A little simple math can help determine the size system you need. A rule of thumb is 20 BTUs per square foot. So, a 500 square foot room would need 10,000 BTUs to cool or warm it efficiently. This assumes that you live in a temperate region and have adequate insulation with no energy loss. In the real world, all units have some degree of energy loss. This is reflected in an HVAC system's SEER rating for cooling and AFUE rating for heating.

PickHVAC Tips: Don’t be sold on systems with features you don’t want or need. Called “upselling,” it is rampant in the HVAC industry. Some features are nice – if you want them. If your single-stage furnace was loud and pushed out cold air at the start of the cycle, then a two-stage model will improve those issues. If you didn’t notice them, the upgrade will be a waste of money. That’s just one common example.

Asbestos removal tip.  Don’t trust any HVAC installation company that says that they will remove asbestos for you. They will do either one of two things: remove it and do a horrible job because they don’t know how (an illegal act in California, finable by up to $250,000), or they will say they did and never actually do it, which is dangerous to your health. Any HVAC contractor worth their weight will know not to touch it. Call an asbestos abatement company – it should cost around $500-$1,000, and your HVAC installation company will come in right after them and do the installation to decrease cost and inconvenience.
in response to this reply " should your ducts be cleaned", i have to politely correct the person who answered this. you are not using common sense. first, most of the country uses metal duct work, so for you to say what you did, is wrong. second, the duct system in a house is a circulatory system. that means it draws air into the furnace, it gets filtered, and then it is blown out into the house to heat or cool. So, obviously that air is being brought into the house from somewhere right? Yes, its coming from the outside where there are many allergens and dust particles . For you to says that about whether a duct system is sealed or not, makes no difference. The air is coming from somewhere right? It has to originate from somewhere right? Just look on top of your cieling fan. If there is a bunch of dust up there, then there is obviously a bunch in your ducts. And the duct air is being circulated every day, and every hour through your house. Its simple, dust collects everywhere in your house. Imagine if you never dusted your shelves, or tv? There would be a ton of dust after a while. Well, now think about the air in the duct system. Of course theres gonna be a ton of dust in there. For you to say that it is not benififcial to clean the ducts, is plain ignorant. 90% of the air we breathe is in our household. Wouldnt you want that air to be as dust and allergen free? I could go on for hours about the benifits of duct cleaning, but i just wanted to make a quick point that the person whose says it is not benificial to clean them, is not using common sense. Not to mention, giving the people who clean ducts for a living, a bad name. Use your head .

The performance of vapor compression refrigeration cycles[26] is limited by thermodynamics. These air conditioning and heat pump devices move heat rather than convert it from one form to another, so thermal efficiencies do not appropriately describe the performance of these devices. The Coefficient-of-Performance (COP) measures performance, but this dimensionless measure has not been adopted. Instead, the Energy Efficiency Ratio (EER) has traditionally been used to characterize the performance of many HVAC systems. EER is the Energy Efficiency Ratio based on a 35 °C (95 °F) outdoor temperature. To more accurately describe the performance of air conditioning equipment over a typical cooling season a modified version of the EER, the Seasonal Energy Efficiency Ratio (SEER), or in Europe the ESEER, is used. SEER ratings are based on seasonal temperature averages instead of a constant 35 °C (95 °F) outdoor temperature. The current industry minimum SEER rating is 14 SEER.[27][dead link]
The AC contactor (relay) and start/run capacitor(s) (see illustration below) fail most often and are inexpensive. So it's a safe bet to buy and install those parts right away, especially if your air conditioning service unit is older than five years. The condenser fan motor can also fail, but it runs about $150 — hold off buying that unless you're sure that's the culprit.
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