How Much Does Air Conditioner Installation Cost in 2025? A Homeowner’s Guide

lebnick4
May 16
3 min read

Thinking about installing a new air conditioner? Whether you're upgrading an old unit or installing one for the first time, understanding the cost of AC installation is an important part of planning.

In this guide, we’ll break down what you can expect to pay for a new AC system in 2025, what factors affect the price, and how to get the best value for your investment.

💲 Average Cost to Install an Air Conditioner

In Canada—especially in the Greater Toronto Area (GTA)—the average cost to install a central air conditioner typically ranges between:

👉 $3,500 and $7,500 (CAD)

This includes both the unit and professional installation. However, prices can vary depending on the type of system, the size of your home, and specific installation requirements.

🔧 Factors That Affect AC Installation Costs

Let’s look at the key factors that can impact your total cost:

1. Type of System

Central Air Conditioner: Most common option for full-home cooling.
- Cost: $3,500 – $7,500
Ductless Mini-Split System: Ideal for homes without ductwork.
- Cost: $3,000 – $6,000 per zone
Window or Portable Units: Affordable but not ideal for long-term use.
- Cost: $300 – $1,200 (DIY install)

2. AC Unit Size (Tonnage)

Air conditioners are sized based on how much space they need to cool. Larger homes require larger units (measured in tons), which cost more.

1.5 – 2 Ton: Small homes or condos – less expensive
2.5 – 3 Ton: Average-sized home (1,500–2,000 sq. ft.)
3.5 – 5 Ton: Large homes – higher upfront and energy costs

✅ Tip: A professional load calculation ensures you get the right-sized system—not too big, not too small.

3. Efficiency Rating (SEER)

Higher efficiency = lower energy bills, but higher upfront cost.

Standard SEER (13–16): More affordable
High-Efficiency SEER (17+): More expensive but better long-term savings

4. Ductwork Condition

If your home already has ductwork in good shape, installation will cost less. If ductwork needs repairs or upgrades, that could add $1,000 to $3,000+ to the total.

5. Installation Complexity

Things like tight attic spaces, electrical upgrades, or older homes can increase labour time and cost.

💡 Optional Add-Ons

Some homeowners choose to bundle extras like:

Smart thermostat ($200–$500)
Air purification or UV filters ($500–$1,500)
Zoning systems for multi-level homes

✅ Government Rebates & Incentives

In Ontario, there may be rebates available for high-efficiency AC units, especially if you’re upgrading an old system or bundling with a heat pump.

Check current rebates through:

Enbridge Gas
Canada Greener Homes Initiative
Local utility programs

These rebates can help reduce your cost by $250 to $5,000+, depending on the system and eligibility.

🛠️ Should You DIY?

While installing a window unit or portable AC is a DIY-friendly project, installing a central air conditioner is a job for licensed HVAC professionals. A proper install ensures:

System efficiency
Warranty protection
Safety and code compliance

📌 Final Thoughts

Air conditioner installation is a major investment—but it pays off in comfort, energy savings, and home value. For most homeowners in the GTA, you can expect to pay between $3,500 and $7,500 for a complete central AC installation, with options to fit a range of budgets and home types.

Need a quote?If you're considering a new AC unit, reach out to a trusted local HVAC contractor for a free in-home estimate. They’ll assess your home, recommend the right system, and give you an accurate price—including any rebates you might qualify for.

Stay cool and make an informed choice!