PhillyHomeCosts

HVAC Replacement Cost in the Philadelphia Area

What HVAC replacement costs (national benchmarks)

We couldn't find any credible, published survey of installed HVAC prices for Philadelphia, the Pennsylvania suburbs or South Jersey. The figures below are national ranges from Angi and HomeGuide, not local quotes. The sources disagree, sometimes within the same site, so treat them as a rough starting point and get several written quotes. We'll add local prices only once we've collected real written quotes, and we'll label them.

System Angi (national) HomeGuide (national) Source
Central AC only (replacement) $5,978 average for AC replacement of any type; most pay $3,887–$8,073 $2,500–$7,500 including installation labor (HVAC cost page); $5,300–$10,500 installed (AC installation page) Angi AC; HomeGuide HVAC; HomeGuide AC
Gas furnace only $4,814 average for a new furnace installation (Angi doesn't break the average out by fuel); most pay $2,823–$6,897. Natural gas: $3,800–$10,000 installed Gas furnace replacement $3,800–$12,000 Angi furnace; HomeGuide HVAC
Gas furnace + central AC (full split system) $7,500 average; often $5,000–$12,500 $5,000–$11,000 installed (HVAC cost page); $10,500–$18,500 installed (AC installation page) Angi furnace + AC; HomeGuide HVAC; HomeGuide AC
Full system with new ductwork $8,500–$19,200 ("Full HVAC Installation With Ductwork"); up to $22,000 with ductwork and extras $7,000–$16,000; $9,500–$18,500 with ductwork and add-ons Angi HVAC; HomeGuide HVAC
Packaged heating and air system $10,000–$14,000 No separate range Angi furnace + AC
Hybrid system $2,500–$10,000 ("Hybrid systems"; Angi doesn't describe the setup in this table) No range given Angi furnace + AC

Sources: Angi HVAC replacement cost (updated Oct 30, 2026), furnace and AC replacement (updated Oct 29, 2026), AC replacement cost (updated Oct 22, 2026) and new furnace cost (updated Sep 8, 2026); HomeGuide HVAC cost (updated Aug 27, 2025) and AC installation cost (updated Jul 25, 2025). All confirmed on the pages as of Oct 30, 2026. National figures, not Philadelphia prices.

Where the sources conflict:

  • HomeGuide disagrees with itself. Its HVAC cost page puts a furnace-plus-AC replacement at $5,000–$11,000 installed and a central AC unit at $2,500–$7,500. Its AC installation page puts an "HVAC system cost (furnace and AC)" at $10,500–$18,500 installed and a central AC at $5,300–$10,500 installed. The HVAC cost page says its unit ranges include installation labor. We couldn't tell why the two pages differ.
  • Angi's furnace pages disagree with each other. Its furnace cost article gives a $4,814 average; its repair-or-replace article says "$5,500" on average. The same furnace cost article also has a size table ($1,200–$2,000 installed for a 1,000 sq ft home) that sits well below its own $2,823–$6,897 range, so we don't use that table.
  • The averages are close, the ranges aren't. Angi's $7,500 furnace-plus-AC average and HomeGuide's $8,000 national average for an HVAC system are close. The top of the ranges differs much more.
  • What's included: Angi's HVAC calculator lists about $1,500 for installation labor and a $250–$400 permit on top of a $3,900–$7,900 central air system. Neither source fully itemizes what its ranges include, so compare quotes line by line.

Replacing both at once: Angi says replacing a furnace and AC together "is often less than purchasing each system separately at different times." HomeGuide says to replace both "if the furnace is over 15 years old or if upgrading to a more efficient AC with a higher SEER" rating, and that replacing the outdoor AC unit "without replacing the indoor furnace blower motor results in lower efficiency and may cause premature system failure" (both as of Oct 30, 2026).

