Commercial HVAC Units: Repair or Replace?

Commercial HVAC Units: Repair or Replace?
Commercial HVAC Units Repair or Replace

Do you, your coworkers, or employees have to adjust the thermostat in your building to stay comfortable frequently?

Does the A/C unit or furnace make noises when it powers up? Does the air feel stuffy or damp? If you said yes to any of these, it might be time to consider repairing or replacing your commercial HVAC unit.

 

If you are reading this, chances are the heating, ventilation, and air conditioning (HVAC) unit in your business is not running properly. Don’t panic! It’s not easy to know when, or if you should repair or replace a commercial HVAC unit, but this decision is something that every business faces.

Often, because of the high initial cost of a new HVAC unit, a decision is made to repair an older, less efficient system instead of replacing it with a newer, energy-efficient unit.

While there’s no ironclad rule on repairing vs. replacing an HVAC unit, the decision has to be made strategically. Here are some things to take into consideration when you’re trying to make the right decision for your company.

Cost of Repair Vs. Cost of Replacement

 

This is probably the most common factor. A general rule that most people follow is if the HVAC equipment repair will be more than 50-60% of the replacement costs, it may be best to part ways and replace the equipment. Consider the differences in cost between repairing or replacing, to see which one is more feasible for your company’s budget.

Potential Energy Saving

 

Commercial air conditioners and heat pumps have an average lifespan of 10 to 12 years, while furnaces can last around 15 to 20 years. If your equipment is within those ranges, it would be wise to budget for more repairs shortly. This all comes down to personal choice in the end, as there is no ironclad rule about HVAC equipment life expectancy.

Tax Credits

 

If you own a small business in Ontario, you may be eligible for provincial tax credits.** Small business (businesses with residential-type systems) owners in Ontario who have purchased and installed eligible HVAC equipment through a participating contractor can participate in this incentive program.

Incentives for commercial HVAC equipment are available for businesses using:

  • High-Efficiency Furnaces
  • Energy Star® Certified Central Air Conditioners
  • ECM Circulator Pumps
  • Air-Source Heat Pumps (ASHP)
  • Adaptive Thermostats

Renovations & Improvements

 

Upgrades to a business place that improve energy efficiencies, such as new windows, roofing, and insulation can also affect the efficiency of an HVAC system. Depending on what improvements were made to your business, you might benefit from downgrading to a smaller commercial HVAC unit. This will provide better comfort at a lower operating cost.

Age Of The System

 

Air conditioners and heat pumps (both commercial and residential) have an average lifespan of 10 to 12 years, while furnaces can last around 15 to 20 years. If your equipment is within those ranges, it would be wise to budget for more repairs shortly. This all comes down to personal choice in the end, as there is no ironclad rule about HVAC equipment life expectancy.

 

Other signs can indicate it’s time to replace the commercial HVAC Unit in your building. Consider how frequently repairs are being made to the unit, or whether energy bills are fluctuating.

With the help and support of Tri-Air, you can accurately decide whether it’s best to repair or replace your commercial HVAC unit.

To properly gauge the condition of your existing commercial HVAC unit, schedule an inspection with Tri-Air HVAC technicians today!

  1. How do I know if my commercial HVAC unit needs repair or replacement?
    Watch out for signs like frequent adjustments to maintain comfort, unusual noises, or stuffy air. If you’re facing these issues, it might be time to consider repair or replacement.
  2. What factors should I consider when deciding between repair and replacement?
    Key factors include repair costs versus replacement costs. Generally, if repairs exceed 50-60% of replacement costs, it’s wise to consider replacement. Also, consider energy savings, potential tax credits, recent renovations, and the age of your system.
  3. Are there any tax credits available for commercial HVAC equipment in Ontario?
    Yes, small businesses in Ontario may be eligible for provincial tax credits when purchasing and installing eligible HVAC equipment. Check the Save on Energy website for more details and participating contractors.
  4. How do renovations and improvements impact the decision to repair or replace HVAC systems?
    Upgrades enhancing energy efficiencies, like new windows or insulation, may affect HVAC system efficiency. Depending on these improvements, it might be beneficial to switch to a smaller HVAC unit for improved comfort and lower operating costs.
  5. What role does the age of the HVAC system play in the decision-making process?
    Commercial HVAC units typically last 10-12 years for air conditioners and heat pumps and 15-20 years for furnaces. If your system is within these ranges and requires frequent repairs, it’s worth considering a replacement.
  6. Besides repair costs, are there other signs indicating it’s time to replace the HVAC unit?
    Yes, frequent repairs, fluctuating energy bills, or any significant drop in system efficiency are indications that it might be more beneficial to invest in a new commercial HVAC unit.
  7. How can Tri-Air help me decide whether to repair or replace my commercial HVAC unit?
    Tri-Air’s HVAC technicians can conduct a thorough inspection of your existing HVAC unit, assessing its condition accurately. Schedule an inspection with us today to make an informed decision tailored to your specific needs.
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