know if I should repair or replace my AC?

Use the 50% rule: if the repair costs more than half of a new system, replace it. Also consider age — if the unit is over 15 years old, replacement is usually more cost-effective.

Is it worth replacing a 15 year old AC?

Yes, if it needs a major repair. A 15-year-old AC likely runs at 10–13 SEER. A new 16 SEER2 system saves $150–$300/year on energy, and current rebates offset $2,000–$4,000 of the replacement cost.

How much does it cost to replace an HVAC system?

A complete HVAC replacement in Los Angeles (AC + furnace or heat pump + coil) costs $7,000–$15,000 installed, depending on size and efficiency. After rebates and tax credits, out-of-pocket can be $5,000–$11,000.