Memphis, TN Central AC Replacement Cost, by SEER (2027)
Adjust your home size & electric cost in Memphis, TN
Start with the house: 2,150 sq. ft. calls for about 45,000 BTU, a 4-ton unit. In Memphis, the 16 SEER version of that system costs $10,390 to $12,520 installed and gives the lowest ten-year total of the ratings we price. Market size pushes Memphis up: about 4% over the statewide estimate for a city of around 619,000 people.
That figure covers a like-for-like change-out on ducts that still work: new condenser and matched coil, line set, electrical hookup, haul-away and startup. New ductwork, a panel upgrade or permit fees get priced on top.
Installed AC Prices in Memphis, 14 to 20 SEER
Memphis prices by rating: $8,250 to $9,940 gets 14 SEER, $10,390 to $12,520 gets 16 SEER, $16,230 to $19,560 gets 18 SEER and $22,070 to $26,600 gets 20 SEER.
Memphis Next to the Tennessee Average, by SEER
| System (4 ton) | Memphis | Tennessee average | Materials |
|---|---|---|---|
| 14 SEER | $8,250 - $9,940 | $7,950 - $9,590 | $5,160 |
| 16 SEER | $10,390 - $12,520 | $10,020 - $12,070 | $6,440 |
| 18 SEER | $16,230 - $19,560 | $15,640 - $18,860 | $9,920 |
| 20 SEER | $22,070 - $26,600 | $21,270 - $25,640 | $13,400 |
The condenser, coil and parts come to about $5,160 on a 14 SEER job and $6,440 on a 16 SEER job; everything else in the Memphis price is installation.
The Memphis Price Adjustment, Explained
Wages, insurance, fuel and shop rent all differ from one market to the next, and installers build those costs into every bid. The Tennessee average for 16 SEER is $10,020 to $12,070; with the 4% city adjustment, Memphis lands at $10,390 to $12,520.
62 ZIP codes in our database carry a Memphis address, all in Shelby County; each one gets this estimate. Collect three written bids for the same model, the same SEER and the same scope, then compare line by line instead of by the bottom number.
The Running-Cost Side of the Memphis Decision
Every cooling cost below starts from $0.165 per kWh, the Tennessee average and about 24% below the national average of $0.217. Because Tennessee rates grew about 2.15% a year over the last decade, each SEER point saves a little more every summer.
Each line is one SEER rating; touch or hover a year to read its dollar figures. The climb is the 2.15% yearly increase TN rates showed over ten years.
2026 = this season at TN's current rate. Each later year compounds the historic 2.15%/yr rise; costs rounded up to $10.
Cooling this house with 16 SEER takes around 4,709 kWh per season, or about $780. The same summer on a 9 SEER unit costs about $1,380.
Upgrade Payback Finder: Your Old AC vs a New One
Pick the unit you have and the one you are considering. Figures are for a 4-ton system at Tennessee electric rates ($0.165/kWh, rising 2.15% a year).
| Installed price of the new system | $11,290 |
| Electricity saved, first year | $600 |
| Saved over 10 summers (rates rising) | $6,580 |
| Payback | 16.1 years |
| Net after 10 summers | -$4,720 |
Savings alone fall short: 9 to 16 SEER is still $4,720 behind after 10 summers in TN.
These figures treat the whole install as the price of switching from a unit that still runs. For a dead unit, only the step up from a basic 14 SEER bid has to pay back.
Leaving a 9 SEER Unit Behind in Memphis
| 9 SEER | 14 SEER | 16 SEER | 18 SEER | 20 SEER | |
|---|---|---|---|---|---|
| Installation Cost | - | $8,970 | $11,290 | $17,640 | $23,980 |
| Electric Usage / Yr | 8,336 kWh | 5,317 kWh | 4,709 kWh | 4,236 kWh | 3,858 kWh |
| Electric Cost / Yr | $1,380 | $880 | $780 | $700 | $640 |
| Energy Savings / Yr | - | $500 | $600 | $680 | $740 |
| Payback (Rates Rising) | - | 15.4 years | 16.1 years | 21.0 years | 25.0 years |
| 10-Year Net (Rates Rising) | - | -$3,490 | -$4,720 | -$10,200 | -$15,860 |
Coming from 9 SEER, a 16 SEER replacement earns back its price in roughly 16.1 years of lower Memphis bills, with rate increases included.
Price Plus Running Cost: Memphis Totals
Buy Price vs 10-Year Running Cost: Total Cost of Ownership in TN
Three bars per rating: what it costs to install, what it costs to cool the house for 10 summers at Tennessee rates with the rate climbing 2.15% a year, and the sum. The rating with the shortest third bar costs the least to own. Tap or hover any bar to see the addition.
