Should You Buy the Highest Efficiency Gas Furnace?
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By Michael Haines
- Oct 10, 2023
Should You Buy the Highest Efficiency Gas Furnace?

Deciding whether to invest in the highest efficiency gas furnace can be a tricky decision. While high-efficiency furnaces have their benefits, they are not always the best fit for everyone. In this guide, we'll explore the different efficiency levels available in the market to help you make an informed decision that maximizes the value of your investment.
Common Furnace Efficiency Options
When evaluating the cost of buying a new furnace, you'll come across a key term: Annual Fuel Utilization Efficiency, or AFUE. This is a measurement that signifies how efficiently a furnace converts fuel into heat. Federal regulations require a minimum AFUE of 78%, but you'll find models on the market that boast an AFUE of up to 98%. It's worth noting that older furnaces might have a much lower AFUE. A furnace that's 20 years old could have an efficiency rate as low as 65%.
Understanding AFUE Ratings
A furnace with an 80% AFUE converts 80% of the fuel it consumes into heat, while the remaining 20% escapes through the exhaust flue. In numerical terms, a 100,000 BTU furnace with an AFUE of 80% will have a net output of 80,000 BTU of heat.
On the other end of the spectrum, a highest efficiency gas furnace with a 98% AFUE will produce 98,000 BTU of heat from the same 100,000 BTU, with only 2% lost through the exhaust flue.
Why High Efficiency?
When you're shopping for a new furnace, you'll come across three primary types of furnaces: single-stage, 2-stage, and modulating. Understanding the characteristics and advantages, along with the right furnace sizing, can help you tailor your choice to your specific needs. Single-stage furnaces are the most straightforward and generally the least expensive upfront when buying a new replacement furnace. These units have only one setting—high. When turned on, they operate at full capacity until the desired temperature is reached. While they're good for heating up a space quickly, they may result in a less even distribution of heat and tend to be less efficient overall. A 2-stage, or dual-stage, furnace offers more flexibility than a single-stage model. It can operate at both a high and a low setting, allowing for more consistent temperature control and less cycling on and off. This is especially beneficial in milder weather when full capacity isn't necessary but some heating is still required. Modulating furnaces offer the highest level of control over your home's temperature. These furnaces can adjust the heat output and fan speed in small increments, often as fine as 1% increments, to maintain a consistent temperature. They are the most expensive upfront but can result in significant long-term energy savings. Selecting the appropriate furnace type hinges on several factors, such as your geographic location, home size and insulation quality, and budget. A modulating furnace might be the best option for those looking to minimize long-term costs. However, a single-stage furnace can suffice if you're on a tight budget and need a solution quickly. The answer largely depends on your circumstances. If you want to minimize long-term operational costs and prioritize environmental responsibility, a high-efficiency furnace could be the right choice. However, the initial investment is higher, so you must consider whether the future savings justify the upfront cost.
We recommend considering a manual J load calculation for the most accurate sizing and efficiency recommendation. It's a $100 investment that could save you much more in the long run.
While the highest efficiency gas furnace offers impressive benefits, it may not be the ideal choice for everyone. To determine your home heating needs, consult professionals to make the most informed decision.Additional Considerations - Understanding Furnace Types
Single-Stage Furnaces
Cons:
2-Stage Furnaces
Cons:
Modulating Furnaces
Choosing the Right Furnace Type
So, Should I Buy the Highest Efficiency Gas Furnace?