The scrap air conditioner (AC) business is a lucrative niche within the recycling industry that thrives on the recovery of high-value non-ferrous metals. With copper prices reaching record highs in early 2026, a single discarded unit is no longer “junk”—it is a bundle of commodities including copper, aluminum, and steel.
Whether you are looking to start a small-scale collection service or a dedicated processing facility, here is a comprehensive guide to the scrap AC business.
1. The Value Inside: What Are You Selling?
An air conditioner is essentially a “metal sandwich.” To maximize profit, you must understand the difference between selling a unit whole versus dismantled.
| Component | Material | Value Notes |
| Coils/Radiators | Copper & Aluminum | Known as “ACR” (Aluminum Copper Radiators). This is the “gold mine” of the unit. |
| Compressor | Copper & Steel | A heavy sealed unit. You can sell it whole or cut it open to extract the copper windings. |
| Tubing & Wiring | High-Grade Copper | Pure copper lines and insulated wire are high-demand items at any scrap yard. |
| Fan Motor | Copper & Steel | Electric motors fetch a specific price per pound higher than mixed iron. |
| Outer Casing | Light Iron / Shred | The steel shell has the lowest value but accounts for a lot of the unit’s weight. |
Pro Tip: Selling a window unit whole might get you $5–$8, but dismantling it can often triple that value to $15–$25 by separating the clean copper and aluminum.
2. Market Dynamics & Profitability (2026 Trends)
As of February 2026, the market is seeing a “domestic cold, external hot” pattern. While new unit sales have slowed in some regions, the value of recycled materials—specifically copper—has hit peaks of nearly $3.50–$4.00 per pound for high-quality scrap.
Profit Margins: Successful scrap AC businesses typically aim for a 10–20% profit margin. The key to growth in 2026 is Volume + Sorting. The more you “clean” the metal (removing steel ends from copper pipes, for example), the higher the price per pound the scrap yard will pay you.
3. Compliance and Legal Requirements
You cannot simply start hacking away at AC units in your backyard. Refrigerants (Freon/HCFCs) are hazardous to the environment and strictly regulated.
- EPA Section 608 (US) / National Policies: It is illegal to intentionally vent refrigerant into the atmosphere. You must use certified recovery equipment to “evacuate” the gas before dismantling the unit.
- Documentation: Most reputable scrap yards in 2026 require a signed statement or certificate proving the refrigerant was professionally recovered before they will buy the unit.
- Safety Gear: Always use cut-resistant gloves and safety glasses. Old coils can be incredibly sharp, and pressurized lines can cause “refrigerant burn.”
4. How to Start: Step-by-Step
- Sourcing: Partner with HVAC contractors. They often have “dead” units they want to get rid of quickly. You can offer a free haul-away service, which saves them labor and disposal fees.
- Tool Kit: You will need a Sawzall (reciprocating saw), a drill with various bits, wire cutters, and a weighing scale.
- The “Clean-Up”: Cut the steel brackets off the ends of the aluminum/copper radiators. Scrap yards pay significantly more for “clean” ACR than “dirty” (with steel attached).
- Networking: Build a relationship with a local scrap yard. In 2026, “peddlers” (small-scale collectors) who bring in consistent, well-sorted loads can often negotiate better-than-advertised rates.
5. Challenges to Watch For
- Price Volatility: Scrap metal prices change daily. It’s often better to stockpile when prices are low and sell when they spike.
- Transport Costs: With rising fuel prices, your “route density” matters. Don’t drive 50 miles for one unit; wait until you have a full truckload.