Cost to Replace an HVAC System in Denver (2025 Guide)
Denver's extreme climate — cold winters, hot summers, and high altitude — puts more demand on HVAC systems than most US cities. Knowing what replacement actually costs helps you avoid overpaying and make the right equipment choice.
Find HVAC Contractors in DenverKey Takeaways
- 1Full HVAC system replacement in Denver: $7,000–$15,000
- 2Denver altitude requires proper Manual J sizing — never skip this
- 3Xcel Energy rebates can offset $200–$500 of equipment cost
- 4Replace when repair cost exceeds 50% of replacement and system is 10+ years old
- 5Always get 3 written quotes with model numbers specified
Average HVAC Replacement Cost in Denver
Furnace only: $3,500–$8,000 installed. High-efficiency (96% AFUE) units run $5,000–$8,000 but qualify for Xcel Energy rebates.
Central AC only: $3,500–$7,500 installed. A 3-ton unit (typical for 1,500–2,000 sq ft) averages $4,500–$6,000.
Full system (furnace + AC): $7,000–$15,000 installed. Replacing both at once saves on labor and ensures matched equipment performance.
Heat pump system: $8,000–$18,000 installed. Gaining popularity with Colorado's climate incentives.
Denver Altitude Factor
Denver's elevation (5,280 ft) directly affects HVAC sizing. Gas furnaces must be derated for altitude — a 100,000 BTU furnace at sea level produces roughly 80,000 BTU in Denver. A qualified contractor performs a Manual J load calculation to properly size your system. Never accept a quote without a site visit.
Factors That Affect HVAC Cost
System size: each additional ton of AC capacity adds $500–$1,000. Higher efficiency ratings cost more upfront but reduce operating costs. Ductwork repairs add $500–$3,000. Denver requires permits for HVAC replacements ($150–$300).
Xcel Energy Rebates
High-efficiency furnace (96%+ AFUE): up to $300 rebate. Central AC (16+ SEER): up to $200. Heat pump systems: up to $500. Smart thermostat: $75–$100. Always ask your contractor about current Xcel incentives before finalizing equipment selection.
When to Replace vs. Repair
Replace when repair cost exceeds 50% of replacement cost and the system is over 10 years old. Replace AC units over 12–15 years old with R-22 refrigerant (no longer manufactured). Rising energy bills despite maintenance indicate declining efficiency.
Frequently Asked Questions
How long does HVAC replacement take in Denver?
A standard furnace or AC replacement takes 4–8 hours. A full system replacement typically takes 1–2 days.
What HVAC brands are best for Denver homes?
Carrier, Trane, Lennox, and Rheem are all well-supported in Denver with local parts availability.
Do I need a permit for HVAC replacement in Denver?
Yes. Denver requires a permit for HVAC replacements. Your contractor should pull it.
Is a heat pump a good choice for Denver?
Modern cold-climate heat pumps work well in Denver and qualify for significant state and federal incentives. Ask about models rated for temperatures below 0°F.
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