2025 Air Conditioner Prices in Ontario

What Homeowners Need to Know About New Regulations, Refrigerants and Tarrifs

Ontario’s air conditioning (AC) industry will undergo significant transformations in 2025, influenced by regulatory changes, market dynamics, and international trade policies.

These factors collectively impact AC unit pricing, availability, and the overall purchasing landscape for homeowners.

Understanding R-410A Phase-Out

Navigating Limited Inventory and New Regulations

Since 2010, R-410A has been the standard refrigerant in residential AC systems.

However, due to its high Global Warming Potential (GWP), Canada and the United States are implementing measures to phase it out. Starting January 1, 2025, new regulations on manufacturing in the United States require refrigerants with a GWP of less than 750, leading to the adoption of alternatives like R-32 and R-454 B.

These new A2L refrigerants are categorized as mildly flammable, necessitating updates to safety standards, building codes, and technician training programs.

The Heating, Refrigeration and Air Conditioning Institute of Canada (HRAI) has introduced training initiatives to equip technicians with the necessary skills to handle these refrigerants safely.

 

R-410A vs A2L Refrigerants

The shift to A2L refrigerants entails reengineering AC systems to accommodate the new substances, increasing manufacturing costs. Components such as evaporator coils and condensers require redesigning, and the refrigerants are more expensive than R-410A. Consequently, consumers can anticipate a price increase of approximately 15-30% for the new systems.

Additionally, the phase-out of R-410A units means that existing inventory is limited. Manufacturers are focusing on producing systems compatible with the new refrigerants, leading to reduced availability of older models. Homeowners considering a new AC installation should know these inventory constraints and plan accordingly.

Refrigerant Type

Price

Availability

Repair Cost

R-410A

Moderate, but rising due to economy

Decreasing as inventory diminishes

Increasing due to older technology

A2L (R-32 & R-454B)

Higher

Increasing as new models are introduced

Similar to existing parts

R-410A vs A2L Refrigerants

The shift to A2L refrigerants entails reengineering AC systems to accommodate the new substances, increasing manufacturing costs. Components such as evaporator coils and condensers require redesigning, and the refrigerants are more expensive than R-410A. Consequently, consumers can anticipate a price increase of approximately 15-30% for the new systems.

Additionally, the phase-out of R-410A units means that existing inventory is limited. Manufacturers are focusing on producing systems compatible with the new refrigerants, leading to reduced availability of older models. Homeowners considering a new AC installation should know these inventory constraints and plan accordingly.

R-410A
Price: Moderate, but rising due to economy
Availability: Decreasing as inventory diminishes
Parts Cost: Increasing due to older technology
A2L (R-32 & R-454B)
Price: Higher
Availability: Increasing as new models are introduced
Parts Cost: Similar to existing parts

Technician Training & Price Surge Warning: What You Need to Know

Angry AC Repair Guy GIF

As Ontario transitions to new A2L refrigerants like R-32 and R-454B, homeowners should prepare for rising costs. The phase-out of R-410A is creating limited inventory and increasing demand for existing models, both pushing higher prices.

At the same time, many HVAC technicians are still training on how to handle these newer, mildly flammable systems. This learning curve could mean:

  • Longer service times

  • Fewer available appointments

  • Higher labor costs

👉 What you can do:
Plan and upgrade early — before prices spike or technician schedules fill up. Acting now can help you avoid delays and lock in better pricing before the full transition.

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(416) 556-8368

Recommendations for Homeowners

Given these developments, homeowners in Ontario should consider the following steps:

  1. Assess Current Systems: Evaluate the condition of your existing AC unit. If it's nearing the end of its lifespan or requires significant repairs, consider replacing it sooner to avoid higher costs associated with the new refrigerant systems.
  2. Consult with Professionals: Engage with certified HVAC professionals to understand the implications of the refrigerant transition and tariffs on your specific situation. They can provide guidance on the best course of action tailored to your needs.
  3. Plan Financially: Anticipate higher costs for new AC installations and budget accordingly. Explore financing options or incentives that may be available to offset some of these expenses.
  4. Stay Informed: Keep abreast of ongoing developments in trade policies and industry regulations, as these can further influence pricing and availability.

By proactively addressing these factors, homeowners can navigate the evolving AC market more effectively, ensuring comfort during the warmer months while managing costs efficiently.

Funny AC GIF

How U.S. Tariffs Will Increase HVAC Prices in Canada | City Home Comfort

U.S. President Trump has announced a 25% tariff on all imports from Canada and Mexico, raising serious concerns for the HVAC industry. This decision is expected to directly increase HVAC prices in Canada, as many heating and cooling systems rely on components...

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Impact of U.S. Tariffs on AC Pricing

The imposition of U.S. tariffs on imported goods has significant implications for the HVAC industry, particularly in terms of inventory and pricing. These tariffs can lead to increased costs for air conditioning units and parts, affecting both availability and affordability for consumers. Understanding these dynamics is crucial for making informed purchasing decisions.

How do tariffs affect AC availability?
Tariffs can create supply chain disruptions, leading to reduced availability of certain air conditioning models. This can result in longer wait times for specific units and potentially higher prices due to limited stock.
Will tariffs increase the cost of AC units?
Yes, tariffs often lead to increased costs for imported goods, including air conditioning units. Manufacturers may pass these additional costs onto consumers, resulting in higher prices for end-users.
Are there alternatives to tariff-affected models?

Yes, opting for equipment manufactured in other parts of the world is still viable. Many cold climate air source heat pumps would be a great option with increased North American air conditioner prices, especially with government rebates coming into effect.

What should homeowners consider when buying AC units?
Homeowners should consider the long-term cost implications of tariffs, including potential price increases and availability issues. It’s advisable to consult with HVAC professionals to explore the best options for your needs.
How can I stay updated on tariff impacts?
Stay informed by following industry news and updates from reputable HVAC service providers. Regularly checking with your local suppliers can also provide insights into how tariffs are affecting pricing and availability.
Is it a good time to invest in a new AC unit?
Despite the challenges posed by tariffs, investing in a new AC unit with modern refrigerants can be beneficial. These units offer improved efficiency and compliance with environmental standards, which can offset initial cost increases over time.
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City Home Comfort Team