HVAC Business Start-Up Cost In 2022

HVAC Business Start-Up Cost In 2022


Owning an HVAC business in the USA can be rewarding and profitable. You can use your expertise to make sure that your customers’ homes are comfortable, and you will be in a position to appreciate the tax breaks and other incentives available to you if your business serves customers in the USA. The market for HVAC systems in the United States was estimated at  $16.54 billion in 2021, and from 2022 to 2030, it is expected to grow with a CAGR of 5.6 percent. Let’s understand the HVAC business start-up costs with facts and figures.

Cost To Start An HVAC Business

There are two ways you can start an HVAC business. If you are starting a business of your own without any collaboration with the franchise, investment in the business can be as low as 3000 USD and can even go over  $100,000. Assuming you’re purchasing a used vehicle and attempting to keep your equipment prices low, pending somewhere from $3,000 and $12,000. If you buy everything new and choose costlier equipment, the price may easily exceed $100,000. The second way is collaborating with an HVAC franchise. We have covered the details about the cost of the HVAC franchise in the later section of the blog. Let’s dive deeper into the requirements and HVAC Business Start-up costs in the USA.

Investments required for HVAC business Start-Up

A vehicle that can accommodate all of your tools and equipment. An average new truck costs between $125,000 and $150,000. You can opt for second-hand vans or trucks to save costs.

HVAC tools and equipment. Read our blog to get complete information about all the HVAC tools you need for your business. Basic HVAC tools and safety gear generally cost $200 to $300 for new HVAC professionals.

Marketing assets such as business cards and door hangers with contact information. You can also print accessories and t-shirts to create a brand image.

Equipment for air conditioning and refrigeration (Costs around $400–$700)

You will also need to hire certified HVAC technicians. At the start, you can carry out many tasks on your own, but when you have more clients and job orders, you’ll have to concentrate on sales, marketing, Scheduling, and other business-related tasks. Hence hiring technicians becomes necessary. Get complete details of HVAC technician salaries in our blog.

HVAC Business Insurance Costs

HVAC insurance consists of a collection of coverages that owners in the HVAC business are often obliged to buy. It includes:

  1. General Liability Insurance or Business Owners Policy. …
  2. Property Insurance
  3. Business Owner’s Policy (Optional)
  4. Commercial Auto (or Comprehensive Personal Auto Insurance) …
  5. Workers’ Compensation.

HVAC businesses may additionally need general liability, workers’ compensation, and commercial car insurance, even though most states simply demand bonds.

Depending on coverage and company requirements, the annual cost of the three insurance plans together might range from $8,500 to more than $21,300.


Other Profitable investments in the HVAC Business

Website: You can appear in the local searches for “HVAC businesses near me,” which is one of the finest strategies to attract new clients. You need to create a website, claim your Google My Business listing and add your company to Google Maps to get local clients easily and attract a large set of customers. Get estimated costs of having a website from Upwork.

HVAC Software: HVAC management software can help you streamline your business and can lower the budget required for office work. It comes with features like Scheduling, invoicing, QuickBooks integration, etc. You can get a free demo of the software here. It is very fruitful to explore the software if you are starting out as an HVAC business. To know more about the price book a free demo with ZenTrades.

Cost Of Joining An HVAC Franchise

A franchise can be expensive but can help you gain customers faster and easier. The buy-in price for a franchise might be anything from $50,000 and $80,000, and Investment can be around 100k. Such a business may generate additional revenue from cleaning and restoration, house maintenance, and offering both commercial and residential customers cost-effective energy solutions.

When you operate your own HVAC company, you are responsible for almost all aspects. With a franchise, you’ll frequently receive crucial assistance on operations, including advertising, purchasing of equipment, prospecting, etc. But on the other hand, you will have to pay heavy royalty to HVAC franchises.

Here are the costs of joining the top franchises of HVAC in the USA:[Source]


Initial investment:  $133,880 –  $311,530 

Franchise Fee:  $43,000 


Initial investment:  $191,825 –  $245,700 

Franchise Fee:  $70,000


Initial investment:  $87,600 –  $216,400

Franchise Fee:  $40,000

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