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Heating & Cooling System Replacement in San Jose, CA
Full-service replacement of aging furnace, AC, and HVAC systems in San Jose and across the Bay Area for homes and businesses.
Serving Santa Clara & San Mateo Counties
The Smarter Way to Replace Your Heating and Cooling System
When a furnace or AC reaches the end of its life, one more expensive repair on failing equipment rarely pays off. Replacing the system restores reliable comfort, lowers operating cost, and, when the work is done by a certified contractor, can qualify for state and local rebates that cover a substantial part of the cost. The mild Bay Area climate also opens options that were not on the table when your original system was installed, like an all-in-one heat pump.
Ozone Service replaces heating and cooling systems across across San Jose, Sunnyvale, Palo Alto, Mountain View and within Santa Clara & San Mateo Counties, handling system selection, load calculation, installation, old-equipment removal, and any electrical work under one contract, with a warranty up to 12 years on parts and labor.
What's Included in Every Replacement
Every system replacement we complete includes the following as standard scope, not as paid add-ons:
Load Calculation
We calculate the exact heating and cooling load for your home before selecting equipment. An oversized system short-cycles and wears out early. An undersized system runs constantly and never reaches setpoint. Correct sizing is the single biggest factor in how the new system performs over its life.
Ductwork Assessment
Existing ductwork is inspected for leaks, sizing, and airflow balance. If the ducts are sound, we reuse them. If they are undersized or damaged, common in older Bay Area homes, we redesign and replace so the new system delivers the efficiency you paid for.
Electrical Check
Modern equipment can have different electrical requirements than the system it replaces. We assess your existing panel during the estimate. In most cases a panel replacement is not required, and we help you avoid an unnecessary upgrade cost. If a change is genuinely needed, our licensed electricians handle it in-house, with no subcontractors and no split accountability.
Removal and Disposal of Your Old System
We remove and haul away the equipment we replace and leave the space clean. No coordinating a separate pickup, no old furnace sitting in your garage.
Permits and City Inspection
Every replacement is permitted through the relevant city or county building department. We schedule and pass all inspections before the job is closed out. Our inspection pass rate across San Jose and the Peninsula is 100%.
System Commissioning
After installation, we verify refrigerant charge, airflow, thermostat calibration, and system operation before we leave. This is where shortcuts usually get taken and where long-term reliability is either built in or lost.
Up to 12-Year Warranty
Parts and labor, in writing. If something fails within the warranty period, we fix it, with no diagnostic fees and no labor charges.
Which System Should You Replace Yours With?
Not sure which one you need? We measure static pressure and airflow during the free estimate and tell you the smallest fix that actually solves the problem, not the biggest.
New Furnace + AC
$7500+
Best for: homes staying with gas heat and existing ductwork in good shape.
New matched furnace and AC through your existing ducts. Familiar setup, lowest upfront cost, straightforward when the ducts are sound.
All-in-One Heat Pump
Most Efficient
$10 900+
Best for: homes with ductwork that want the lowest operating cost and the largest incentives.
One electric system for heating and cooling, lower running cost than a furnace plus separate AC, well suited to the mild Bay Area climate.
Ductless Mini-Split
Most Flexible
$3900+
Best for: homes without ductwork, additions, ADUs, and rooms that run hot or cold.
Wall-mounted units per zone, each controlled independently. No ductwork required, no energy wasted on unused rooms.
What a Heat Pump Actually Costs After Incentives
The gross cost of a heat pump installation is only part of the picture. Bay Area homeowners have access to three stacking incentive programs that significantly reduce out-of-pocket cost.
We identify which programs apply to your project, ensure the installation meets all rebate program requirements, and handle the documentation. Most contractors don’t touch the paperwork – we do.
Sample Сalculation
San Jose homeowner, heat pump installation, standard income:
SVCE
$2,500
CA Energy-Smart Homes
$5,750
Net savings
$8,250
Rebate availability changes quickly and is often first-come, first-served or waitlisted. We calculate your exact eligibility and current stacking options as part of the free estimate – no guesswork, no surprises.
This Replacement May Cost Less Than You Think
Bay Area utility programs and state energy incentives may offset a significant portion of your replacement cost. We check what applies to your home and handle all the paperwork as part of your free estimate at no charge.
