Material Costs 2026: What HVAC Contractors Need to Budget

2026 HVAC Material Landscape

Refrigerant: The R-410A Transition

The phase-down of R-410A continues. Prices have increased 15-20% as production quotas tighten. R-454B (the replacement) is becoming more available but requires new equipment and EPA certification updates.

Stock up on R-410A for existing system repairs while available. Price in 2026: $180-250 per 25lb jug (was $120-150 in 2024).

Equipment Costs

• Residential AC units (2-5 ton): $2,500-5,500
• Furnaces: $1,200-3,500
• Heat pumps: $3,000-7,000 (growing demand due to energy credits)
• Mini-splits: $1,500-4,000

The IRA Energy Credits Factor

The Inflation Reduction Act energy credits continue through 2032. Heat pump installations qualify for up to $2,000 in customer tax credits. This is driving demand — and you should market it.

Protecting Your Margins

1. Quote refrigerant at current market price + 20% (prices change weekly)
2. Equipment quotes valid 14 days max
3. Include a material escalation clause for projects booked 30+ days out
4. Push heat pump upgrades — higher ticket, better margins, customer gets tax credits

Your next step: Update your equipment pricing sheet this week. Last year's prices are already wrong.