Cost by size (tonnage and BTUs)

Central AC by tonnage (national):

AC size HomeGuide, installed (national) Angi (national) Source
1.5 tons $4,700–$6,500 $1,300–$4,000 HomeGuide AC; Angi AC
2 tons $5,000–$6,800 $1,500–$5,000 HomeGuide AC; Angi AC
3 tons $5,800–$7,800 $2,000–$5,500 HomeGuide AC; Angi AC
4 tons $6,500–$8,800 $2,600–$6,200 HomeGuide AC; Angi AC
5 tons $7,000–$9,500+ $2,800–$6,800 HomeGuide AC; Angi AC

Sources: HomeGuide AC installation cost (updated Jul 25, 2025) and Angi AC replacement cost (updated Oct 22, 2026), as of Oct 30, 2026. National figures. HomeGuide's figures are "For basic installation; Not including ductwork modifications or replacement." Angi labels its column "Average Cost in 2026" and doesn't say whether it includes installation; its range for a central AC unit alone is $2,500–$4,500, so we read this table as mostly equipment cost (our reading).

Gas furnace by home size (national):

Home size (BTUs) HomeGuide, installed (national) Source
Up to 1,200 sq ft (40,000–50,000 BTU) $3,800–$6,700 HomeGuide gas furnace
1,200–1,600 sq ft (50,000–60,000 BTU) $4,200–$7,200 HomeGuide gas furnace
1,600–2,000 sq ft (60,000–70,000 BTU) $4,700–$8,000 HomeGuide gas furnace
2,000–2,500 sq ft (70,000–90,000 BTU) $5,100–$9,500 HomeGuide gas furnace
2,500–3,000+ sq ft (90,000–120,000 BTU) $5,800–$12,000 HomeGuide gas furnace

Source: HomeGuide gas furnace prices (updated Dec 31, 2025), as of Oct 30, 2026. National figures, "Not including ductwork modifications or replacement." Angi's furnace cost table ("Not Including Labor") runs $2,000–$4,500 for 40,000–60,000 BTU up to $4,000–$8,000 for 120,000–140,000 BTU (Angi HVAC).

Size comes from a load calculation, not square footage alone (as of Oct 30, 2026). HomeGuide's HVAC page gives rules of thumb of 16–30 BTUs per square foot for an air conditioner and 25–50 for a furnace; its gas furnace page and Angi's furnace article both say 30–60 for furnaces. Both rules of thumb are national and broad. HomeGuide says to "Hire a licensed contractor to perform a Manual J Load calculation" that accounts for climate, insulation, layout and windows.

Cost by efficiency (SEER2 and AFUE)

Central AC by efficiency (national, installed):

Efficiency HomeGuide, installed (national) Source
13–14 SEER (up to 13.4 SEER2) $5,300–$7,900 HomeGuide AC
15–16 SEER (14.0–14.7 SEER2) $6,700–$9,300 HomeGuide AC
17–18 SEER (15.0–17.2 SEER2) $7,500–$10,600 HomeGuide AC
19–21 SEER (16.5–18.5 SEER2) $9,100–$12,200 HomeGuide AC
22–26 SEER (up to 25.8 SEER2) $11,400–$17,300+ HomeGuide AC

Gas furnace by efficiency (national):

Efficiency HomeGuide, unit only (national) HomeGuide, installed (national) Source
80%–89% AFUE $700–$1,800 $3,800–$6,200 HomeGuide gas furnace
90%–95% AFUE $1,500–$3,700 $5,200–$8,800 HomeGuide gas furnace
96%+ AFUE $2,800–$6,200 $7,500–$12,000 HomeGuide gas furnace

Sources: HomeGuide AC installation cost (updated Jul 25, 2025) and gas furnace prices (updated Dec 31, 2025), as of Oct 30, 2026. National figures. HomeGuide's furnace table is "Not including ductwork modifications or replacement." HomeGuide's SEER2 bands overlap (for example, 15.0–17.2 and 16.5–18.5); we show them as published.

