Considering an HVAC or AC replacement in Portola Valley? You’re likely looking at a cost range of $8,000 to $16,000 for a full system replacement. This significant range is due to factors like the size of your home, the type of system you choose, its energy efficiency rating (SEER2), ductwork condition, and the complexity of the installation. Before you get started, be sure to check out our complete California Heating & Cooling guide for important information on state laws and regulations.
Material Prices
Keep in mind that in 2026, California is strongly encouraging homeowners to shift away from gas furnaces to more efficient and environmentally friendly electric heat pumps. The prices below reflect systems that meet current Title 24 energy efficiency standards.
| System Type | Description | Estimated Cost (Installed) |
|---|---|---|
| Standard Heat Pump (SEER2 16-18) | Provides both heating and cooling. Energy-efficient option. | $8,000 – $12,000 |
| High-Efficiency Heat Pump (SEER2 19+) | More efficient than standard models, offering greater energy savings. Qualifies for more rebates. | $12,000 – $16,000+ |
| Central AC Unit (SEER2 16-18) | Cooling only; best paired with a separate heating system if not using a heat pump. | $4,000 – $8,000 (cooling only, excluding heating system) |
Local Factors
Permits: Replacing an HVAC or AC system in Portola Valley requires a permit from San Mateo County. The cost of the permit varies depending on the scope of the project and the system’s value. Expect to pay several hundred dollars for the permit itself.
Installation Labor Rates: Labor costs in the Bay Area are among the highest in the nation. Expect to pay between $75 to $150 per hour for HVAC installation labor. The total labor cost will depend on the complexity of the job and the amount of ductwork that needs to be modified or replaced. Duct sealing, mandated by Title 24, adds to labor time.
CSLB Licensing: It’s absolutely crucial to hire a licensed HVAC contractor in California. Working with an unlicensed contractor can lead to significant fines and liability issues. Always verify the contractor’s license on the California Contractors State License Board (CSLB) website. Look for a CSLB license classification of C-20 (Warm-Air Heating, Ventilating and Air-Conditioning).
Weather Impact
Portola Valley experiences warm, dry summers. While not as extreme as the Central Valley, efficient cooling is essential. California’s climate necessitates high-efficiency HVAC systems. The push for heat pumps is driven by their ability to provide both efficient heating and cooling. Investing in a high SEER2-rated heat pump will not only keep your home comfortable but also lower your energy bills and potentially qualify you for state and federal rebates under the Inflation Reduction Act. Furthermore, consider the impact of wildfire smoke. Upgrading to a MERV 13 filter or installing an air scrubber can significantly improve indoor air quality and protect your family’s health.
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FAQ
- How long does HVAC installation typically take?
The duration of HVAC installation varies based on the complexity of the job. A straightforward AC or furnace replacement may take 1-2 days. However, installing a new system with ductwork modifications can take 3-5 days. - What is SEER2 and why is it important?
SEER2 (Seasonal Energy Efficiency Ratio 2) is a new rating system for AC and heat pump efficiency. Higher SEER2 ratings indicate greater energy efficiency, leading to lower energy bills. California mandates minimum SEER2 ratings for new installations. - Are there rebates or tax credits available for upgrading to a more efficient HVAC system?
Yes! The Inflation Reduction Act offers significant federal tax credits for energy-efficient HVAC systems, particularly heat pumps. Additionally, California offers various state rebates and incentives. Be sure to ask your contractor about available programs.