When purchasing a new workshop air compressor, you need to consider the installation costs on top of the purchase cost.
In this article, we outline the various factors that influence installation costs, including the compressor size, layout, and piping. We also share examples of real projects to compare the costs of installation.
Factors that influence installation costs
System features
Most installations require a refrigerated dryer, filtration and air receivers as well as the compressor itself. This is easier to complete all at the same time but may increase the installation time and costs. However, installing these additional features is often worth the added cost, especially when it comes to efficiency and air quality.
For applications that do not require high air purity, a refrigerated dryer may be sufficient. For example, this air will meet ISO 8573-1: 1:4:0 to 2:7:2 standards for manufacturing, automotive repairs, and construction.
However, for applications requiring higher air quality (ISO 8573-1: 2:1:0 to 2:3:1) the layout would include a series of filters, a refrigerant dryer, a carbon tower, and a desiccant dryer. For example, this system would be sufficient for most pharmaceutical, electronics, and food and beverage applications. 
Size
If you install a large air compressor, you may need to rearrange your plant or add flooring reinforcements. Large air compressors are also heavy and bulky, requiring more labour to install. However, it is worth noting that larger compressors may be more efficient for your operations and therefore be worth the extra installation costs.
Layout
The layout of your air compressor system may influence the installation costs, depending on complexity and labour. Firstly, if the compressor is far away from the end use, you will need longer pipes and may even need pressure boosters. To reduce installation costs, we recommend designing a concise piping layout as near to your end-use as possible.
Installation cost comparisons
Depending on the system, a small compressor typically costs between $550 and $1,500 + GST to install, and up to $7,500 + GST if a complete enclosure is required. For a large air compressor, installation typically costs between $1,000 and $3,500, and up to $12,000 + GST if a complete enclosure is required. Below, we compare three different installations to highlight the factors that may drive these costs up.
Low-cost
With a standalone compressor, the installation costs will generally be lower because there are no additional dryers or filtration systems to install, only the compressor unit itself. Costs will also be lower when the compressor is installed in a spare corner of the workshop with quick piping connections.
For a small 10hp air compressor, installation will generally cost between $550 to $750 + GST. For a larger 50hp compressor, the installation cost will be approximately $1,000 to $2,000 + GST.
Medium cost
When a client needs a refrigerated dryer and filtration along with the air compressor, the installation costs will increase. This is because these components require additional piping and configuration.
For a small 10hp compressor, the installation costs would be between $1,200 and $1,500 + GST. For a large 50hp compressor, installation would cost between $2,500 and $3,500 + GST.
Higher cost
If the client needs an air compressor, refrigerated dryer, filtration, and a designated compressor enclosure, the installation costs will increase again. If there is nowhere to place the compressor, an enclosure or plant room is a great solution.
For a small 10hp compressor, this installation would cost roughly $3,500 to $7,500 + GST to install. For a large 50hp compressor, this installation would cost between $8,000 and $12,000 + GST.
Design and installation for an Industrial Air Compressor NZ
From concept to completion, we will work with you and your stakeholders to design the most efficient system. This process involves mapping out your plant and noting any obstacles before creating a customised compressed air solution. Using the most efficient compressor for your application, we will ensure every component works at its best.
Then, based on your requirements, we will project-manage the entire installation to ensure everything goes smoothly. Once your air system is installed, we also offer vibration analysis, air quality testing, leak detection, air audits, servicing, and spare parts. Our backup services are available 24/7, 365 days a year, giving you peace of mind at all times.
For more information download our Air Compressor Layout Guide today. Alternatively, reach out to our team of experts to discuss your project in more detail.
Get more information on how to optimise your compressed air systems for efficiency and compliance. This guide includes key practices and layouts for various industrial applications.
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