new furnace

When it comes to heating your house, choosing the proper furnace is essential for both comfort and cost-efficiency. This is especially true if you live in a room that is 1500 square feet in size. In this article, we’re talking about everything you need to know before you buy a furnace for your home, from the different kinds and how much they cost to install in Canada.

Factors Affecting Furnace Costs for High-Efficiency Models in Canada

A new furnace’s final price tag might vary widely depending on several criteria, although it will be more expensive for models with an annual fuel utilization efficiency (AFUE) of 96.5% or higher. However, these high-efficiency furnaces may often have a greater initial cost, but they provide significant savings on energy bills in the long run. Homeowners in Canada who want to make a smart investment in heating systems must understand the several elements that affect these prices:-

An important factor in the cost of a furnace is its efficiency rating. Modern technology allows high-efficiency furnaces to transform virtually all of the fuel's energy into useful heat; this drastically cuts down on waste and, in turn, heating expenses (AFUE rating of 96.5% or more).

Modulating gas valves and variable-speed blower motors are common components of these furnaces and these characteristics allow for precise regulation of heat output and guarantee optimum efficiency. In addition to assisting with more stable interior temperatures, the technology also lessens the frequency of on-and-off cycling, which makes it more durable.

Furnace types might also have an impact on the final cost. You can choose a natural gas, electric, propane, or oil furnace in Canada (although oil furnaces aren't allowed in most Canadian regions). Natural gas is more common than propane and electricity since it is cheaper and more readily available. The high-tech design of high-efficiency natural gas furnaces makes them more costly up front, but they end up saving money on energy bills because of Canada's historically low energy rates.

A major factor influencing the total cost of furnace installation is the complexity of the process. When getting a furnace replacement and changing an older, less efficient furnace with a newer, more energy-efficient one, the furnace installation process could be more complicated. To accommodate the advanced technology of high-efficiency oil and gas furnaces, it may be necessary to modify existing ductwork, venting systems, and electrical installations.

The requirement of specialized venting materials to avoid condensation, which is a common issue with these furnaces due to their lower exhaust temperatures, can drive up the furnace installation cost. Additionally, a furnace replacement cost will always vary from a regular furnace installation because of the extra work that is put in for replacing, making up for higher labor costs.

The effectiveness of a high-efficiency furnace is partially dependent on the local climate and home insulation quality. A high-efficiency furnace's operational expenses and, maybe, its sizing are affected by the fact that it has to work harder to keep an indoor environment warm in colder parts of Canada.

A more efficient furnace can be used in a house with good insulation since the heat is retained better. Improving insulation or sealing leaks may be necessary for homeowners, which can increase expenditures initially but improve energy efficiency in the long run.

For the furnace to work efficiently, it must be sized correctly. Oversized furnaces are less efficient and wear out faster since they cycle on and off more often. On the flip side, even on the coldest days, a home with an undersized furnace could not be warm enough.

The capacity, which is measured in British Thermal Units (BTUs), should correspond to the heating requirements of the house, which are determined by a variety of factors such the square footage of the house, the height of the ceiling, the quality of the windows, and even the number of people living in the house.

In Canada, various rebates and incentives are available for the installation of high-efficiency furnaces. These programs are designed to encourage homeowners to upgrade to more energy-efficient systems. Federal and provincial governments, as well as local utility companies, often offer significant rebates for furnaces that meet certain energy efficiency criteria. Taking advantage of these incentives can offset the higher upfront costs associated with high-efficiency models.

Since several brands provide varying features, efficiency, and reputations for longevity, the choice of brand can impact the cost. While more well-known brands may be more expensive, consumers often view them as more reliable and appreciate the comprehensive warranty coverage they give.

The cost of repairing or replacing advanced components can be substantial, making a longer warranty especially important for high-efficiency furnaces.

The cost of a furnace is also impacted by regulatory standards. Certain installation restrictions may be imposed by Canadian legislation, particularly for high-efficiency units, to guarantee compliance with safety and performance criteria. The final installation cost can be affected by the need for additional work or components to comply with certain rules.