Federal minimums and rule changes (as of Oct 30, 2026):

  • Central AC: federal rules set a minimum of 13.4 SEER2 for split-system air conditioners made on or after January 1, 2023. Higher minimums apply only in the Southeast and Southwest regions, which don't include Pennsylvania or New Jersey (the Southeast list does include Delaware) (10 CFR 430.32).
  • Gas furnaces: the current federal minimum for non-weatherized gas furnaces is 80% AFUE. A 2023 Department of Energy rule raises it to 95% AFUE for non-weatherized gas furnaces made on and after December 18, 2028 (10 CFR 430.32; DOE consumer furnaces). On April 27, 2026, DOE published a notice that gas industry groups had petitioned it to change that compliance date, and asked for comment (Federal Register 2026-08145). We couldn't confirm whether DOE has acted on the petition, so check before you assume the 2028 date will hold.
  • Refrigerant: the EPA says homeowners "can maintain and repair their systems throughout the useful life of the equipment," including replacing a faulty condensing unit or indoor coil "with a similar R-410A component." It treats replacing both the condensing unit and the indoor coil together as a new system, which after January 1, 2026 "must use lower-GWP refrigerant" (EPA HFC FAQ). A May 2026 EPA final rule "Removes the January 1, 2026, installation compliance date" for residential AC systems "domestically manufactured or imported into the U.S. before January 1, 2025," allowing "pre-2025 inventory of air conditioning systems to be installed until supply runs out" (EPA fact sheet; EPA regulatory actions). The FAQ doesn't mention the May 2026 rule. HomeGuide says that if your old system uses R-22 or R-410A, "you can't replace just the outdoor unit"; that's broader than what the EPA FAQ says. Ask installers which refrigerant the new system uses and whether the quote replaces the indoor coil.

Efficiency and savings (as of Oct 30, 2026): ENERGY STAR says certified gas furnaces in the northern half of the U.S. can be "up to 18 percent more energy efficient than baseline models and can save $160 a year" (ENERGY STAR furnaces). That's a national figure; we found no source on savings at PGW or PECO gas rates.

Ductwork and other add-ons

Add-on or factor National range Notes Source
Ductwork replacement $1,400–$5,600 (average $3,500); $25–$55 per linear foot New ductwork for a house without ducts: $2,400–$6,600. Angi's furnace article: new ductwork about $2,000–$5,000 HomeGuide ductwork; Angi furnace
Ductwork, by location Basement $1,800–$3,100; attic $2,200–$5,600; crawl space $3,000–$7,300 HomeGuide ductwork
Ductwork modifications for a new AC $3,000–$7,500 Angi: "If your project requires ductwork modifications, budget an additional" amount Angi AC
Duct sealing $400–$1,900 manual; $1,300–$2,700 Aeroseal HomeGuide ductwork
Asbestos Testing $250–$700; removal $700–$2,200 (ductwork page table). Angi: $1,200–$3,100 The same HomeGuide ductwork page's text says testing costs $250–$850 and removal $10–$25 per square foot. HomeGuide's HVAC page says asbestos removal "may be required in homes built before 1986" HomeGuide ductwork; Angi HVAC
Removing old equipment $100–$200 (HomeGuide HVAC); $150–$400 for a furnace, if not included (HomeGuide furnace); $60–$500 (Angi) HomeGuide: "Some contractors include the removal and disposal of an existing furnace in their installation quote" HomeGuide HVAC; HomeGuide gas furnace; Angi HVAC
Zoning $2,000–$6,500 (HomeGuide); $2,000–$3,000 (Angi) Angi's AC page: two zones $1,700–$2,000; four zones $2,400–$3,000 HomeGuide HVAC; Angi HVAC; Angi AC
Thermostat $140–$350 (HomeGuide); $120–$260 (Angi) HomeGuide HVAC; Angi HVAC
Whole-house humidifier / dehumidifier $400–$1,200 / $1,500–$3,500 HomeGuide HVAC
New gas line (switching to gas) $15–$50+ per linear foot, or $350–$2,000 Oil to gas conversion: $3,800–$12,000+ HomeGuide gas furnace
Labor $75–$150 per hour (HomeGuide); about $1,500 per job (Angi) Angi's furnace page: $75–$100 per hour HomeGuide HVAC; Angi HVAC; Angi furnace

Sources: HomeGuide HVAC cost (updated Aug 27, 2025), ductwork (updated Dec 19, 2025) and gas furnace prices (updated Dec 31, 2025); Angi HVAC replacement (updated Oct 30, 2026), AC replacement (updated Oct 22, 2026) and new furnace cost (updated Sep 8, 2026). All as of Oct 30, 2026. National figures, not Philadelphia prices.

