Google Local Services Ads for HVAC: 2026 Guide

A plain-English guide to Google Local Services Ads for HVAC shops: how pay-per-lead works, verification, lead credits, ranking, and tracking cost per booked job.

Local Services Ads (LSA) are the ads with the "Google Verified" badge that show at the top of some Google searches, like "AC repair near me". You don't pay per click. You pay per lead: a call, message, or booking request from a customer.

This guide covers how charging works, what verification an HVAC shop has to pass, what happens with bad leads, what affects where you show up, how to judge LSA against your other lead sources, and a setup checklist. It's written for shop owners and for techs about to open a shop.

Where the facts come from. Every claim below about how LSA works comes from Google's own help pages, linked next to each section. We read them in September 2026. Google changes this product often, so check the linked page before you make a big decision. We don't quote a price per lead: Google's help pages don't give one. Lead prices vary by market and job type; check the estimator in your LSA account.

Big change in 2026: LSA is moving into Google Ads

Google is moving Local Services Ads out of their own separate dashboard and into the main Google Ads platform, as Performance Max campaigns with "pay-per-lead" goals. Google's schedule:

• August 2026: first phase starts for "select home and storefront service advertisers in the United States". Google names HVAC among the categories.
• Late 2026: expands to more advertisers, "including service-area businesses without physical storefronts".
• 2027: non-U.S. accounts and all remaining categories.

What changes, per Google:

• You manage budgets, targeting, and replies to customers inside Google Ads instead of the separate LSA dashboard.
• Manual bidding (setting a maximum cost per lead) "is no longer supported in Google Ads".
• Weekly budgets become daily: your historical average weekly budget is divided by 7.
• Pay-per-lead stays. You still pay only for valid leads.
• The Google Verified badge transfers automatically for eligible businesses.
• Your past lead history moves over. Your past campaign-level performance numbers do not, so Google says to download your reports before you migrate.

If you already run LSA, download your reports now so you keep your own history of leads and cost. Some details later in this guide (bid modes, the dashboard) describe the older LSA setup and may look different once your account moves.

Source: Google Ads Help, "Local Services Ads transition to Performance Max campaigns with pay-per-lead goals"

"Google Guaranteed" and "Google Screened" are now "Google Verified"

Older articles talk about the "Google Guaranteed" and "Google Screened" badges. Google has replaced those with a single Google Verified badge. It shows that an advertiser has "completed verification requirements". Existing advertisers got the new badge with no action needed. New advertisers earn it by passing Google's screening and verification.

The money-back guarantee tied to the old Google Guaranteed badge is being discontinued. Google says customers could still request reimbursement for services booked through LSA before December 7, 2025, if they asked within 30 days of the job being finished. So don't promise customers a "Google guarantee" in your own marketing anymore.

Source: Local Services Help, "About Google Verified badge"

What verification requires for an HVAC shop (US)

Google treats HVAC as an "urgent category", because customers often need fast repairs. That means an extra level of screening, including background checks on your service professionals.

For HVAC in the US, Google's requirements page lists:

• Background checks: a business check, an owner check, and a service professional check.
• Licenses: a state-level business license and a state-level owner license.
• Insurance: general liability and professional liability insurance. The page doesn't list a minimum coverage amount; Google says amounts must meet the requirements for your category and location, which you'll see during sign-up.

Source: Local Services Help, "Business screening and verification requirements - United States"

More detail from Google's screening overview:

• All business owners go through a criminal background check. So does every employee, independent contractor, temp, or other worker who does the core service work. Office and clerical staff don't.
• Checks are done by Google's local background check partners. "Businesses aren't charged for the background check."
• Google checks state-level licenses against official databases. You also have to confirm you hold any county and city licenses, and that your techs are properly licensed in each place you work.
• Your certificate of insurance must be active and valid for at least 14 days after you submit it, and the business name on it must match the name you advertise under.

Source: Local Services Help, "Understand the screening and verification process"

Practical tip: have your license numbers, current insurance certificate, and a list of every field tech (with contact info for their background check) ready before you start. Adding a new tech later means adding them to the roster so they're checked too.

How pay-per-lead works: what you're charged for

Google's "How leads work" page says you're charged when:

• You get a text message or email from the customer
• You answer a phone call and speak with the customer
• You get a voicemail, or the customer "uses an automated system to meaningfully engage"
• You get a booking request
• You miss a call (no voicemail), then you return it by text, email, or call and either speak with the customer or leave a voicemail

That last one matters: calling back a missed LSA call can turn it into a paid lead. That's fine, since you want those jobs, but know it's happening.

Google also lists cases where a lead won't be credited back to you, meaning you still pay:

• A valid lead came in outside your business hours
• The customer asked for advice on a project related to a service you offer
• The customer canceled a booking
• The customer was researching projects or prices for a service you offer
• The customer didn't respond when you reached back out
• You referred the customer to another provider

In other words: price-shoppers and after-hours calls are real leads in Google's eyes. Whether they turn into jobs is on your phone team. See the call booking rate playbook for how to measure and raise that.

Google also says message leads "are typically priced lower than the corresponding phone lead price". Booking leads are available in the US and Canada.

Source: Local Services Help, "How leads work"

Bad leads: credits, not disputes

Google now handles bad leads mostly on its own. Per Google:

• Leads are checked when the customer first makes contact. Leads Google decides are "invalid or low quality are not charged".
• Charged leads keep being reviewed and can get an automatic credit later if they turn out to be low quality.
• "In most cases, credits will be applied to your account balance within 30 days." The original charge still shows on your invoice.
• Your lead list shows which leads were not charged, charged, "In review", or credited.
• Google no longer gives credits for "job type not serviced" and "geo not serviced" leads.
• You can still rate a lead: open it in your account and choose "Rate this lead", then fill out the short survey.

What this means for you:

1. Set your job types and service area carefully. If you're getting calls for work you don't do or places you don't go, you won't get that money back after the fact. Fix the settings.
2. Rate bad leads anyway. It's the feedback channel Google gives you.
3. Check your credits monthly. Compare charged leads to credited leads so you know your real cost.

Source: Local Services Help, "About Automated Local Services Ads lead credits"

How ranking works

Google's "About ad rankings" page lists what affects where you show up:

• Your bid: the most you're willing to pay for a lead ("though you may end up paying less"). Google recommends the "Maximize Leads" bid mode. (Manual bidding goes away after the move to Google Ads; see above.)
• Responsiveness: "Missed calls may negatively affect your responsiveness."
• The search itself: the service the customer wants, the time of the search, their location, and other details.
• Relevance: the services you offer and your business bio.
• More ways to reach you: turning on message and/or booking leads "can increase the likelihood of receiving a lead, especially during nights and weekends."
• Profile quality: "Your rating, number of reviews, average response time, use of high-quality images, the verification checks you have completed."

Source: Local Services Help, "About ad rankings"

Reviews

"Star ratings and number of reviews affect how your business is ranked within Local Services Ads." Your reviews live in your Google Business Profile, not in the LSA account. Google says customers are more likely to leave a review when the request comes from you directly, and your account has a review link you can send them.

Source: Local Services Help, "Reviews and Ratings on Local Services Ads"

Google also recommends at least 5 reviews, and says that depending on your business type you may need 5 reviews for your ad to show at all.

Source: Local Services Help, "Improve your Local Services Ads performance"

Hours

You can run your ad all day, only during the business hours on your profile, or on custom hours you pick. Outside your scheduled hours (or if the ad is paused), Google "may" show a free version of your listing.

Source: Local Services Help, "About ad scheduling"

Put the rules together: after-hours leads are charged if they're valid, missed calls hurt your responsiveness, and message leads can help at night and on weekends. So only run your ad during hours when someone will actually answer, or turn on message leads and reply fast.

Location

Google's ranking page says the customer's location is part of the "context of a customer's search". It doesn't give a formula for distance, so we won't guess at one.

Google's other tips

From Google's "Improve your performance" page: select all the job types you actually do, set your service area, add high-quality photos, opt in to message leads (Google says your average response time may be shown in your ad), and opt in to show up when people search your business name.

Source: Local Services Help, "Improve your Local Services Ads performance"

Budget and bidding (older LSA setup)

Before the move into Google Ads, LSA offered three bid modes: Maximize leads (automated, Google's recommendation), Target cost per lead, and Max per lead (manual). "A bid is the most you'd pay for a lead." With Maximize leads, Google suggests "a minimum budget of 10 leads per week for optimal results." Remember that manual bidding is not supported once your account moves to Google Ads.

Source: Local Services Help, "How bidding works for Local Services Ads"

Track cost per booked job, not cost per lead

Cost per lead is what Google shows you. It's not what matters. A cheap lead that never books is worth nothing. Track this instead, for every channel (LSA, search ads, referrals, mailers, etc.):

• Cost per lead = channel spend (after credits) / leads
• Booking rate = booked jobs / bookable leads
• Cost per booked job = channel spend (after credits) / booked jobs
• Revenue per booked job = revenue from those jobs / booked jobs

Example with made-up round numbers (not industry averages): you spend $3,000 on LSA in a month after credits and get 60 charged leads. That's $50 per lead. You book 30 of them, so it cost $100 per booked job. If your search ads cost $40 per lead but only 1 in 4 books, that's $160 per booked job. On this math the "pricier" lead source is the cheaper one.

How to get the numbers:

1. Tag every lead with its source in your CRM or on a simple sheet. Your LSA account keeps a lead inbox with a record of your leads, and in the US you can listen to phone lead recordings there. (Local Services Help, "Manage leads and jobs")
2. Use spend after credits, not the gross charges on the invoice.
3. Compare monthly, and look at revenue per job too: a channel that brings in replacement leads may be worth more per job than one that brings in tune-ups.

Plug your numbers into the marketing ROI calculator, and see the published benchmarks in What a Lead Should Cost You.

Setup checklist

• If you already run LSA: download your performance reports before your account moves to Google Ads
• Gather state business and owner license numbers
• Get a current general liability and professional liability insurance certificate, in the exact name you'll advertise under, valid 14+ days past submission
• List every owner and field tech who needs a background check
• Confirm county/city licenses for every area you'll serve
• Get at least 5 Google reviews (ask customers directly; use your review link)
• Select only the job types you actually do, and set your service area to where you'll really go
• Set ad hours to when someone will answer the phone; turn on message leads if you can reply fast
• Add real, high-quality photos of your trucks, team, and work (with permission)
• Write a clear business bio that lists your services
• Set up lead-source tracking: tag every LSA lead in your CRM or a sheet
• Each month: check credited leads, rate bad leads, and compute cost per booked job vs your other channels
• Re-check Google's help pages before big changes; the product is changing through 2026-2027

What LSA really costs per booked job

Google explains how LSA works but not what it costs per booked job at a shop like yours. The anonymous Owner Numbers survey asks about lead cost and shows how yours compares.