When it comes to replacing an HVAC system, one of the biggest questions facility managers face is, “How much is this going to cost?” And understandably so, HVAC systems are major capital investments. Whether you are operating a commercial office building or an industrial plant on a large scale, understanding what causes the greatest expenditure in replacement costs (and differing by environment) can arm you with the foreknowledge to plan better, budget more adequately, and prevent unpleasant surprises in the future.
So in this blog post, we are going to deconstruct the cost drivers, lay out the price ranges you should expect, and explain why commercial and industrial systems experience different cost dynamics.
What Affects HVAC Replacement Costs?
Each building differs, and so does the HVAC requirement of each building. Replacing a system may range very widely in cost depending on a number of factors:
- Kind of system: Rooftop units, split systems, VRF/VRV systems, and chilled water, all with their own price tag and installation complexity.
- Building size and use: The larger the building, the more zones to heat or cool, and more ducts and larger equipment capacity are required.
- Installation requirements: A straightforward swap of an old unit might be quick and simple, but a complete redesign with upgraded ducting, smart controls, or integration into a building management system (BMS) will drive up the cost.
- Energy efficiency goals: Businesses increasingly want HVAC systems that are not only effective but also sustainable. Higher-efficiency models often have a higher upfront cost, but they can deliver savings over time.
Commercial HVAC System Costs
Commercial buildings like office blocks, schools, retail outlets, hospitality venues, and leisure centers typically use commercial HVAC systems designed for comfort, zoned control, and consistent temperature regulation across multiple rooms or floors.
Common systems for these settings include:
- Rooftop packaged units
- Split systems
- Variable Refrigerant Flow (VRF) / Variable Refrigerant Volume (VRV) systems
Depending on the size of the space and the system selected, replacement costs for commercial HVAC units usually range between £6,000 and £25,000. For mid-sized buildings, you’re typically looking at a £10,000–£20,000 ballpark, especially when installation involves some ductwork improvements or upgrades to the BMS.
Separate costs might also be included in case the current system is old and not compatible with modern thermostats or does not use smart zoning, requiring rewiring or extra controls.
Industrial HVAC System Costs
Industrial settings like factories, warehouses, food production units, and logistics hubs operate on a different scale. Here, the HVAC system isn’t just about comfort. It may also need to manage air quality, control humidity, remove fumes or dust, and meet strict health and safety regulations.
Because of these needs, industrial HVAC systems tend to be custom-built and much more powerful. We’re talking about large air handling units (AHUs), extensive ductwork, chiller systems, heating zones, and integrated exhaust systems.
For such kinds of premises, replacement costs basically start from £50,000 and can easily go beyond £100,000, depending on complexity. The system design typically needs to be a custom design, which may need expert input regarding the airflow calculations, structural support, mechanical access, and regulation compliance.
Another factor? Downtime matters. In most industrial facilities, installing an HVAC system must be scheduled around manufacturing schedules or installed progressively over time, potentially raising labor and logistical expenses.
Energy Efficiency and Long-Term Value
It can be short-sighted to only consider the initial cost of the HVAC system. Of course, capital cost counts, but lifetime operating costs can be the real story.
High-efficiency systems may be expensive at first but can:
- Cut down the monthly energy expenses
- Reduce carbon emissions, with a view to CSR or net-zero targets
- Enhance the quality of air and comfort, which may increase productivity
- Minimise the necessity of constant repairs or replacements of parts
These savings may accumulate to substantial savings over a 10-15 year life of the system. Indeed, numerous businesses operating commercially and industrially discover that a little extra expenditure on an energy-efficient, meticulously planned system is worth its outlay in the long run.
If you’re eligible, there may also be incentives or tax reliefs available for energy-saving equipment, especially under government-backed sustainability schemes or carbon reduction programs.
Planning Your HVAC Upgrade: A Quick Checklist
When you are in the beginning phases of planning a replacement, the following are some key questions to ask:
- Has the end of life been reached with the present system? Common heating, ventilation, and air conditioning systems last 10 to 15 years. When it comes to being old, having constant faults, or losing efficiency, it is time to get a replacement.
- Are the building’s heating and cooling requirements likely to be different in 5-10 years? Use planning to determine whether your workforce is expanding or if you are changing the way you utilize space.
- Is the structure built according to the standards of ventilation and energy efficiency nowadays? Regulatory trouble and poor indoor air quality can result if the building is not ventilated well.
- When do you operate, and what are your demand periods? These will have implications for system sizing and zoning.
- Would you like the system combined with your BMS or smart building technology? In such a case, select the system that is built to allow such at the onset.
The Bottom Line
Choosing the right HVAC system for your commercial or industrial building isn’t just about picking a product; it’s about balancing energy cost, efficiency, compliance, and long-term performance.
Commercial systems tend to be more affordable and quicker to install but are usually designed for lighter loads and comfort-focused environments. Industrial systems, on the other hand, are engineered for durability, high capacity, and specialized needs, which naturally makes them more expensive and complex.
Either way, investing in the right system, at the right time, can lead to major operational benefits and cost savings over the long run.
Seek professional advice before you invest
Cormek Solutions assists in informed decision-making across the Midlands and North of England for businesses to upgrade or replace HVAC systems. Be it a warehouse or a multistorey office block, we will ensure that you get the right system and maintain it to continue serving you efficiently in the many years ahead.
Contact our team right now to speak about your HVAC upgrade or get a custom quote.