How long the job takes (as of Oct 30, 2026): HomeGuide says installing an HVAC system "takes 1 to 2 days on average if using the existing ductwork or 3 to 5 days if installing new ductwork."

What drives the price

From HomeGuide and Angi, as of Oct 30, 2026 (national sources):

  • System type and how many pieces you replace. A furnace or AC alone costs less than both together (see the first table).
  • Size. Larger homes need more capacity; the right size should come from a load calculation.
  • Efficiency. Higher SEER2 and AFUE ratings cost more up front (see the efficiency tables).
  • Ductwork. HomeGuide says "Most furnace replacements can use the existing HVAC ductwork, although sometimes modifications or replacements are necessary to optimize performance."
  • Where the indoor unit goes. Angi lists $1,000–$2,500 to build a space for an indoor unit in a utility closet, attic or basement.
  • Brand. Angi lists Amana or Coleman at about $3,000, an average of $4,750, and Trane and York at $6,000 or more.
  • Location. Angi says labor rates rise "in areas with a higher cost of living or greater demand," and names Maryland, California and Virginia as states where a new furnace costs at least $5,000. It doesn't give a Pennsylvania or New Jersey figure.
  • Fuel switching. Converting from oil to gas, or adding a new gas line, adds cost (see the add-ons table). If you're replacing a gas water heater at the same time, our water heater guide covers its venting and gas line costs.

Permits: Philadelphia, the Pennsylvania suburbs and New Jersey

Where Permit or fee Key requirement Source
Philadelphia: L&I Mechanical Permit $69 per appliance (if submitted separately), or $69 per warm air heating apparatus connected to a flue or chimney, in one- or two-family homes; $189 flat fee for new ductwork in one- or two-family homes; fuel gas work 2% of contract costs (minimum $189) A licensed contractor must do all work. EZ permits (no plans) cover new installations and appliance replacements in one- or two-family homes L&I Get a Mechanical Permit
Philadelphia: L&I Electrical Permit $25 per $1,000 (or fraction) of estimated electrical construction cost; $63 minimum Licensed electrical contractor; the owner or the owner's agent "must hire a licensed electrical inspection agency to perform all inspections" L&I Get an Electrical Permit
Philadelphia: filing fee and surcharges $100 filing fee per permit; $3 city + $4.50 state surcharges The filing fee is credited toward the final permit fee L&I Mechanical; L&I Electrical
Pennsylvania suburbs (Uniform Construction Code) Set locally; we couldn't confirm fees A permit is required to "install … convert or replace an electrical, gas, mechanical or plumbing system regulated by the Uniform Construction Code" 34 Pa. Code §403.62
New Jersey Set by the local enforcing agency; we couldn't confirm fees Replacing warm air furnaces, air conditioning units and condensing units "with new appliances of like capacity" is "minor work" N.J.A.C. 5:23-2.17A

Sources: City of Philadelphia L&I permit pages; 34 Pa. Code §403.62; N.J.A.C. 5:23-2.17A (via Cornell LII). All as of Oct 30, 2026. National permit estimates for comparison: HomeGuide $100–$250 for an HVAC replacement and $250–$1,500 for a new install with ductwork; Angi $50–$500 (HVAC page) and $400–$1,500 for a furnace (HomeGuide HVAC; Angi HVAC; Angi furnace). HomeGuide says "Contractors typically include permit fees in the estimate."

Philadelphia details (as of Oct 30, 2026):

  • Mechanical Permit: you need one "to install devices regulated by the Philadelphia Mechanical and Fuel Gas Codes," including "Heating, venting, and air conditioning," "Ductwork" and "Equipment and piping that use natural gas." You don't need one for "Ordinary repairs or maintenance to mechanical systems." The contractor must have an active license, be current on all City of Philadelphia taxes and have current insurance on file with L&I. "Sheet metal work must be performed by a registered sheet metal technician or apprentice employed by the contractor" (L&I Mechanical).
  • Electrical Permit: L&I's mechanical permit page says "If any component of the system requires electrical power you need an Electrical Permit" (L&I Mechanical).
  • Which fee applies: L&I lists several fee lines that could apply to a furnace and AC swap (per appliance, per warm air heating apparatus, fuel gas work). It doesn't say which ones a typical replacement triggers, so we couldn't confirm the total permit cost. We also couldn't confirm what a licensed electrical inspection agency charges.
  • Codes: from July 1, 2026, Philadelphia's Mechanical Code is the 2021 International Mechanical Code with local amendments (L&I applicable codes).

