When a furnace, air conditioner, or water heater becomes unreliable, it helps to have a price reference before deciding what to do next. Iceberg Heating & Cooling created this guide for homeowners in Monroe, nearby Monroe County communities, Downriver, Ann Arbor, and Ypsilanti who want to understand replacement options and starting costs.
Air conditioning and furnace installations featured in this guide start at $6,500. Traditional water heater installation starts at $2,000. You will also find higher-tier equipment for homeowners considering additional comfort features, greater efficiency, or a different system configuration.
These figures are starting installation prices for the listed models. Your home’s equipment requirements and the work needed to complete the replacement determine the final estimate.
First, Decide Whether Replacement Solves the Problem
An uncomfortable house does not always need new equipment. Weak airflow, control problems, or another repairable issue may explain why a system is struggling. If replacement is recommended, understanding the diagnosis helps you compare that investment with the condition and repair needs of the current equipment.
For a Monroe homeowner facing repeated breakdowns, reliability may lead the decision. For someone planning ahead in Temperance or Dundee, there may be more time to compare operating features and coordinate the installation. In either situation, the estimate should explain why the proposed equipment fits the home.
How Much Does a New AC or Heat Pump Cost?
The cooling options shown here begin at $6,500 and progress to starting prices of $7,500 and $10,000. The first two are central air conditioners. The highest-tier selection is a heat pump that can also provide heat.
Good: Lennox ML13KC1-024 Air Conditioner
Starting installation price: $6,500.
- Lennox Merit Series equipment
- Single-stage cooling operation
- Meets or exceeds 13.4 SEER2 efficiency
This model gives homeowners a lower starting-price route to central AC replacement. It is a useful option to discuss when restoring dependable cooling is the immediate goal.
Better: Lennox EL16KC1-024 Air Conditioner
Starting installation price: $7,500.
- Lennox Elite Series equipment
- Single-stage cooling operation
- Up to 17 SEER2 efficiency
This selection offers a higher efficiency rating while keeping a single-stage operating design. Iceberg can help you compare its installed cost with the entry-level model and evaluate the required indoor equipment match.
Best: Lennox SL25XPV-024-230 Heat Pump
Starting installation price: $10,000.
- Dave Lennox Signature Collection equipment
- Variable-capacity heating and cooling
- Both cooling and heat pump heating from the outdoor system
This premium option is appropriate to consider when you want to discuss a broader heating and cooling upgrade. Its installation requires a review of compatible indoor equipment, controls, and the home’s complete heating plan.
What Can Add to a Cooling Replacement Project?
If your home in Newport or Flat Rock has a room that never cools properly, mention that before selecting equipment. Duct restrictions, return-air limitations, and other system conditions deserve evaluation alongside the outdoor unit.
- Different equipment capacity based on the home’s cooling requirements
- Indoor coil or air-handler changes
- Refrigerant line repairs, replacement, or rerouting
- Electrical circuit, breaker, disconnect, or wiring work
- Ductwork corrections and new equipment transitions
- Condensate drainage and thermostat updates
- Equipment access, placement, permits, and inspections
Visit our Monroe-area AC installation and replacement page to learn more about planning a cooling upgrade.
Furnace Replacement Prices for Monroe and Southeast Michigan
When planning for winter, compare how the furnace delivers heat as well as its efficiency rating. The three Lennox models below move from single-stage heating to two-stage and modulating operation, with different blower technologies at each level.
Good: Lennox ML196UH070XE36BK Furnace
- Starting installation price: $6,500
- Series: Lennox Merit
- Efficiency: Up to 96% AFUE
- Heating: Single-stage
- Motor: Power Saver constant-torque
This is the value-focused furnace selection in the guide. It provides high-efficiency gas heating for homeowners who want to prioritize a manageable initial replacement cost.
Better: Lennox EL297UH070XV36BK Furnace
- Starting installation price: $7,500
- Series: Lennox Elite
- Efficiency: Up to 97% AFUE
- Heating: Two-stage
- Motor: Variable-speed blower
This furnace adds another heating stage and more flexible blower control. It is worth comparing if the way heat is delivered matters as much to you as replacing worn equipment.
