That price quote sounds out of line... something doesn't add up. I'm in the SouthEast, where cost of living is generally lower than most other parts of the country. For lower end equipment (13 SEER A/C with 80% furnance), I didn't get any quotes below $6,500. Most quotes for equipment that qualifies for the tax credit were generally closer to the $8,500 number. In the end, we went with a recomended private licenced contractor that got us a system to qualify for the tax credits at a cost just a little south of $8,000 and it seemed like a bargin. Equipment cost sounds about right, but the labor cost seems low. The worry there is that it's an installer that might be taking short-cuts to come in as a low bidder. What I learned from my experience in getting the HVAC system updated is that WHO is installing the equipment is more important than WHAT is getting installed. Basically, I've been told that most manufactures are getting major components (like the compressor) from the same source. But it's also possible to take short-cuts to get a system installed. A short-cut system WILL run. But the prognosis for long life isn't as good. Basically, you can get a longer life with cheap equipment installed correctly than you can from expensive equipment installed poorly. So my advice to people who are looking to replace their HVAC system is to get a quote from three or more places. No one can properly quote an HVAC install without a sight visit. Use that time of the sight visit to in effect interview the company/installer. You SHOULD get quotes that are all about the same even if the equipement isn't exactly the same. Ignore quotes that are "out-of-line", and then of the quotes that are left, ignore cost and go on your instincts on which contractor is likely to do the best job.

Thanks... We have to go with 80% due to the location and height of the room. I have been told that the system (Variable 2 stage furnace) most likely does qualify if paired with the XR15. Also told that the IAQ is not needed with the above system as it doesn't give any benefit if not paired up with a two stage a/c unit. Also, one guy quoted an 80BTU and the other a 100BTU, not sure why they have quoted them differently?

garyg, It is an either or situation XL14i with variable speed air handler, aluminum evaporator coil and Trane touch screen thermistat. Include 10 years parts and labor. No need to replace the lines because they are large enough. Heat Pump $ $9105 includes 2 -5K heat strips. or hybrid below 2 XL14i condensor with 2 Stage variable speed furnace $8208. XR13 with variable speed air handler, aluminum evaporator coil and Trane touch screen thermistat. Include 10 years parts and labor. No need to replace the lines because they are large enough. Heat Pump $ 7150 includes 2 5K heat strips. or XR13 condesory with 2 Stage variable speed furnace $6985. Gas rates are somewhat confusing for two reasong 1. They under reported July and caught in August. 2. we have distrubtion rate, gas supply rate,weather normalization adj rate, base rate adj and EE cost rate. All of which is different.

I agree, With a 2 stage system, there won't be much difference between the 2. I would suggest the NATE dealer if for no other reason than they take the time to be educated and really, the installing dealer makes a big difference in the satisfactory outcome. They will have more resources to fall back on if they run into a question on your job, and they will also generally have a more thorough understanding of the little things about unit start up and such that can make a big difference in the long term performance of the system. This is not to say that the other sources you have mentioned may not be fine. It is just my opinion that dealers who care enough to take continuing classes and training will probably care enough to satisfy you better. As to heatpump vs AC. The advantage of a good heatpump with a low ambient control is that you can run it for heat when the outdoor temperature is around 30 or higher. A good Thermostat will automatically switch your system to furnace from heatpump based on the outdoor temperature. You are insightful enough to realize that is it usually either cool and mild, or really cold where you are. That is why the heatpump is such a good fit.