Pennsylvania suburbs (Bucks, Montgomery, Delaware and Chester counties; as of Oct 30, 2026):

  • Emergencies: "An emergency repair or replacement of equipment may be made without first applying for a permit if a permit application is submitted to the building code official within 3 business days of the repair or replacement" (§403.62(b)). That matters if your furnace fails in January.
  • Licensing: Pennsylvania has "no licensure or certification requirements for most construction contractors," and some of its 2,562 municipalities license trades locally (PA Labor & Industry).

New Jersey (as of Oct 30, 2026):

  • Minor work: notice must be given "before work commences," and the permit application is due "within five business days from the date of the notice." Minor work also includes "new electrical work incidental to the installation of air conditioning" in one- and two-family homes (N.J.A.C. 5:23-2.17A).
  • No permit for some repairs: ordinary maintenance, which needs no permit, includes "Repair of air conditioning equipment and systems" and "Repair and replacement of duct work" (N.J.A.C. 5:23-2.7).
  • Licensing: New Jersey's HVACR licensing law says "A person shall not work as a Master HVACR contractor … unless licensed." It exempts "a single family home owner who personally occupies his own dwelling and who solely performs HVACR work on his own dwelling, upon receipt of all required permits," except work involving CFCs or HCFCs (P.L.2007, c.211, as enacted Dec 20, 2007; we didn't check later amendments).

How long systems last, and repair vs. replace

Lifespan (national, as of Oct 30, 2026):

Equipment HomeGuide Angi Source
Gas furnace 15–30 years (HVAC page); 15–25 years (gas furnace page) 15–20 years (furnace + AC article); "about 20 years on average" (furnace cost article); 15–30 years "when maintained well" (repair-or-replace article) HomeGuide HVAC; HomeGuide gas furnace; Angi furnace + AC; Angi furnace; Angi repair or replace
Central AC 15–20 years 12–15 years HomeGuide HVAC; Angi furnace + AC
Heat pump 10–20 years Not in these articles HomeGuide HVAC

When the sources say to consider replacing (as of Oct 30, 2026):

  • ENERGY STAR: "If your HVAC equipment is more than 10 years old or not keeping your house comfortable, have it evaluated by a professional HVAC contractor." It also says to address "the big air leaks in your house and the duct system" before investing in a new system (ENERGY STAR).
  • HomeGuide (national) suggests replacing when the system "is more than 10 years old," when "The repair cost is at least 50% of the price of a new system," or when "The repair cost multiplied by the system's age in years exceeds $5,000." Its AC page adds systems that still use R-22 or R-410A refrigerants.
  • Angi (national) uses a lower repair-cost bar for furnaces, though a higher age cutoff: its repair-or-replace article says repairs of "30% or More of Replacement Costs," or "around $1,500 to $2,000," are a benchmark, and calls 15 years "a good cutoff." The same article says replacing "usually makes sense when repairs exceed $2,000, your unit is 10 years or older," and its furnace cost article mentions furnaces "over 18 years old and having problems."
  • Where they differ: HomeGuide's 50% rule and Angi's 30% rule give different answers for the same repair bill (our reading). Neither is a Philadelphia-specific rule. Use them as a starting point and ask for the repair quote and replacement quote in writing.
  • Carbon monoxide: Angi says that if you suspect a carbon monoxide leak, "leave your home immediately" and call the fire department before thinking about repair or replacement.

Example (our arithmetic, using HomeGuide's rule): a 12-year-old system with a $500 repair gives 12 × $500 = $6,000, which is over HomeGuide's $5,000 threshold. The same repair on a 6-year-old system gives $3,000. This is an illustration only, not a recommendation for your system.

Should you get a heat pump instead?

