Mini-splits are a relatively modern home cooling option, and many homeowners see them as just another budget option, like window units. The reality could not be further from the truth, as mini splits use some of the most innovative cooling tech to provide far more effective cooling in a much more attractive, easy-to-install package.
One of the other great aspects of a mini split installation is the return on investment for homeowners who purchase them. The ROI of mini splits comes in a few different forms, but we will break it all down in this guide to clarify exactly how a new mini split can actually net homeowners positive value.
ROI of Mini Splits
There are a few ways that mini splits can make a net positive financial impact, but they differ in total value as well as the form that value takes. To make it easier to understand, refer to the table below:
| ROI of Mini Splits by Source | ||
| Source | Description | Value |
| Energy Savings | The amount of energy saved by using a mini split instead of alternative forms of cooling, like window or central AC | An average of 30% of annual energy costs |
| Home Value Increase | The increase in the value of your home after installing a mini-split AC | 5-10% of your home’s value |
Overall, mini-splits can be a significant investment, especially over the long term when energy savings are allowed to compound. So, in addition to efficient, effective cooling, property owners can also net a positive ROI.
Example Use Case
Let’s say you own a $750,000 home, and your AC bill costs an average of $100/month. Your central AC system goes out, and you install two mini splits to replace it for $6,000. This is how the ROI breakdown could look for you over a 10-year sample period:
AC Bill Savings: $3,600
Home Value Increase: $37,500*
Total ROI: $41,000
*Assuming a 5% increase in base home value and ignoring any unrelated increases in property value over the 10-year period (which means it could be even more!)
Other Benefits of Mini Splits
Mini splits offer many other benefits over other forms of AC as well, including:
- Energy Efficiency: Mini-splits often offer better energy efficiency than both central and window AC units.
- Cooling Effectiveness: Mini-splits offer far better cooling than window units, and multiple mini-splits can even compete with central AC.
- Zoned Cooling: A multiple mini-split setup allows property owners to cool different parts of their homes more or less, saving energy and focusing cooling power on the rooms that need it most.
- Ductless Installation: Mini splits require one small outdoor unit, a moderately sized indoor wall unit, and a single conduit between them. This is far simpler than central AC systems that require ductwork throughout the entire home.
Regardless of what type of property you live in, or what AC system you are comparing it against, a mini split offers unique value that is hard to beat. Small apartment units can often use mini splits as a more powerful and efficient option than a window unit, and larger single-family homes can set up a few mini splits for simpler installation and energy-efficient zoned cooling.
Mini-Split Installation with Victory Skaggs
If you’re looking for a trustworthy local team to help you capitalize on the ROI of mini splits, call our Victory Skaggs team. Not only do we provide competitive pricing and friendly service, but all of our local teams are backed by almost a century of proud history serving New York residents. As a result, we combine the resources, a broad range of HVAC service options, and a high standard of quality of a big business alongside the geographical expertise, familiarity, and personal touch of a local handyman.
Victory Skaggs offers full-service HVAC to all of the following areas:
