A standard packaged roof top unit that ranges from 5-20 tons has an average life expectancy of approximately 15-17 years. With a good HVAC service program the equipment may last several more years. As the equipment reaches the end of its’ useful life, it becomes less reliable and repair costs significantly increase.
In addition to the cash flow and depreciation considerations that will be taken into account for the purchase of new equipment, other items to consider include the following:
- The enhanced efficiency of the new unit over the old one will result in reduced utility costs. Efficiency may improve 30-40% depending on the condition of the older unit which means reduced utility expenses.
- Greater reliability of the new unit so less down time which will keep your employees more productive and happier.
- New units are more efficient and they come with environmentally friendly refrigerant so you are reducing your impact on the environment. We hear a lot about green buildings and the HVAC equipment plays an important role on reducing the environmental impact.
- Reduced repair costs on expensive components. Compressors which are often one of the most expensive items to replace often have a 5 year warranty on a new unit.
Most of the above items can be easily quantified so you can make an informed decision on whether or not the time is right to replace the equipment with newer more efficient units.