For many facility managers and plant owners in Malaysia, one critical question eventually arises:
Should we overhaul our existing chiller, or is it time to replace it entirely?
Yes, to decide between chiller overhaul vs replacement is most headache questions for most of us.
With rising energy costs, aging equipment, and pressure to avoid downtime, making the wrong decision can result in unnecessary capital expenditure or recurring operational losses.
This article explains the real differences, costs, risks, and decision factors between chiller overhaul and replacement—so you can make the most cost-effective choice for your facility.
What Is a Chiller Overhaul?
A chiller overhaul is a major refurbishment of an existing chiller to restore performance and reliability without replacing the entire system.
Typical overhaul scope includes:
- Compressor inspection and refurbishment
- Replacement of worn bearings, seals, and gaskets
- Tube cleaning or retubing (evaporator & condenser)
- Control system repair or partial upgrade
- Electrical component replacement
- Oil analysis and system flushing
An overhaul is far more extensive than routine maintenance, but significantly cheaper than full replacement.
Related reading:
Chiller Preventive Maintenance Checklist for Facility Managers
What Does Chiller Replacement Involve?
Chiller replacement means removing the existing unit and installing a new chiller system.
This typically includes:
- New chiller equipment
- Dismantling and disposal of old unit
- Piping and electrical modifications
- Crane lifting and rigging
- System commissioning and testing
- Operator retraining
Replacement often delivers higher efficiency—but comes with high CAPEX, longer downtime, and project risk.
Cost Comparison: Overhaul vs Replacement
Item | Overhaul | Replacement |
Upfront cost | Low to medium | High |
Typical downtime | Short | Long |
Energy efficiency gain | Moderate | High |
System lifespan extension | 5–10 years | 20–25 years |
Project complexity | Low–medium | High |
Risk level | Lower | Higher |
For most Malaysian facilities, overhaul costs are typically 20–40% of full replacement cost, depending on chiller size and condition.
Energy Efficiency Considerations
Energy efficiency is often the main driver behind replacement decisions.
- Overhauls can recover lost efficiency caused by fouling, wear, and control drift
- Replacement introduces newer compressor technology, VSDs, and advanced controls
However, if your chiller’s efficiency loss is mainly due to:
- Dirty tubes
- Poor water treatment
- Control issues
Then overhaul + optimisation may achieve 70–80% of the efficiency benefit at a fraction of the cost.
Related reading:
How to Reduce Energy Costs with Chiller Optimisation
Downtime & Operational Risk
Downtime risk is often underestimated.
- Overhaul work can often be staged or completed within a short shutdown window
- Replacement may require:
- Crane scheduling
- Structural checks
- Extended system outages
For factories, hospitals, or data-critical operations, downtime risk alone may justify overhaul first.
When Chiller Replacement Is the Better Choice
Replacement becomes the smarter option when:
- Chiller is over 25 years old
- Refrigerant is obsolete or restricted
- Repeated major failures occur
- Energy efficiency is far below modern standards
- Spare parts are difficult or costly to source
Guidance from ASHRAE indicates that lifecycle cost—not age alone—should guide replacement decisions.
A Practical Decision Checklist
Ask these questions before deciding:
- Is the compressor still mechanically viable?
- Are heat exchanger tubes structurally intact?
- How much efficiency has been lost—and why?
- Can overhaul solve the root cause?
- What is the real cost of downtime?
- How long must the system last after intervention?
If you cannot confidently answer these, a professional assessment is recommended.
Professional Assessment Before You Decide
A proper chiller condition assessment typically includes:
- Performance benchmarking
- Oil and vibration analysis
- Tube inspection
- Electrical and control evaluation
- Energy consumption analysis
Conclusion: Overhaul or Replacement?
There is no one-size-fits-all answer.
- Overhaul offers faster ROI, lower risk, and shorter downtime
- Replacement delivers long-term efficiency and future-proofing
The most cost-effective decision depends on condition, usage, energy cost, and operational risk—not just age.
Need Help Making the Right Decision?
CrystalAir provides professional chiller condition assessments to help Malaysian facilities decide between overhaul and replacement—based on data, not assumptions.