If you're replacing central AC, a heat pump is the main alternative. ENERGY STAR says that if "you have a relatively new furnace with an older central AC," a certified heat pump "creates a dual-fuel system for a modest extra cost over an AC system" (ENERGY STAR air-source heat pumps, as of Oct 30, 2026). HomeGuide's national comparison puts a heat pump at $3,800–$8,200 and a furnace at $2,000–$5,400+, with heat pumps lasting 10–15 years and furnaces 15–30 years (HomeGuide heat pump vs. furnace, updated Oct 20, 2025). The same page's text gives much higher installed figures: a heat pump at $10,000 to $25,000+ with installation and a furnace at $3,500 to $7,500+ for materials and labor with existing ductwork, so its table and text disagree. We found no source comparing running costs at PECO or PPL electric rates with PGW or PECO gas, so we can't say which costs less to run in your home.

Our heat pump installation cost guide covers heat pump prices, cold-weather performance and heat pump rebates in detail.

Rebates and tax credits

Rebates for central AC come from your electric utility, and rebates for a gas furnace mostly come from your gas utility (PECO and ACE also pay for efficient furnace fan motors). Amounts, tiers and deadlines can change. For full rules, see our PECO and PPL rebate guide. These are the amounts we re-checked on the utilities' own pages and forms today:

Utility Rebate Key requirement Source
PECO: central AC $150 or $200 ENERGY STAR; 15.2–15.9 SEER2 or 16.0+ SEER2, both 12.0+ EER2, "as certified by AHRI" PECO Heating & Cooling; PECO form
PECO: gas furnace $100 or $400 ENERGY STAR, 95–96.9% AFUE ($100) or ENERGY STAR+, 97%+ AFUE ($400); ≤2% air leakage; ECM fan motor; must be the primary heat source; no new construction; application within 90 days of purchase; program term Jan 1 – Dec 31, 2026 PECO gas heating form
PECO: ECM fan motor $50 Air handlers or natural gas furnaces in a home with PECO electric service; propane and oil furnaces not eligible PECO Heating & Cooling; PECO gas heating form
PECO: switching to gas heat $400 New gas heating system must replace a primary oil, propane or electric system; proof of conversion required PECO conversion form
PECO: central AC maintenance $25 Check and charge refrigerant, filters, blower motor, coil PECO Heating & Cooling
PPL: central AC $150 or $175 ($225 or $275 income-qualified) ENERGY STAR certified (PPL's product page); at least 15.2 SEER2 and 12 EER2 for split systems (minimum, $150); 16.3 SEER2 and 12.9 EER2 for $175; under 65 kBTU/h; AHRI whole-system rating; no new construction; submit within 180 days of installation PPL central AC; PPL central AC form
PGW: gas furnace $400 first unit / $250 additional ($800 / $250 for the Affordable EnergySense tier) 95% AFUE PGW EnergySense
Atlantic City Electric: central AC $100 or $200 AHRI-rated, split or single package: at least 15.2 SEER2 and 12 EER2 (Tier 1) or 17 SEER2 and 12 EER2 (Tier 2); your contractor submits ACE HVAC Efficiency Program
Atlantic City Electric: furnace fan / smart thermostat $100 ECM motor / $150 thermostat Thermostat must be ENERGY STAR and installed "as part of an HVAC install" ACE
South Jersey Gas: gas furnace $900 AFUE 95% or higher, replacing a non-condensing furnace with a condensing one; installed January 1, 2025 – June 30, 2027; SJG's page offers rebates when equipment is installed "by a participating contractor"; apply within 120 days of purchase; income-qualified customers may get bonus rebates up to $300 South Jersey Gas rebates; SJG rebate form

Sources: the utilities' rebate pages and forms listed, as of Oct 30, 2026. PECO, PGW and ACE central AC and furnace amounts match our rebate guide. PPL's central AC requirements and South Jersey Gas's furnace rebate also match our rebate guide.

