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.

The furnace model number with the XR16 is an XC80. Very similar to the XV80 but communicating. Must be a mistake. TCONT803 is a fine thermostat to use with the XR16 air conditioner and furnace. Overall, I do not agree with the equipment matchups proposed with the furnaces and air conditioners. Oversized furnace on both systems, and oversized coil to achieve marginal efficiency gains on the XR16 system. I realize you may not understand all the implications of oversized equipment, but it is a big deal for comfort, efficiency and reliability. All things considered I still recommend the heat pump system. This post was edited by ryanhughes on Wed, Apr 24, 13 at 13:54

"This year (upstairs unit) it seems to run all the time even with the new charge." Many things could be wrong; check structure- insulation, air infiltration, etc. Also, duct system sizing & airflow through diffusers'. Return filter, 12x36 is 432-sq ins; 1-sq in of filter area per 2-CFM of airflow. 2.5-ton 1000-CFM is 500-sq ins of filter area. 30C indicates a 2.5-Ton. I do not talk about what pricing ought to be. - udarrell Here is a link that might be useful: Sizing & other A/C Factors

Here are some numbers based on the utility rates you provided. This shows how much it costs to produce 100,000 BTUs of heat. These numbers are guidelines and will have some variations. 95% AFUE furnace @ &0.76/therm - $0.80 Heat pump with 2.5 COP @ $0.096/KWh - $1.25 ($1.00 with 20% reduction) Heat pump with 3.0 COP @ $0.096/KWh - $0.94 ($0.75 with 20% reduction) The heat pump costs is about the same as the furnace at temperatures where the COP is above 3.0 and the 20% electricity rate reduction. I think you should get the 95% AFUE furnace, and upgrade the AC to the equivalent model heat pump for an extra $300 - $500. You don't have to ever use the heat pump in heating mode, but you will always be getting a 20% break on your electric bill. In the event that gas prices go up, you will have to option to use the heat pump when it costs less to operate. It is my opinion that low gas rates will be with us as long as fracking is allowed. But electricity prices tend to go up over time.