Repair or replace your heating and cooling system?
When a contractor tells you a major part has failed, the real question is whether to put money into an aging system or start fresh. There's no single right answer, but there is a sensible way to think about it.
Lean toward repair when
- The system is relatively young and has otherwise been reliable
- The failed part is minor: a capacitor, contactor, motor, sensor or drain
- The part is still under the manufacturer's warranty
- The home is comfortable and energy bills haven't crept up
Lean toward replacement when
- The system is near the end of its expected life and needs a major part (compressor, coil, heat exchanger)
- It needs repeated refrigerant top-offs because of leaks
- It uses R-22, an older refrigerant that has been phased out of production
- Repairs are stacking up year after year
- Some rooms are never comfortable, or humidity is hard to control. Sometimes that's a sizing or duct problem worth fixing during a replacement.
- A gas furnace has a cracked heat exchanger. That's a safety issue.
What's changed recently
- Federal tax credit ended. The federal Energy Efficient Home Improvement Credit (Section 25C), which covered qualifying heat pumps, central air and furnaces, was repealed for installations after December 31, 2025 by the 2025 federal budget law, H.R. 1 (NEFI). Be skeptical of anyone still promising that credit for a 2026 install, and check with a tax professional.
- Refrigerant changes. New residential systems have been moving to lower-impact refrigerants (often called A2L refrigerants). In May 2026 the EPA removed a deadline that would have barred installing older-stock R-410A equipment, and industry groups expect refrigerant prices to keep rising (ACCA). Ask each contractor which refrigerant the system they're quoting uses, and why.
- Utility programs change often. Ask your contractor, and check your electric provider's website, for any current rebates before you sign.
Comparing replacement quotes
| Item | What to ask |
|---|---|
| Sizing | Did they do a load calculation (often called a Manual J), or size it off the old unit? |
| Equipment | Brand, model numbers, efficiency ratings, refrigerant type |
| Scope | Indoor and outdoor units? New line set, thermostat, pad, drain, electrical? |
| Ductwork | Will they test or seal ducts? Ductwork problems can undo a new system's efficiency. |
| Permits | Is a permit included, and who pulls it? |
| Warranty | Parts, compressor and labor, for how long, and is registration required? |
| Removal | Haul-away and proper refrigerant recovery from the old unit |
Licensing and paperwork
A system replacement is always a job over $1,000, so Virginia requires the contractor to hold a state contractor license (Va. Code § 54.1-1100). Look it up on the DPOR License Lookup, get a written contract with model numbers and total price, and avoid paying everything up front.