How much does air conditioning cost to install?

Is one of the most common questions we get asked, especially by businesses and commercial property owners. At ICE, while we also install air conditioning in homes, the majority of our work is in the B2B (business-to-business) sector.

In this article, we focus on answering how much does air conditioning cost to install for businesses and commercial buildings in the UK.

Air conditioning has become the preferred way to heat and cool commercial offices. Unlike traditional gas-fired boilers and radiators, air conditioning systems provide year-round temperature control, offering both heating and cooling.

There are many types of systems available from evaporative cooling to chilled water and large central HVAC units, but the most common for offices and retail spaces are comfort cooling/heating systems, such as ceiling-mounted cassette units or wall-mounted units.

Let’s explore typical costs and the key factors that influence pricing.

Factors That Affect Air Conditioning Installation Costs

Type of Indoor Unit

The choice of indoor unit significantly affects cost. Common options include:

  • Cassette units – Installed in false ceilings, these units distribute air in four directions, making them ideal for open-plan offices. They typically come in sizes that fit either one or four ceiling tiles.
  • Ducted systems – Air is distributed through ductwork, which may be hidden or exposed as a design feature. These systems are more expensive due to additional materials and labour required.
  • Wall-mounted units – Fixed directly to walls, these units are simpler to install and usually cost less than cassette or ducted systems.
  • Other types – Less common options include floor-mounted or under-ceiling (mouth-organ style) units.

Type of System

The type of air conditioning system you choose also influences cost:

  • Single split systems – One indoor unit connected to one outdoor unit. Simple and cost-effective, ideal for small spaces.
  • Twin/Triple/Quad split systems – Multiple indoor units in the same room connected to a single outdoor unit, with one controller. More units increase both equipment and labour costs.
  • Multi-split systems – Multiple indoor units across different rooms connected to one outdoor unit. Each room can have its own controller, but all units operate in the same mode (heating or cooling).
  • VRF/VRV systems – Suitable for large buildings with multiple rooms and floors. Heat recovery types allow different rooms to operate in different modes, while heat pump types operate in the same mode. These are the most flexible and expensive systems.

Size of Space and Heat Load

Larger spaces or rooms with high heat loads such as offices with many computers, extensive glazing, or machinery require higher-capacity units and more indoor terminals, increasing both equipment and labour costs.

Installation Complexity

Costs may rise depending on installation challenges, including: height of units (requiring access equipment), extensive ductwork, long distances between indoor and outdoor units, electrical upgrades, limited building access, or restricted working hours.

Brand of Air Conditioning

Premium brands like Mitsubishi Electric and Daikin cost more than Midea, Toshiba, Samsung, or Panasonic. ICE avoids low-quality brands that may fail prematurely.

Energy Efficiency Requirements

High-efficiency systems cost more upfront but reduce energy bills and carbon footprint over time. Modern businesses often prioritize energy-efficient models, which can be worth the extra investment.

A Rough Guide: How Much Does Air Conditioning Cost to Install?

Commercial air conditioning installation in the UK typically costs between £1,500 and £50,000+, depending on building size, system type, and installation complexity. Large office blocks, warehouses, or multi-floor buildings naturally require more powerful systems, increasing costs.

For guidance:

  • Small office: £1,500 – £4,500
  • Medium office (up to 10 people): £3,500 – £10,000
  • Large office (up to 30 people): £8,000 – £20,000
  • Small retail space: £3,500 – £10,000
  • Large retail unit: £8,000 – £20,000
  • Multi-floor or large commercial buildings: £50,000 – £350,000+

These costs generally include equipment, installation, labour, and commissioning.

 

Real-World Examples from ICE (2025)

Below are some real world example of costs for system provided by ICE in 2025:

  • Split wall-mounted system in a small office with several people and computers – £3,016 + VAT
  • Split cassette system in a small office – £3,945 + VAT
  • Twin split cassette system in a High Street retail store (premium brand, high access) – £8,037 + VAT
  • Twin split cassette system in a medium open office (12 people) – £5,257 + VAT
  • Large open-plan office served by 4 ducted split systems – £8,535 + VAT
  • Multi-split system with wall-mounted units in 3 small offices – £6,735 + VAT
  • Heat recovery VRF system in lab areas with 17 ducted units – £77,305 + VAT

Final Thoughts

So, how much does air conditioning cost to install for commercial buildings? In the UK, costs can range widely, from around £1,500 for a small office to £350,000+ for large multi-floor commercial properties, depending on building size, system type, and installation complexity.

While the upfront investment may seem significant, commercial air conditioning delivers long-term benefits, including improved employee comfort, energy efficiency, and a better experience for customers and clients.

For a precise assessment of your building and a tailored proposal, speak with the experts at ICE. We can provide a detailed quote that considers your space, system requirements, and energy efficiency needs—ensuring you get the best solution for your business.