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When Should You Replace Your AC Unit?

7 Clear Signs It's Time for a New System

August 6, 2025 12 min read

The decision to replace your AC unit is one of the biggest home investments you'll make. With systems costing $5,000-$12,000, you want to time it right – not too early (wasting money) and not too late (suffering breakdowns and high bills).

This guide reveals the 7 unmistakable signs that replacement makes more financial sense than continuing repairs. We'll also cover what to look for in a new system and how to maximize your investment.

The 7 Clear Signs You Need AC Replacement

Sign #1: Your AC Is Over 10-15 Years Old

The average AC lifespan in San Antonio is 10-15 years due to our extreme heat and constant use. After this point:

  • • Efficiency drops 20-40% below modern standards
  • • Parts become harder to find and more expensive
  • • Warranty has expired, leaving you vulnerable to major costs
  • • R-22 refrigerant (in pre-2010 units) costs $150+/pound

Rule of Thumb: If your AC is 12+ years old and needs a repair over $2,000, replacement is smarter.

Sign #2: Energy Bills Keep Rising

If your electric bills increase 10-20% yearly despite similar usage, your AC is losing efficiency. Compare:

Old AC (10 SEER) $450/month summer bill
New AC (16 SEER) $280/month summer bill

Savings: $170/month = $2,040/year

A new efficient system often pays for itself in 5-7 years through energy savings alone.

Sign #3: Frequent Expensive Repairs

Use the "$5,000 Rule": Multiply the repair cost by the age of your unit. If it exceeds $5,000, replace it.

Examples:

  • • 8-year-old AC needs $700 repair: 8 × $700 = $5,600 → REPLACE
  • • 5-year-old AC needs $800 repair: 5 × $800 = $4,000 → REPAIR

Also consider: If you've had 3+ repairs in the past 2 years, replacement is likely cheaper long-term.

Sign #4: Inconsistent Temperatures

Hot spots, cold rooms, and inability to maintain set temperature indicate:

  • • Compressor failing (50% of replacement cost to fix)
  • • System incorrectly sized for your home
  • • Ductwork problems that new systems can overcome

Modern variable-speed systems provide consistent comfort impossible with older units.

Sign #5: Strange Noises or Smells

Serious warning signs requiring immediate attention:

  • • Grinding/metal sounds = Compressor failure imminent
  • • Burning smell = Electrical components failing
  • • Musty odor = Mold in system (health hazard)
  • • Banging/clanking = Major mechanical failure

These issues often cost 40-60% of a new system to repair properly.

Sign #6: Excessive Humidity or Dust

Your AC should control humidity (keeping it 30-50%). High humidity means:

  • • System too large (short cycling)
  • • Evaporator coil problems
  • • Refrigerant issues

Excessive dust indicates leaky ductwork or failing filtration – both addressed with replacement.

Sign #7: R-22 Refrigerant System

R-22 (Freon) was phased out in 2020. If your system uses it:

  • • Refrigerant costs $150-200/pound (vs $30 for R-410A)
  • • A leak repair + recharge can cost $1,500-2,500
  • • Supply is dwindling, prices will only increase

Any R-22 system should be replacement priority #1.

What to Look for in a New AC System

Efficiency (SEER Rating)

  • • Minimum: 14 SEER (required by law)
  • • Recommended: 16-18 SEER
  • • Premium: 20+ SEER

Higher SEER = Lower bills but higher upfront cost

Proper Sizing

  • • 1 ton per 400-600 sq ft (rough estimate)
  • • Oversized = Short cycling, humidity
  • • Undersized = Can't cool, runs constantly

Demand proper load calculation (Manual J)

AC Replacement Cost Breakdown

System Size Our Price Big Company Price
2-ton (1000-1200 sq ft) $4,500-5,500 $7,000-9,000
3-ton (1500-1800 sq ft) $5,500-6,500 $8,500-10,500
4-ton (2000-2400 sq ft) $6,500-7,500 $10,000-12,000
5-ton (2500-3000 sq ft) $7,500-8,500 $11,500-14,000

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