Deciding whether to repair or replace your air conditioner is one of the biggest HVAC decisions you'll face as a homeowner. Here's a straightforward framework we use with our Denver metro customers.
5 Signs It's Time to Replace
- Age: The average AC lasts 12–15 years in Colorado. If yours is 10+ years old and needing frequent repairs, replacement usually makes more financial sense.
- R-22 refrigerant: If your system uses R-22 (Freon), it's at least 14 years old and refills now cost $100–$200+ per pound. Replacement with a modern R-410A or R-454B system pays for itself quickly.
- Rising energy bills: If your bills keep climbing despite regular maintenance, your system is losing efficiency. Modern 16+ SEER systems use 30–50% less electricity.
- Uneven cooling: If some rooms are cold while others are warm, your system may be undersized or failing. A properly sized new system solves this.
- Repair frequency: If you're calling for repairs more than once per cooling season, replacement is usually cheaper over the next 3–5 years.
What a New AC Costs in Denver
A new central AC in the Denver metro runs $3,500 to $12,000+ installed, depending on tonnage and efficiency rating. The most common system for Denver homes (3-ton, 16 SEER) costs $5,500–$7,000 installed. With 0% financing, that's as low as $79/month.
Colorado-Specific Considerations
Denver's altitude (5,280 ft) and extreme temperature swings put extra stress on AC systems, which can shorten lifespan compared to systems in milder climates. Dry air also accelerates wear on components. Proper sizing at altitude requires a contractor who understands high-altitude HVAC — not every company does this correctly.
2026 Rebates and Credits
If you're replacing, look into the federal 25C tax credit (up to $600 for high-efficiency central AC), Xcel Energy rebates, and Colorado heat pump credits (up to $3,000+ combined if you switch to a heat pump instead of a traditional AC).