Lowest 10-year total in Tennessee: 16 SEER, $19,830 ($11,290 up front, $8,540 in electricity).
Energy inflation is built in: season one is priced at today's TN rate, and each of the nine seasons after it costs 2.15% more than the one before, the historic yearly increase. The install figure is the typical installed price on this page. Parts and totals are each rounded up to $10, so the parts may sum $10 above the total. 14 SEER is left out: it is below the federal minimum for new central AC installs in Tennessee.
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Matching the System to Memphis Weather
In Tennessee, which our map files under climate region 3, summer days average roughly 89°F and winter days roughly 47°F. Those statewide figures feed the Memphis numbers. Neither cooling nor heating dominates in Memphis, so ask installers to size for both loads instead of matching the old unit.
Climate zones run from 1 (cool) to 5 (hot); Tennessee is in Zone 3.
About 1.4° south of the northernmost city in this Tennessee guide, Memphis typically gets a longer cooling season.
Moisture removal matters in Memphis; a correctly sized system with long, steady cycles keeps indoor humidity down.
Clarksville is the nearest guide city to Memphis, roughly 180 miles to the northeast.
Most of a Memphis winter is within a standard heat pump's comfort zone; whether the backup should be natural gas or electric depends on local rates. Square footage alone is a shortcut; a real load calculation for a Memphis home counts windows, insulation, orientation and leakage.
What Memphis Housing Means for the Job
Ducts in Memphis homes often run through a hot attic or a crawlspace, where they lose cooling. Sealing and insulating them is a cheap add-on to an upgrade. City logistics such as permits, parking and hoisting equipment can add a day to a Memphis install.
One outdoor unit can feed several ductless heads, a common fix for Memphis homes without ducts.
Timing, Permits and Paperwork in Memphis
Do not wait for a breakdown. When an old unit quits during a Memphis heat wave or cold snap, there is no time to gather competing bids. A permit and inspection document that the Memphis install meets code, which helps when the house is sold.
Nearby Tennessee Markets
The 16 SEER price in nearby Tennessee cities:
- Nashville, TN (east, 190 mi): $10,410 to $12,540
- Knoxville, TN (east, 340 mi): $10,230 to $12,330
- Chattanooga, TN (east, 270 mi): $10,220 to $12,320
- Clarksville, TN (northeast, 180 mi): $10,220 to $12,320
Surrounding towns such as Germantown, Bartlett, Cordova, Millington and Collierville usually draw quotes in the Memphis range.
For the statewide view, including efficiency comparisons and ten-year totals, read the Tennessee HVAC cost guide. To size a system for your own house, use the AC size calculator; to compare heating and cooling options, try the heat pump calculator.
Use these numbers to budget. A licensed contractor's load calculation and written quote have the final word.
Quick Answers
Figures below use Tennessee averages; energy prices as of October 2026.
Does a heat pump heat for less than natural gas in Tennessee?
Not in Tennessee at today's prices. Natural gas delivers 63,793 BTUs per dollar and a COP-3 heat pump 62,228. Power would need to fall under about 16.0¢ per kWh for the heat pump to win (the Tennessee average is 16.5¢), or the unit would need a higher COP.
Is electricity in Tennessee expensive compared with other states?
At 16.5¢ per kWh, Tennessee runs 24% under the national figure of 21.7¢, the 9th cheapest among the 50 states and DC. Every AC and heat pump cost on this page moves with that rate.
Is a cold-climate heat pump needed in Tennessee?
It helps. With winter lows around 28°F, a standard heat pump covers most Tennessee nights, but its output drops in cold snaps; a cold-climate model or backup heat fills that gap.
What does a heat pump save over electric baseboard in Tennessee?
Roughly two-thirds of the bill at COP 3. With the Tennessee average at 16.5¢ per kWh, baseboard heat costs about $48.21 per million BTU and a heat pump about $16.07.
What is the best season to replace an AC or furnace in Tennessee?
The shoulder seasons, spring and fall, ahead of need. Summer days in Tennessee average about 89°F, so have cooling work done by early spring. The first heat wave and the first cold snap fill every installer's calendar; replacing on your own schedule leaves room to compare quotes.
Is it smart to replace the furnace and AC together?
When both are aging, generally yes: one visit, one labor charge, and a matched coil and condenser, which the efficiency rating assumes. If one is fairly new, price each job on its own.
Check it for your own home: Central AC cost estimator or Heat pump cost calculator.
More HVAC Cost Guides
Tennessee HVAC costs (statewide) · HVAC costs in every state
