Repair or Replace
While there are many factors that go into deciding to whether to replace a Heating or Cooling System in any particular Home or Businnes, the
main decision points in deciding on repair or replacement are not difficult concepts.
One of the most important factors to consider is simply its age. If you have a system that is more than 10 years old, even if it still
runs dependably, you still might be better off with a new one. The physical life of a system can often be longer than it makes financial
sense to continue to operate it. Well maintained Air Conditioners and Heat Pumps can last 15 years or more, and Furnaces can last even
longer, up to 20 years or more, the problem is that they might consume as much as twice the energy of current systems.
Consider The Example of A System That Currently Needs A Major Repair
Option #1 Repair System
- Cost To Repair System$500.00
- Federal Tax Credit$0.00
- Repair Costs Over Next 5 Years$750.00
- Next 5 Years Energy Costs$5,500.00
- Cost To Replace In 5 Years$7,000.00
- Total Cost Over 5 Years$13,750.00
Option #2 Replace System
- Cost To Replace System$6,000.00
- Federal Tax Credit$-1,500.00
- Repair Costs Over Next 5 Years$0.00
- Next 5 Years Energy Costs$3,025.00
- Cost To Replace In 5 Years$0.00
- Total Cost Over 5 Years$7,525.00
In this example, by waiting 5 years to replace the system, the total cost of ownership increases by $6,625.00 as compared
to replacing now and taking advantage of the current Federal Tax Credit, lower future repairs, and lower future energy costs.