Types of Furnaces and Costs for a 1500 Square Foot Home

A homeowner with a 1500-square-foot home can choose from several different furnace types such as natural gas, electric, or oil furnaces when making their heating system selection. Personal demands, regional climate, and budgetary considerations all play a role in determining which type is best, as each has its own set of pros and downsides. Let’s take a closer look at the most popular furnace options and the elements that affect their prices.

1. Natural Gas Furnace Cost

In places where natural gas is easily accessible, natural gas furnaces are the preferred method of home heating. They are well-known for the reliable heat they provide even in the coldest of winters

Cost Factors

Size (in BTUs) and efficiency (in AFUE ratings) are the two primary factors that determine the natural gas furnace cost. The costs of having them installed usually fall between $3,800 and $10,000.

Models with a higher efficiency (AFUE of 90% or above) have a higher initial cost but lower ongoing energy costs. When compared to regular units, the price for high-efficiency devices can go up by 50% to 100%.

The intricacy of the installation, as well as the availability of preexisting ductwork and gas connections, can have a substantial impact on the final installation cost.

Gas furnaces are more cost-effective to run because natural gas is typically less expensive than electricity. Because gas furnaces need to be inspected once a year to make sure they are safe and efficient, you should also think about the expense of repairs and maintenance.

2. Electric Furnace

For areas without access to natural gas or those with warmer winters, electric furnaces provide an alternate heating option. Their ease of use, security, and reduced upfront expenses make them well-known and popular options.

Cost Factors

Installation costs for electric furnaces usually range from $2,000 to $7,000. Their less complicated installation requirements make them less expensive to buy and set up compared to gas furnaces.

Due to the direct conversion of all electrical energy into heat, electric furnaces sometimes have AFUE rates close to 100%. These efficiency advantages may be negated in operational expenses by the greater cost of electricity compared to gas.

Installation of electric furnaces is simplified and cost-effective because they do not require gas lines or exhaust flue systems. Nevertheless, to manage the increased electrical demand, it may be necessary to modify the home’s electrical system.

When thinking about electric furnaces, the main factor is the cost of electricity. Operating costs for electricity can be substantially greater than those for natural gas in areas with high rates. Because there are fewer moving parts, they require less maintenance and are cheaper to run than gas furnaces.

3. Propane Furnaces

For houses without access to natural gas, propane furnaces can be a good alternative, other than electric furnaces. They work similarly to a natural gas furnace, except they need a propane tank to store the fuel.

Cost Factors

Installation for a propane furnace, like that of a natural gas furnace, can cost anywhere from $3,000 to $6,000. The installation and maintenance of a propane tank, however, incur extra expenses.

There is a wide range of efficiency levels for propane furnaces, just as there is for natural gas furnaces. Although high-efficiency versions are more initially, they end up saving money in the long run.

Prices for installing a propane tank can vary from $1,500 to $4,700, with the difference being based on whether the tank is placed above or underground. This can add a significant amount to the original cost.

Depending on local rates, propane could be cheaper than power, but it’s usually more expensive than natural gas. The propane tank must be filled on a regular basis, which adds another logistical and planning problem.


Installation of a new furnace can cost anywhere from $2,500 to $4,670 for a home with 1,500 square feet of living space, with exact costs depending on factors including furnace brand, efficiency, and the difficulty of the installation. Your investment will be more valuable in the long run if you choose a high-efficiency model and take advantage of rebates. If you want a precise estimate that is customized to your home and requirements, it is essential to talk with a reliable HVAC provider, such as Comfort Union.

At Comfort Union, we pride ourselves on being HVAC experts, offering top-tier installation, repair, replacement, and maintenance services. If you’re looking for reliable and professional assistance for your home’s HVAC system – be it furnace installation or furnace repairs, air conditioner installation or maintenance of your air conditioners, just give us a call at Comfort Union.

We’re here to ensure your home stays comfortable year-round.

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