Cost of Furnace Replacement and Buying a New Furnace - Guide 2023

When winter comes knocking at your door, your furnace keeps you warm and comfortable. But what happens when this essential home appliance shows wear or inefficiency? The cost of furnace replacement may be on the horizon. This guide aims to cover every detail you need to know about choosing a new furnace. We discuss the cost of furnace replacement, different furnace types, and other crucial aspects that factor into making the right decision.

The Importance of Selecting the Right Type of Furnace

One of the first decisions you'll face is the kind of furnace to install. Whether gas, electric, or propane, each has its own set of advantages and disadvantages. When comparing these options, it's essential to consider the initial investment and the long-term operational costs. To help you weigh these factors, you should read more on different furnace types.

Maintenance and Repairs

Another aspect to consider is the maintenance requirements and the availability of repair services for the type of furnace you choose. Some furnace types may need more frequent maintenance or have more expensive parts, adding to the long-term costs.

Compatibility with Existing Systems

If you already have an existing furnace you are replacing that relies on a certain type of energy, like natural gas, it might be more convenient and cost-effective to choose a furnace that uses the same energy source. This can simplify the installation process and perhaps even reduce costs if you already have the necessary infrastructure in place.

Safety Features

Modern furnaces come equipped with several safety features, including advanced sensor systems to detect carbon monoxide and other issues. Check the safety ratings and features of each type of furnace to ensure you're making a choice that prioritizes the well-being of your household.

Resale Value

Lastly, a high-efficiency, well-chosen furnace can increase your home's resale value to some degree. Prospective buyers often consider the quality and type of the HVAC system when evaluating a property.

Efficiency Ratings: AFUE and Energy Star

Furnaces come with varying degrees of efficiency, often measured in terms of their Annual Fuel Utilization Efficiency (AFUE) rating. While more efficient models usually cost more upfront, they can save you money in the long run through lower utility bills. One question is whether to opt for the highest efficiency gas furnace available or settle for a less efficient but more affordable model. A higher Annual Fuel Utilization Efficiency (AFUE) rating usually implies a more efficient furnace but at an increased upfront cost. Furnaces with Energy Star labels meet government energy-efficiency standards, which can be an additional assurance for buyers.

Size Matters: BTUs and Your Space

Another critical factor is the size of the furnace relative to your home's heating needs. Inaccurate furnace sizing can result in inefficient energy use and inadequate heating. One of the key determinants of your new furnace cost is size, often measured in British Thermal Units (BTUs). To ensure efficient heating, it's crucial to pick a furnace of the right size. This directly answers the question: how much does it cost to buy a furnace and install a new furnace suitable for your home. An undersized furnace will struggle to heat your home, while an oversized one will cycle on and off too frequently, wasting energy. Furnaces are offered in 20,000 BTU increments so you just need to be close enough to ensure the right amount of heating is supplied into your space.

Fuel Types: Gas or Propane

Both natural gas and propane have their merits. Natural gas is often cheaper and more readily available, but propane can be a viable alternative in areas without a natural gas infrastructure. For an in-depth comparison of the two, consider reading about propane vs gas.

Special Features: Do They Affect the Cost of Furnace Replacement?

Today's furnaces come equipped with a variety of special features, such as variable speed blowers, which help circulate air more efficiently throughout your home. If stronger and more balanced air flow interests you (as it should), find out how variable speed variable speed works and whether it would benefit your specific needs.

Zoned Heating, Variable-Speed Blowers, and More

When evaluating options for a new furnace, you'll likely come across several features designed to enhance your home's comfort and energy efficiency. Among these are zoned heating systems and variable-speed blowers. While these options can increase your initial expenditure, they often offer worthwhile benefits in both comfort and potential savings over time.

Zoned Heating

A zoned heating system allows you to divide your home into separate areas or "zones," each with its own thermostat. This gives you greater control over the temperature in individual rooms or sections of your house. It's especially useful in multi-level homes or houses with areas that have different heating requirements. By only heating the zones you're using, you can significantly reduce your energy consumption.

• More precise temperature control in different parts of your home.
• Potential to lower energy bills by heating only occupied areas.
• Enhanced comfort for family members with varying temperature preferences.

Considerations

• Installing a zoned system may require additional equipment and ductwork adjustments, which add to the upfront cost.

Unlike traditional blowers that operate at a fixed speed, variable-speed blowers can adjust the volume of air they move in response to your home's heating needs. This feature is often found in high-efficiency furnaces and provides several benefits:

• Improved energy efficiency by adjusting blower speed to meet real-time heating requirements. These lower operating speeds offer considerable energy savings.
• Quieter operation, as the blower can operate at lower speeds when full power isn't necessary.
• Enhanced air quality through better air filtration and more consistent circulation.

• Furnaces with variable-speed blowers tend to be more expensive upfront but will provide long-term savings through reduced energy bills.

Additional Features

Modern furnaces may also have various other features to enhance performance, such as smart thermostats for remote control and advanced filtration systems for improved air quality. While these add to the initial cost, they offer varying degrees of comfort and efficiency improvement.

Variable-Speed Fan Motors: Quiet Comfort

A furnace equipped with variable-speed fan motors can be a game-changer. These motors adjust airflow based on the needs of your home, offering a quieter and more energy-efficient experience. Learn more about what variable speed in furnaces means and how it works.

Heat Exchangers

The material of the heat exchangers, often stainless steel or aluminized steel, can influence both the price and the furnace's lifespan.

Ignition Systems

Modern furnaces feature intermittent or hot surface ignition systems that are more efficient than older pilot light systems, reducing the cost of furnace replacement in the long run.