  • PGW funds are limited. On Oct 30, 2026, PGW's page showed "Percentage of Funds Used: 50%," and says rebates are "first-come, first-served."
  • ACE income-qualified bonus: ACE says customers with low to moderate incomes "could be eligible for an additional $300 rebate per qualified equipment."
  • Dual-fuel installs (heat pump plus gas furnace): PECO's gas furnace form says the new gas system "must be the primary or main source of heat." PECO's heat pump form says the heat pump "is considered by this program to be the primary heat source regardless of any supplemental heat source. No other heating source is eligible for a rebate." Read together (our reading), a PECO customer may not be able to claim both on one dual-fuel install. We couldn't confirm how PECO applies this, so ask PECO before you count on both.
  • No federal tax credit for 2026 installs. The 25C energy efficient home improvement credit covered new "Central air conditioners" and "Natural gas, propane, or oil furnaces" (IRS 25C). The IRS says it "will not be allowed for any property placed in service after December 31, 2025" (IRS FS-2025-05, Aug 21, 2025).
  • Watch for outdated tax credit claims. As of Oct 30, 2026, Angi's furnace cost article still says efficient gas furnaces qualify for a credit "through December 31, 2032" worth "up to $600," and HomeGuide's HVAC page says geothermal systems are eligible for a federal credit "through 2033." The IRS page above says otherwise.
  • Pennsylvania HOMES and HEEHR rebates haven't launched. PA DEP says "As of September 2026, DEP is awaiting final DOE approval to launch the Home Energy Rebate programs" (PA DEP).

Financing options

These are programs we found on official or program-administrator pages as of Oct 30, 2026. Terms can change and all are subject to credit approval or eligibility rules.

Program Who Terms Source
KEEP Home Energy Loan (Pennsylvania) Owner-occupied 1–4 unit Pennsylvania homes; work by a NEIF-approved contractor $2,500–$25,000 depending on credit score; 4.99% for 36 months, 6.99% for 60 months or 7.99% for 120 months for applications after July 1, 2025 "or until allocated program funds are exhausted." Furnaces, boilers and central AC are eligible categories PA DEP KEEP; NEIF KEEP
PHFA HEELP (Pennsylvania) Income limits apply (80% of area median income; see PHFA's chart) $1,000–$10,000 at a fixed 1% APR for ten years; "Energy efficient heating or cooling system repairs or replacements" are eligible PHFA HEELP
Restore, Repair, Renew (Philadelphia) Philadelphia homeowners with credit scores above 580 who meet income and other rules 10-year, 3% fixed APR loans of $2,500–$50,000; "HVAC system and water heater repair or replacement" are eligible. Apply through Clarifi PHDC RRR
Atlantic City Electric 0% financing (NJ) ACE customers with an approved rebate 0.00% APR, $2,500–$25,000, through NEIF ACE; NEIF ACE
South Jersey Gas On-Bill Repayment (NJ) Property owners listed on the deed (at least one applicant on the SJG bill); single-family and duplex homes; work by an SJG Participating Contractor $2,500–$25,000 at a fixed 0% APR, repaid on your gas bill over up to 7 years (up to 10 years for income-eligible customers); improvement requirement: "Upgrading from a standard-efficiency non-condensing furnace or boiler to a high-efficiency condensing furnace or boiler." SJG's rebate forms cover installs January 1, 2025 – June 30, 2027 SJG On-Bill Repayment Program; South Jersey Gas

Sources: as listed, as of Oct 30, 2026. Contractor or manufacturer financing isn't covered here; compare its rate and total cost with these programs.

How to get and compare quotes

Sources as of Oct 30, 2026:

  1. Know what you have now: the age of your furnace and AC, your heating fuel, whether the ducts are in good shape, and the name on your electric and gas bills (that decides which rebates apply).
  2. Get at least three written estimates. HomeGuide recommends this and says to "confirm they include equipment of the same size and quality." It also says to "Avoid selecting the lowest quote as quality may suffer."
  3. Ask for a load calculation. HomeGuide recommends a Manual J load calculation by a licensed contractor; ENERGY STAR says the same for heat pumps.
  4. Ask for the AHRI certificate number for the matched furnace, coil and condenser. PECO, PPL and ACE central AC rebates depend on the AHRI rating.
  5. Check registration and the contract. In Pennsylvania, home improvement contractor registration covers "the installation of central heating, air conditioning." Contractors doing $5,000 or more of work a year must register. Contracts over $500 must be in writing and include your right to cancel (PA AG FAQ). In New Jersey, home improvement contracts over $500 must be in writing, and must list the contractor's registration number and license number, and you can cancel before midnight of the third business day after you receive a copy (N.J.S.A. 56:8-151). Our sewer line guide covers both states' rules in full in its "Hiring a contractor" section.

