Your Guide to Commercial HVAC Upgrades: Benefits, Cost, Tax Breaks & More

As a business owner, you’re always looking for ways to cut costs. One area where you might be losing money without even realizing it is your commercial HVAC system. Upgrading to a newer, more efficient unit comes with a bunch of benefits, including lower energy bills, improved indoor air quality, tax deductions, and much more. Keep reading as we cover everything you need to know about commercial HVAC upgrades.

How Long Do Commercial HVAC Systems Last? 

With proper maintenance, the average life expectancy of a commercial HVAC system is 15 to 20 years. Like any piece of equipment, it will eventually reach the end of the line. And when that day comes, it’s time to start considering an upgrade. Trust us; your wallet will thank you in the long run!

The Cost of an Outdated HVAC System

According to the U.S. Department of Energy, an outdated HVAC system can increase your utility bills by a staggering 20–40%. This means that you could be spending thousands of dollars more each year on energy costs alone. But the expenses don’t stop there. As your HVAC system ages, it becomes more prone to breakdowns and malfunctions. That means you’ll need more repairs, which can quickly add up. In many cases, the cumulative cost of repairs for an aging system can exceed the price of investing in a new, more efficient unit.

When to Upgrade Your Commercial HVAC System

Can’t tell if it’s time to upgrade your commercial HVAC unit? Here are a few things to keep in mind:

• Age: Is your HVAC system old enough to get its own driver’s license? If it’s been keeping you cool for 15-20 years and looks like it’s seen better days, it’s time for an upgrade. 
• Performance: Even if your HVAC system hasn’t hit the 15-year mark, it could be due for an upgrade if it’s not heating or cooling like it used to, and your energy bills are steadily rising.
• Issues: Dirty filter here, a loose wire there—some HVAC issues aren’t that big of a deal. But if you’re dealing with more serious problems, like a busted furnace fan or refrigerant leaks, it could be time to invest in a new system.
• Refrigerant: Does your HVAC system still run on R-22 refrigerant? The EPA has been phasing out this ozone-depleting substance for a few years now. So, if your unit was installed before 2010, it’s probably due for an upgrade.

10 Benefits of Upgrading Your Commercial HVAC System 

A new HVAC system might seem like a big step, but the benefits are hard to ignore. Here’s why an upgrade is a smart move:

1. Improved Energy Efficiency

Modern HVAC systems use technologies like variable-speed compressors and high-efficiency motors, which deliver the same performance while consuming less energy. 

2. Enhanced Indoor Air Quality

Older HVAC systems circulate contaminants like dust, pollen, and mold spores, which can trigger allergies, asthma, and other respiratory issues. By upgrading to a system with advanced filtration, such as HEPA filters or UV air purifiers, you can dramatically improve indoor air quality.

3. Increased Comfort for Occupants

Comfortable employees are more productive employees, and there’s nothing quite as frustrating as trying to work in an office that’s either too hot or too cold. If you find yourself constantly fielding complaints about temperature, it might be time for an HVAC upgrade. Modern systems offer precise climate control and zoning capabilities, allowing you to create a more comfortable environment across different areas of your building.

4. Extended Equipment Lifespan

Modern equipment is built to last. By upgrading to a new system and following recommended maintenance schedules, you can significantly extend the lifespan of your HVAC equipment.

Don’t let your investment go to waste! Our commercial maintenance plans are designed to keep your new HVAC system running at peak performance for years to come.

5. Save Money on Utility Bills

For many businesses, HVAC costs can account for up to 50% of their total energy expenses. By upgrading to a high-efficiency system, you could see significant savings on your monthly utility bills. Those savings can add up quickly, providing a strong return on your investment and freeing up capital to invest in other areas of your business.

6. Tax Breaks 

Upgrading your commercial HVAC system isn’t just good for your bottom line—it can also provide a nice tax break. The 179D tax deduction allows building owners to claim up to $1.80 per square foot for installing qualifying energy-efficient systems. For a 50,000-square-foot building, that could mean a deduction of up to $90,000. That’s a good incentive to invest in a more efficient system, and it’s just one of many tax breaks and rebates available for energy-efficient upgrades.

7. Compliance with Energy-efficiency Standards 

As of January 1, 2023, the Department of Energy updated the minimum efficiency requirements for HVAC systems. These updated regulations introduce new ratings—SEER2, EER2, and HSPF2—which reflect more realistic operating conditions. Failing to meet these standards can result in fines and legal issues. But if you invest in a modern, high-efficiency system, you won’t have to worry about that.

8. Reduced Maintenance Costs 

Think about how much time and money you currently spend on HVAC repairs and maintenance. Now, imagine cutting those costs by 45% or more. That’s the potential impact of upgrading to a newer, more efficient system. 

9. Customizable Zoning

In a typical office building, different areas have different temperature needs. Conference rooms might need to be cooler for presentations, while individual offices might prefer warmer temperatures. With a modern HVAC system, you can create customized climate zones to meet the unique needs of your business.

10. Smart Technology Integration

Upgrading your commercial HVAC system opens the door to smart technologies that can revolutionize how you manage your building’s climate control. Many new HVAC units are compatible with building automation systems (BAS), allowing you to monitor, analyze, and adjust your HVAC performance from a central interface. With features like remote access, predictive maintenance, and real-time data analytics, you can optimize your system’s efficiency, identify potential issues before they escalate, and make decisions to minimize energy waste.

Overdue for an Upgrade? Jack Lehr Can Help

Upgrading your commercial HVAC system is a smart investment that offers a range of benefits for your business. From improved energy efficiency to better indoor air quality, a modern HVAC system can help you create a more productive, profitable, and sustainable work environment.

At Jack Lehr, we understand both the challenges and opportunities that come with upgrading your commercial HVAC system. Whether you need a simple repair, a complex installation, or a complete system replacement, our team has the expertise, and experience to get the job done right. 

Don’t wait until your old unit fails you—book a call today and learn how we can help you upgrade to a modern, high-performance HVAC system.