Best: Lennox SLP99UH070XV36BK Furnace
- Starting installation price: $10,000
- Series: Dave Lennox Signature Collection
- Efficiency: Up to 99% AFUE
- Heating: Modulating
- Air delivery: Variable-speed airflow
The highest-tier furnace shown offers more precise control over heating output. Iceberg can explain the complete installation and control setup needed to support this equipment in your home.
Why the Existing Furnace Setup Matters
A replacement in a Carleton home may need a different vent route or duct transition than an installation in Romulus. The amount of modification depends on what is already in place, the selected furnace, and the requirements of the property.
The estimate should account for heating capacity, gas supply, combustion air, exhaust venting, condensate drainage, electrical connections, and thermostat compatibility. Installation access and required code updates also affect the work. Tell the estimator about recurring cold rooms or airflow problems so they can be investigated before installation.
Water Heater Installation Costs and Configuration Choices
When hot water becomes unreliable, replacing the existing tank with a similar setup may be one option. Switching to power venting or tankless equipment is a different project and should be evaluated on its own installation requirements.
Good: Bradford White RG240T6N Natural Draft Water Heater
Starting at $2,000. This traditional tank-style gas water heater uses natural-draft venting. It is an option for homes with an appropriate atmospheric venting arrangement and household demand suited to the equipment.
Better: Bradford White RG1PV40S6N Power Vent Water Heater
Starting at $3,000. This gas tank water heater uses a power-vent configuration. It offers additional venting flexibility, with the final installation depending on an approved vent route and the necessary electrical connection.
Best: Navien NPE-240A Tankless Water Heater
Starting at $8,000. This condensing tankless model mounts on the wall and does not use a traditional storage tank. It is the premium hot water option in this comparison for households interested in changing to a tankless setup.
Planning a Water Heater Conversion
Before converting a Monroe County home from a tank to tankless equipment, have the complete installation reviewed. A change in equipment type may require modifications to gas piping, water lines, venting, electrical connections, and condensate disposal.
Household demand matters too. Discuss how often showers, laundry, and other fixtures operate together. The proposed water heater should be selected for those needs rather than its price tier alone.
Other potential costs include pressure-control components, an expansion tank where required, drain pans or drainage improvements, installation access, permits, and inspections.
Questions to Ask Before Approving an Installation
- Why is this equipment size appropriate for my home?
- Which existing components can remain, and which need replacement?
- Does the estimate address the comfort or hot water problem I reported?
- What venting, plumbing, electrical, or ductwork changes are included?
- How are permits, removal of old equipment, and cleanup handled?
- What warranty coverage and maintenance requirements apply?
These questions help turn a starting price into an understandable project scope. They also make it easier to compare proposals that may include different equipment or levels of installation work.
Financing an Unexpected Replacement
Equipment failures do not always arrive at a convenient time. Iceberg offers financing options for qualified customers who want to explore spreading eligible installation costs over time.
Ask about current approval requirements, interest rates, repayment terms, and promotional conditions. Review the full financing agreement and confirm whether any available offers apply to the equipment and project you select.
Get a Replacement Estimate From Iceberg
Whether you are planning ahead in Monroe, comparing options in Downriver, or arranging an upgrade in Ann Arbor or Ypsilanti, start with an evaluation of the existing system. Iceberg can explain the replacement choices and identify the work needed to install them.
Contact Iceberg Heating & Cooling to request an estimate for your furnace, air conditioner, heat pump, or water heater. Use this guide to bring specific questions about equipment features, starting prices, and your home’s installation needs.
The prices in this guide are starting figures for the listed installations and do not establish a guaranteed total for any property. Final estimates reflect equipment sizing and availability, installation conditions, required upgrades, permits, code requirements, taxes, and applicable promotions. Financing availability and costs depend on approval and program terms. Contact Iceberg for current pricing and a complete written estimate.
