How to Start an HVAC Business in 2026: Complete Guide
Step-by-step guide to starting your own HVAC business. Covers EPA certification, licensing, equipment costs, and how to build a profitable heating and cooling company.
How to Start an HVAC Business in 2026: Complete Guide
HVAC is one of the highest-paying trades with strong recurring revenue potential. Every home and business needs heating and cooling—and systems need regular maintenance.
Average HVAC business owner income: $80,000-$200,000/year
This guide covers everything you need to launch a successful HVAC company.
Step 1: Get Certified and Licensed
Required Certifications
EPA Section 608 Certification (REQUIRED)
- Legally required to purchase and handle refrigerants
- Four types: Type I (small appliances), Type II (high-pressure), Type III (low-pressure), Universal (all)
- Get Universal certification—covers everything
- Cost: $150-$200 for exam
NATE Certification (RECOMMENDED)
- Industry-recognized technician certification
- Improves credibility and allows higher rates
- Cost: $150-$250 per specialty
State Licensing Requirements
Most states require:
- HVAC contractor license: Varies by state
- Experience: 2-5 years under licensed contractor
- Exam: Trade and business law
- Insurance: Proof of liability coverage
Check your state's contractor licensing board for specific requirements.
Step 2: Register Your Business
- LLC (recommended for liability protection)
- S-Corp (better for higher income, $75k+)
- Business registration
- State tax accounts
- Contractor license application
Step 3: Get Insurance
Required:
- General liability: $1M minimum ($1,000-$3,000/year)
- Workers compensation: Required with employees
- Commercial auto: For service vehicles
Recommended:
- Tools and equipment: Covers expensive HVAC equipment
- Professional liability: Errors and omissions coverage
HVAC insurance costs more than other trades due to higher liability exposure.
Step 4: Buy Equipment and Tools
Essential Tools ($8,000-$15,000)
Diagnostic equipment:
- Manifold gauge set
- Digital multimeter
- Refrigerant leak detector
- Combustion analyzer
- Psychrometer
Hand tools:
- Tube cutters and benders
- Flaring tools
- Torque wrenches
- HVAC-specific hand tools
Recovery equipment:
- Refrigerant recovery machine ($500-$1,500)
- Recovery tank
- Vacuum pump
Service Vehicle ($15,000-$45,000)
HVAC requires more cargo space than other trades:
- Used cargo van: $15,000-$25,000
- New cargo van: $35,000-$45,000
- Consider van upfitting for organization ($2,000-$5,000)
Step 5: Set Your Pricing
Service Call Structure
| Service | Price Range |
|---|---|
| Diagnostic/service call | $75-$150 |
| AC tune-up | $100-$200 |
| Furnace tune-up | $80-$150 |
| AC repair (average) | $300-$600 |
| Furnace repair (average) | $200-$500 |
Installation Pricing
| System | Price Range |
|---|---|
| AC replacement | $4,000-$8,000 |
| Furnace replacement | $3,000-$6,000 |
| Full system (AC + furnace) | $7,000-$15,000 |
| Heat pump | $5,000-$12,000 |
Maintenance Contracts (Recurring Revenue)
Offer annual maintenance plans:
- Basic: 1 tune-up/year — $150-$200
- Premium: 2 tune-ups + priority service — $300-$400
Maintenance contracts provide predictable recurring revenue and customer retention.
Step 6: Marketing Your HVAC Business
Immediate Actions (Free)
- Critical for "HVAC near me" searches
- Add photos of your work
- Collect reviews aggressively
- Spring: AC tune-ups and replacements
- Fall: Furnace tune-ups and replacements
- Summer/Winter: Emergency repairs
Paid Marketing
- Google Local Service Ads: Best ROI for HVAC ($25-$75/lead)
- Google Ads: Target emergency searches
- Facebook: Maintenance plan promotions
Step 7: Build Recurring Revenue
HVAC has the best recurring revenue potential of any trade:
Maintenance Agreement Strategy:
100 agreements at $200/year = $20,000 guaranteed annual revenue
Step 8: Set Up Systems
Phone System (Critical for HVAC)
HVAC emergencies happen at the worst times—no heat in winter, no AC in summer. You MUST answer every call.
Options:
- Answering service: $200-$500/month
- AI service (Fixly): $1/booking, 24/7, handles emergencies
Set up Fixly →
Software Stack
- Field service: ServiceTitan, Housecall Pro, or Jobber ($50-$200/month)
- Accounting: QuickBooks ($25-$80/month)
- Payments: Square or Stripe (2.6% + $0.10 per transaction)
Startup Cost Summary
| Category | Minimum | Comfortable |
|---|---|---|
| Certifications/licensing | $500 | $1,500 |
| Insurance (annual) | $2,000 | $5,000 |
| Tools and equipment | $8,000 | $15,000 |
| Vehicle | $15,000 | $35,000 |
| Initial inventory | $2,000 | $5,000 |
| Marketing | $500 | $3,000 |
| Software/systems | $500 | $1,000 |
| Total | $28,500 | $65,500 |
First Year Roadmap
| Month | Focus |
|---|---|
| 1-2 | Setup: licensing, insurance, equipment |
| 3-4 | First customers, build reviews |
| 5-6 | Seasonal push (spring AC or fall heating) |
| 7-8 | Build maintenance contract base |
| 9-12 | Scale marketing, consider first hire |
Keys to HVAC Success
HVAC offers some of the best income potential in the trades. Start smart, build your maintenance base, and you will have a highly profitable business.
Frequently Asked Questions
How much does it cost to start an HVAC business?
HVAC businesses typically require $15,000-$75,000 to start due to specialized equipment needs. Minimum viable with basic tools and used van: $15,000-$25,000.
What certifications do I need for an HVAC business?
At minimum: EPA Section 608 certification (required to handle refrigerants). Most states also require an HVAC contractor license with proof of experience and insurance.
Is HVAC a good business to start?
Yes. HVAC has high demand (especially during extreme weather), recurring revenue from maintenance contracts, and average job values of $3,000-$15,000 for system replacements.
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