Operational Modes

Furnaces differ in their operational modes. For those who need a basic and straightforward solution, a single-stage furnace could suffice. However, for homeowners looking for more refined and higher demand temperature control, two-stage or even modulating furnaces offer incremental adjustments that maximize both comfort and efficiency.

Single-Stage, Two-Stage, or Modulating Furnaces

The operational modes of furnaces vary. Single-stage furnaces operate at one speed, two-stage models have low and high settings, and modulating furnaces offer precise temperature control. Read What Is a Single-Stage Furnace and Who Needs It for an in-depth look.

Two-Stage Furnaces

Two stage furnaces balance efficiency and comfort by operating at two different settings: low for maintaining temperature and high for quick heating. This reduces the frequency of on-off cycles, thus saving energy and reducing wear on the furnace.

Modulating Furnaces

Modulating furnaces are known for their efficiency and precise temperature control. They adjust their output in small increments, delivering consistent heating that can result in lower utility bills and increased comfort.

Your Local Climate

Last but not least, your geographical location will also influence your choice. Different climates require varying degrees of heating power. Given this, you'll want to choose a furnace by climate to ensure optimal performance throughout the year.

Cost of Furnace Replacement and New Furnace Cost

The cost of furnace replacement can range from as low as $3500 to over $10,000. This price fluctuation is influenced by several elements like furnace type, efficiency ratings, and installation complexity. So, the question is, how much does a new furnace cost?

Types of Furnaces and Their Costs

Think of your furnace as the heart of your home. It keeps you and your family warm and cozy in the cold months. So, choosing the right type is crucial. There are four main types: Gas, Electric, Oil, and Hybrid. Let's get into the nitty-gritty of each.

Gas Furnace Cost: Natural Gas and Propane

Natural gas furnaces are common and can quickly heat your home. The gas furnace replacement cost generally includes the furnace unit and installation, potentially increasing if a new gas line needs to be set up. Propane furnaces are similar but require a separate on-site tank, adding to the initial cost. Check here for gas furnace prices.

Electric Furnaces: Efficient but Potentially Expensive

Electric furnaces are an attractive option for their simplicity and lower upfront costs, but it's important to consider the higher operating costs, especially if you live in an area with more severe winters. If your primary concern is the environment and you have access to renewable electricity, an electric furnace can be a good choice. Regular maintenance checks can help ensure your unit runs efficiently for years to come.

Check here for electric furnace prices to get a better sense of the cost you can expect.

Oil Furnaces: A Less Common Choice

While not as common as gas or electric furnaces, oil furnaces still exist, especially in rural areas where natural gas lines may not reach. The primary downside is the operating cost; you'll need to maintain a full oil tank, which can get pricey. They emit very toxic fumes into the atmosphere as well, the main reason they have fallen out of favor worldwide.

Hybrid Heat Pumps: Best of Both Worlds

Hybrid heat pumps combine the features of gas heat and an electric heat pump, adapting to different weather conditions for optimized performance. While they can be a bit more expensive to install, they often provide long-term savings on energy bills especially in high demand northern climates.

Comparing Furnace Types in Comfort, Savings, Noise, & Cost

When it comes to selecting a furnace, multiple factors play a role, including comfort, long-term savings, noise levels, and upfront costs. Different types of furnaces offer various advantages and disadvantages in these aspects. It's essential to consider all these elements to make an informed decision that best suits your needs. For a detailed analysis,read more here.

Comfort Levels

• Single-Stage Furnaces: These furnaces have only one setting—high. While effective for rapid heating, they may not distribute heat evenly throughout your home, leading to hot and cold spots.
• Two-Stage Furnaces: These offer two settings: high and low. This allows for uniform heat distribution and enhanced comfort.
• Modulating Furnaces: With the ability to adjust heating output in small increments, these furnaces offer the most consistent temperature control, resulting in the highest comfort and energy efficiency levels.

Long-term Savings

• Gas Furnaces: Over time, gas furnaces can be more economical due to the lower cost of natural gas.
• Electric Furnaces: These units are less expensive upfront but will cost you more in the long run, especially if you live in a region where electricity is costly or you experience a high heating demand.
• High-Efficiency Furnaces: Higher AFUE ratings mean greater fuel efficiency, potentially saving you money over time despite higher initial costs.

Noise Levels

• Older Models: Traditional furnaces can be quite noisy during operation, a factor that may be disturbing, especially during the night.
• Newer, High-Efficiency Models: These often include features like variable-speed blowers that reduce operational noise, offering a quieter home environment.
• Electric Furnaces: Generally, these are quieter than gas furnaces since they don't rely on the combustion of fuel.

Upfront Costs

• Gas Furnaces: Typically range from $2,500 to $4,000, excluding installation costs.>
• Electric Furnaces: Usually cheaper to purchase and install, ranging from $1,000 to $2,500.
• High-Efficiency Furnaces: These are the most expensive upfront, potentially costing over $4,000. However, tax credits and long-term savings may offset this cost.

Additional Features to Consider

• Zoning Systems: Allow you to control the temperature in different areas of your home for optimized comfort and efficiency.
• Variable-Speed Blowers: These can be a feature in higher-end models, improving both comfort and efficiency.

Choosing a furnace involves more than just looking at the sticker price. The type of furnace that best meets your needs will depend on various factors, including the size of your home, your climate, and your long-term living plans.

Check the standard warranty and consider purchasing extended warranties for high-end furnaces. These can protect your investment for years to come.

Knowing how to buy a furnace that fits your home’s requirements can save you stress and money down the line. Remember, whether you're pondering how much it costs to buy a new furnace or just a furnace replacement, our experts are standing by to help.