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What’s the Cost of an AC Installation in Texas?

The cost of an AC installation in Texas averages around $6,000. But some homeowners pay as little as $3,000 and as much as $15,000 to install an AC unit.

That’s one heck of a price range, so bear with us while we explain what goes into estimating the cost of an AC install. 

AC installation prices in Texas vary based on these four cost factors:

  1. AC Efficiency
  2. AC Size
  3. Add-ons and upgrades
  4. The contractor

We’ll go into detail about each of these four cost factors in this article. But if you’re ready and rarin’ to get an estimate for an AC install right now, you can always call Evergreen at 254.537.9067, or schedule an estimate online


Cost Factor #1: The Efficiency of the AC

Some AC units are more efficient at cooling homes than others. As AC units increase in efficiency, they also increase in cost.  

AC efficiency is measured by a unit’s Seasonal Energy Efficiency Ratio, commonly called a SEER rating. SEER ratings range from 13 (the lowest) to 22 (the highest). 

In Texas, 14 SEER is the minimum rating an AC unit can have by law. At Evergreen, we install AC units that range between 14 and 21 SEER on average. 

So why would a homeowner want a more efficient AC? A few reasons:

  • The more efficient a unit is, the less you pay in energy bills per month
  • Humidity levels in the home decrease as efficiency increases
  • The entire home stays at the desired temperature (no more rooms that are hotter/colder than others). 

Cost Factor #2: The Size of the AC

Homeowners usually aren’t surprised to hear that the bigger AC units cost more money. 

What they are surprised to hear is that “size” doesn’t refer to an AC’s dimensions, but its cooling “power”, i.e. how much heat it can remove from a space in an hour.

AC power is measured in tons. So when you see a “tonnage” value listed on an AC, that’s a reference to how quickly it can cool a home.

Another surprise for homeowners when we talk about tonnage is that bigger isn’t always better. In fact, it’s much more important to find that perfect “Goldilocks” tonnage number that fits just right with your home. 

Get a unit that’s too small and it’ll never shut off as it works endlessly to cool your home. But if the unit is too big, it’ll cool your home and shut down too fast. That leads to “short cycling,” which can substantially increase energy bills. 

A load calculation will determine how much tonnage an AC needs for Goldilocks perfection. But just for reference for our readers, residential AC units range between two and five tons on average. 

Cost Factor #3: Equipment Add-Ons

The latest AC upgrades and features can add convenience and performance to a new AC unit. While these add-ons don’t come free, they may be worth looking into. 

Some of the most popular AC add-ons include:

  • Smart thermostats: Smart thermostats “learn” your daily schedule and can increase or decrease temperatures based on whether you’re home or not. According to some studies, smart thermostats are saving homeowners up to 15% a year in cooling costs. 
  • Noise-reduction add-ons: Most newer AC units are pretty quiet. But you can reduce that noise even more by adding specialized fan blades and extra insulation around the compressor. 
  • Air Purification: Air filters, dehumidifiers and air purifiers improve air quality and decrease the humidity in the home. These products are usually installed at the same time as the AC unit. 

Cost Factor #4: The Contractor

Equipment costs account for the lion’s share of an AC installation’s price tag. But labor costs still play a significant role in the total price of the installation. 

Importantly, HVAC contractors rarely–if ever–charge the same amount for an AC installation. That can confuse the homeowner, who may want to just go with the cheapest contractor out there. 

Before making a decision based on price however, consider that the price a contractor charges is typically influenced by:

  • Experience: HVAC companies pay good money for technicians with experience. The increases labor costs. But it also means a much smoother installation experience. 
  • Track record: A company with great reviews and testimonials can add peace of mind to homeowners. That is worth a slightly higher price tag for labor. 
  • Certifications & Licenses: It costs money for HVAC companies to stay on top of renewals for licenses and certifications. If a company is licensed and bonded and its techs are NATE certified, that’s a lot of added value the company is providing to its customers. 


We’ll Help You Make Sense of a New AC Installation

Just give us a call at 254.537.9067. Alternatively, you can schedule an appointment online today.

Evergreen Heating & Cooling has been installing AC units in central Texas since 2014. If you’re considering an AC installation in the near future, you can count on us to:

  • Arrive on time within your scheduled appointment window
  • Reduce upfront costs through easy, flexible financing plans
  • Limit homeowner risk with our 100% satisfaction guarantee

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401 South 13th Street,
Waco, TX 76706





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