If you’ve recently gotten a quote for a new air conditioner and found yourself blinking at the price tag, you’re not alone — and you’re not imagining things.
HVAC prices across the country are rising, and homeowners in the Little Rock area are definitely starting to feel the heat. But what’s causing these HVAC price hikes in 2025, and more importantly, what can you do to stay ahead of them?
This month, Brad thought it would be a good idea to break all this down and give his customers some practical, money-saving tips.
What’s Driving Up HVAC Prices in 2025?
The answer boils down to three major factors: new Trump tariffs, updated refrigerant regulations, and industry-wide labor and material cost increases.
Let’s look at each and how they affect your price for a new system or service.
The Trump Tariffs:
Why Foreign Trade Policy Hits Home in Arkansas
In early 2025, former President Donald Trump announced a sweeping round of “reciprocal tariffs” on imported goods — and HVAC equipment got caught in the crossfire. Here’s what that looks like in real numbers:
- 34% tariff on imports from China
- 32% from Taiwan
- 46% from Vietnam
- 24% from Japan
- 20% from the European Union
- 10% baseline tariff on imports from all countries
Many homeowners are surprised to learn that even U.S.-assembled HVAC units often rely on foreign-made components. These include parts like compressors, circuit boards, coils, and motors — many of which come from Asia.
💡 What does this mean for you? Even if your system says “Made in the USA,” the parts inside are often imported. That means manufacturers are paying more, and unfortunately, those costs are being passed on to you. According to HVAC industry experts, the cost of HVAC systems could rise between 20% and 40% in 2025 alone due to these tariffs. (Source: ACHR News)
The Big Refrigerant Switch:
Out with R-410A, In with R-454B
As of January 1, 2025, the U.S. Environmental Protection Agency (EPA) is enforcing a new regulation that bans refrigerants with a Global Warming Potential (GWP) over 700. That includes the longtime standard, R-410A. Instead, new systems must use eco-friendly refrigerants like R-454B.
While this is a win for the planet, it’s also a costly shift for manufacturers, who have had to retool production lines, retrain service technicians, and invest in new technologies. Those expenses? Yep, they’re built into the price tags of newer units.
And that’s not all… older systems that use R-410A will soon be harder — and more expensive — to repair, since that refrigerant is being phased out. Newer refrigerants require special tools and training, which can also lead to higher labor costs during installation or service.
💡 What does this mean for you? If your HVAC system is over 10 years old, repairing it may become more expensive or even impossible. Replacing it now could be cheaper than waiting until prices (and refrigerant shortages) get worse.
Labor Shortages & Material Costs:
Why It’s Not Just the Equipment
The HVAC industry is also facing a serious skilled labor shortage as more experienced technicians retire and fewer young people enter the trades.
Add to that the rising costs of raw materials like steel, aluminum, copper used in wiring and coils, and electronics impacted by global supply chain bottlenecks… and you’ve got yourself a triple whammy. Fewer workers, more expensive parts, and longer wait times.
“This is what some economists warned about,” wrote Fortune Magazine. “Companies would pass higher costs on to consumers.”
What Can Jacksonville Homeowners Do to Save Money?
Here’s the good news: You still have options. While prices are rising, there are smart ways to protect your wallet and even take advantage of the changes happening in the industry.
1. Don’t Wait — Act Before Prices Climb Higher
If your HVAC system is more than 10-12 years old, now is the time to consider replacement — especially if it’s been having issues or your energy bills are rising. Why?
- Tariffs are now in effect, but Brad is still selling off older inventory
- Once that stock is gone, newer systems will reflect full post-tariff and refrigerant change pricing
- Some manufacturers are already warning of additional price hikes in the second half of 2025
💡 Pro Tip: Call us today to schedule a system checkup and consultation. We’ll help you understand whether your current system is worth keeping or replacing — and show you financing options if you decide to upgrade.
2. Take Advantage of Tax Credits & Energy Rebates
Thanks to recent federal programs, upgrading to an energy-efficient HVAC system could make you eligible for up to $3,200 per year in tax credits. Here’s how the credits break down:
- Heat pumps & water heaters: $2,000
- Insulation, doors, windows, AC, and furnace upgrades: $1,200
- Home energy audit: $150
(Source: IRS Energy Efficient Home Improvement Credit, 2025) 💡 Pro Tip: You can combine improvements (like attic insulation + a new AC) to maximize your return — just make sure you meet the SEER2 efficiency standards.
3. Consider a Home Energy Audit First
Think of an energy audit as a health checkup for your home. Brad will be happy to come out to your home and…
- Inspect your insulation, ductwork, and HVAC system
- Identify areas where energy is being wasted
- Recommend the most cost-effective upgrades
This not only makes your home more efficient — it could let you buy a smaller, more affordable HVAC system that still keeps you perfectly comfortable. And yes, energy audits are eligible for a $150 federal tax credit!
4. Explore Ductless & Heat Pump Options
For certain homes — especially older properties or additions — ductless mini-splits and heat pumps are a fantastic solution.
- Lower installation costs (no ductwork needed)
- Zoned temperature control = more efficiency
- May qualify for rebates AND tax credits
- Can provide both heating and cooling
5. Ask About Financing Plans
At Brad’s Heating & Air, we offer a variety of affordable financing options to help you spread the cost of a new system over time — without feeling the full pinch of price increases all at once.
Many homeowners are locking in lower monthly payments now to beat future inflation.
Pro Tip: an energy-efficient HVAC system will likely save you money on your monthly utility bills — sometimes enough to offset the financing cost entirely!
What If You Wait?
We understand that replacing your HVAC system is a significant investment, not one you make lightly. However, if you do decide to wait, here’s what’s likely going to happen…
- Prices will go up again as more tariff-impacted units reach the market
- Older refrigerants will become harder (and more expensive) to find
- Repair costs may rise due to technician shortages and part delays
- You may miss out on limited-time tax credits and rebates
It’s a case of “pay now or pay more later.” By planning, you stay in control of the costs, instead of scrambling during a midsummer breakdown.
Final Thoughts
At Brad’s Heating & Air, we’ve been proudly serving Jacksonville and Central Arkansas for years. We’re here to help you navigate the rising costs in the HVAC industry with honest advice, expert service, and budget-friendly options. We offer:
- Free consultations and system evaluations
- Help accessing rebates and tax credits
- Flexible financing plans
- Trusted local service you can count on
If you are ready to stay comfortable and save money, call today at (501) 330-8066 to schedule your appointment. Let Brad help you find the right system for your home — before prices go up again.