Red flags (sources as of Oct 30, 2026):

  • A large deposit. For Pennsylvania projects over $5,000, the PA Attorney General says "Generally speaking a down payment of one-third of the total contract price or one-third plus the cost of special ordering materials is appropriate" (PA AG FAQ). HomeGuide says "Never pay in full before the project starts."
  • No written contract, or no notice of your right to cancel (see step 5).
  • No registration number in Pennsylvania for a contractor who must register, or no Master HVACR license in New Jersey.
  • A size picked without a load calculation, or a quote that just matches your old unit's size without explaining why (our reading of HomeGuide's and ENERGY STAR's sizing advice).
  • A quote that won't name the equipment, including model numbers, the AHRI certificate and the refrigerant.
  • No permit. In Philadelphia, a licensed contractor must pull the Mechanical Permit (see the permits section). Angi says skipping a required permit "can create problems when you sell your home or file an insurance claim."
  • Tax credit promises. A contractor who says your 2026 install qualifies for the federal 25C credit is relying on outdated information (see the IRS section above).

Questions to ask each installer:

  1. Will you do a Manual J load calculation, and can I see the result?
  2. What's the AHRI certificate number for the furnace, coil and condenser together, and which PECO, PPL, ACE, PGW or South Jersey Gas rebate tier does it meet?
  3. Which refrigerant does the new AC use, and are you replacing the indoor coil?
  4. Do my existing ducts work with this system? Is any ductwork, sealing or line-set work priced separately?
  5. What's the AFUE of the furnace, and does it need new venting?
  6. Who pulls the permits (in Philadelphia, the Mechanical and Electrical Permits and the electrical inspection agency), and are those fees in the price?
  7. Are you licensed for this work (in Philadelphia, an L&I-licensed contractor; in New Jersey, a Master HVACR license)? What's your PA home improvement registration number?
  8. Does the price include removing and disposing of the old equipment?
  9. What are the equipment and labor warranties, and how long does each last?
  10. Will you file the rebates, or give me the paperwork? (PECO's 90-day, PPL's 180-day and South Jersey Gas's 120-day windows count from purchase, installation and purchase, respectively.)
  11. Would a heat pump or dual-fuel system make sense for my house, and what would it cost by comparison?
  12. What's the payment schedule, and how much is due before work starts?

FAQ

How much does it cost to replace a furnace and AC in Philadelphia? We couldn't find local price data. Nationally, Angi gives an average of $7,500 for a furnace and AC replaced together, often $5,000–$12,500. HomeGuide's ranges run from $5,000–$11,000 on one page to $10,500–$18,500 on another. Get several written quotes.

Do I need a permit to replace a furnace or AC in Philadelphia? Yes. L&I requires a Mechanical Permit for "Heating, venting, and air conditioning," and a licensed contractor must do the work. L&I says you also need an Electrical Permit "If any component of the system requires electrical power."

Is there a federal tax credit for a new furnace or AC in 2026? No. The IRS says the 25C credit isn't allowed for property placed in service after December 31, 2025. Utility rebates are still available; see the table above.

Should I replace my furnace and AC at the same time? Angi says replacing both together is "often less than purchasing each system separately at different times." HomeGuide suggests replacing both if the furnace is over 15 years old or if you're upgrading to a more efficient AC. If your furnace is newer, ask about a heat pump instead of a new AC (see the heat pump section above).

How long do furnaces and central air conditioners last? HomeGuide's HVAC page says furnaces last 15–30 years and AC units 15–20 years; its gas furnace page says 15–25 years for furnaces. Angi gives 15–20 years for a furnace and 12–15 years for a central AC in one article, and "about 20 years" for furnaces in another.

Thinking about a project?

If you'd like a quote from a local installer, you can use our quote form. We may be paid by contractors when we refer a job to them. That doesn't change the costs, rules or rebates in this guide, which come from the sources listed below. Learn how we make money.

Sources

All checked Oct 30, 2026 unless noted.