From First Call to Final Inspection
Step 1
Free Estimate and System Assessment
We visit your home, assess the failing system, measure the space, and evaluate your ductwork and electrical panel. You leave with a written scope and price.
Step 2
System Selection
We recommend the right replacement for your home, size, brand, and configuration, based on load calculation. We work with Daikin, Goodman, Mitsubishi, Carrier, Payne, Gree, Bryant, Harvest, and others.
Step 3
Permits
We pull all required permits through the city or county building department before work begins.
Step 4
Installation and Removal
Most replacements are completed in 1-2 days. We install the new system and remove and haul away the old equipment. Projects that include ductwork replacement or electrical work may take longer, and we give you a specific timeline during the estimate.
Step 5
Inspection and Commissioning
We handle and manage the entire City inspection process. We commission the system, verifying refrigerant charge, airflow, and operation, and walk you through thermostat setup and maintenance basics.
Why Bay Area Homeowners Choose Us to Replace Their System
HVAC and Electrical Under One Roof
A system replacement can touch the electrical side, and when two separate contractors split HVAC and electrical, accountability disappears the moment something goes wrong. We carry both licenses. One team handles the full scope, and one warranty covers everything.
We Handle the Rebate Paperwork
Most HVAC contractors install the system and leave the incentive process to you. We know the current program requirements, make sure the installation qualifies, and file the documentation ourselves so the savings actually land.
100% Inspection Pass Rate
Every installation we complete passes city inspection on the first attempt. That is the result of pulling proper permits, sizing equipment correctly, and not cutting corners on refrigerant charge or electrical protection.
Recent Project: Redwood City
A full system replacement, an old furnace and AC swapped for a heat pump with complete ductwork replacement. Old undersized ducts were removed, and new ductwork was designed and sealed for correct CFM room by room. The homeowner's net out-of-pocket cost dropped significantly once incentives were applied. One team, start to finish, under one warranty.
Authorized Dealer & Installer
Real Repairs, Real Results
Our in-house team finished all of the projects shown here. They correctly diagnosed the problem, fixed it, and checked it before we left the house.
What Our Customers Say
Commercial System Replacement
We replace heating and cooling systems for commercial properties across the Bay Area, including office buildings, retail spaces, multi-unit residential, and light industrial. Commercial replacements follow the same process: load calculation, proper permitting, licensed installation and removal, and city inspection. For commercial inquiries, contact us directly to discuss scope and timeline.
Frequently Asked Questions
Should I repair my system or replace it?
As a rule of thumb, if a repair costs more than a third of a new system, or the equipment is past its expected service life, replacement is the better investment. Repeated repairs on failing equipment rarely pay off. During the free estimate, we give you an honest read on whether your system is worth one more fix or ready to be replaced.
How do I know my system needs replacing?
Common signs are rising energy bills with no change in usage, uneven temperatures between rooms, frequent breakdowns, a system more than 12 to 15 years old, or a unit that no longer holds refrigerant. Any one of these on its own may just need service. Several together usually point to replacement.
Should I replace with the same type of system or switch to a heat pump?
It depends on your home and your goals. A like-for-like furnace and AC replacement is simpler and lower upfront. Switching to an all-in-one heat pump usually qualifies for the largest incentives and lowers operating cost, and the Bay Area climate suits it well. We lay out both options with real numbers so you can decide.
Will replacing my system require an electrical panel upgrade?
Not usually. This is one of the most common misconceptions about upgrading heating and cooling equipment. In most Bay Area homes the existing panel handles a replacement system without any changes, and we help you avoid an unnecessary cost. In the smaller number of cases where a change is genuinely required, our licensed electricians handle it in-house under the same contract and warranty.
What happens to my old equipment?
We remove and haul it away as part of the job and leave the space clean. You do not need to arrange a separate pickup.
What warranty do you provide?
Up to 12 years on both parts and labor, covering the equipment and the installation. If something fails within the warranty period, we diagnose and fix it at no charge.
Get a Free Estimate for Your System Replacement
Send us your request and we’ll get back to you shortly.
- go@serviceozone.com
- Serving Bay Area, 24/7
Serving the Greater Bay Area
* and other cities in Santa Clara, San Mateo, and Alameda counties
