Commercial vs Residential HVAC: What’s the Difference?

Commercial HVAC Installation

Residential HVAC Installation

Commercial installation projects typically take a lot more time compared to residential ones—often stretching across several weeks. Planning these installations requires careful consideration, especially when deciding how to arrange different units.

Commercial HVAC systems have a bigger job, needing to heat or cool much larger spaces. Depending on the building layout, it might make sense to go for a multi-zone system or larger units.

Now, where these systems are placed is another difference.  For commercial setups, technicians usually put the units on the roof. Why? Well, these systems are bigger, so there's not much space outside. Plus, they tend to be louder. To avoid bothering people with the noise, they stick them on the roof, making it less likely to disturb anyone.

Overall, the installation process is more intense for commercial HVAC systems.

For a residential HVAC company, getting a unit up and running is a quicker job for your technicians. It usually takes a few hours to a couple of days.

Putting in residential HVAC gear is pretty straightforward. You'll find units in the yard, next to the building, or in the basement or attic for heating systems. Most jobs only need one or two technicians.

For instance, two licensed technicians can set up a new gas furnace in just an afternoon. If it's a brand-new central AC system and you're also putting in new ductwork, it might take three days or more. But if it's just connecting a new air conditioner to existing ductwork, a few hours could do the work.

Residential providers tend to serve more customers in less time because the work isn't as big as it is for commercial systems. With that, there also comes a major difference in wages for both commercial-level and residential-level technicians. Let’s cover it later.

Commercial HVAC Repair

Residential HVAC Repair

A commercial HVAC company often needs to send repair technicians more frequently. For instance, the HVAC system in a data center runs all the time due to constant server activity. To prevent overheating, ongoing AC and ventilation are crucial.

Components are likely to break down occasionally as a result, a situation less common in residential units. Commercial HVAC customers may be more careful about system breakdowns since it could impact their business. So, it makes sense to have commercial technicians available for emergency repairs, even outside regular business hours.

Commercial repairs usually involve contractors sending out service agreements.  These agreements state that regular maintenance sessions will occur regularly. The goal is to prevent more expensive repairs in the long run.

Repairs for residential HVAC systems, much like installations, are simpler tasks. This means your team can wrap them up more quickly. As a result,  the repairs likely won't be as pricey or time-consuming as the ones for commercial systems. This leaves you with more time for other services or to take on additional repair customers.

Emergency repairs are part of the deal with residential HVAC services too. However, unlike with commercial clients, your company might not have a contract for these repairs. In these situations, homeowners would probably turn to emergency HVAC repair companies.

Residential HVAC companies can choose to offer emergency repairs, adding to revenue and setting themselves apart from competitors. However, the decision of whether your business is always on call or not is up to you.

Residential HVAC: Wages

Commercial HVAC: Wages

It's true that residential HVAC workers typically earn less than their commercial field technicians. This is often because commercial technicians usually have advanced qualifications and fixed corporate pay structures. Additionally, the seasonal nature of residential work plays a role. In peak seasons, workers receive decent pay and are consistently employed, but during off seasons, there may be less work and fewer service calls, affecting overall income.

On a positive note, residential technicians have the opportunity to increase their hourly pay through commissions on additional parts or replacements they sell. This aspect emphasizes the importance of good communication skills for residential techs.

Residential projects are generally quicker to complete compared to commercial ones, allowing residential HVAC techs to handle more jobs in a workday and ultimately increase per-hour pay. Regardless of the sector, technicians with solid problem-solving skills and extensive knowledge can expect higher pay.

Commercial HVAC professionals generally earn more than their residential field techs, enjoying the advantage of a steady paycheck from a continuous company payroll. The stability of pay in the commercial sector is not subject to seasonal fluctuations or networking challenges, ensuring consistent employment as long as one is affiliated with a company.

However, breaking into the commercial HVAC field requires effort and, in some cases, financial investment. Commercial projects often demand significant experience and certifications, and educational programs for HVAC can come with high fees that may not be suitable for everyone.

A report from the Bureau of Labor Statistics (BLS) suggests that job prospects for HVAC technicians who have completed professional educational training programs are more promising than those who have not undergone such training.

Success in a commercial HVAC career is often tied to participating in a training program and accumulating experience, serving as the ultimate salary booster in the field.

Residential HVAC Market Growth

Commercial HVAC Market Growth

A GVR report found that the U.S. HVAC systems market was worth $15.16 billion in 2020 and is predicted to grow at a rate of 6.0% annually from 2021 to 2028.

The residential HVAC sector globally makes up 40% of the total HVAC market.

Since the pandemic, there has been a small decrease in the overall market, but as of 2021, there's a rising demand for new ventilation systems. The shift to working from home due to the pandemic has also boosted the demand for residential HVAC as people seek better working environments.

As reported by MRFR, the commercial HVAC market is expected to reach $142.97 billion by 2027, growing at a rate of 6.86% from 2021 to 2027. The market was valued at $97.31 billion in 2020.

The commercial HVAC market faced challenges in 2020 due to the COVID-19 outbreak, leading to a decline in sales.

However, with the global economy recovering, industries, especially construction, are returning to full capacity. Many companies are now hiring commercial technicians with attractive benefits like healthcare, salary increments, and stable work hours.