new furnace

When it comes to winter heating, homeowners with a 2000-square-foot space need to be sure they choose the right furnace. Several choices must be made when installing a new furnace, ranging from determining the right kind of furnace for the space you have to gaining knowledge of the costs associated with the installation or furnace replacement.

In this article, we’re giving you an overview of the different types of furnaces, their costs, and how to choose the best heating system for your 2000-square-foot home.

Factors Influencing Furnace Costs

Understanding furnace replacement costs is crucial for homeowners when selecting a new furnace for a 2000-square-foot home, as several key factors impact the overall cost. This knowledge can help homeowners make informed decisions that balance initial investment with long-term savings and efficiency.

The choice between gas, electric, propane, or oil furnaces significantly affects the purchase and installation costs. A natural gas furnace is generally preferred for its efficiency and lower operating costs, whereas electric furnaces, while cheaper to install, can lead to higher utility bills. Considering the conversion process from an oil furnace to a gas furnace involves evaluating the cost, checking the availability of the new energy source, understanding potential tax credits, and the additional work required, including ductwork and space preparation for the new furnace.

The Annual Fuel Utilization Efficiency (AFUE) rating shows the percentage of fuel that is transformed into usable heat, which is a measure of a furnace's efficiency. A higher AFUE rating means more efficient fuel use and reduced monthly energy expenditures. While high-efficiency furnaces cost more upfront — often several thousand dollars more — they can dramatically cut energy bills over time, especially in colder locations where heating demands are greater.

It is highly important to have the furnace's proper size, which is measured in British Thermal Units (BTU). Inefficient operation and increased wear can shorten the lifespan of a furnace if it is either too big or too small. In addition to improving comfort, a furnace that is appropriately designed for a 2000-square-foot home will run more efficiently, leading to lower energy bills.

Furnace prices of premium companies tend to be more expensive up front, but they're worth it in the long run due to their superior quality and longevity. Still, you can save money in the long run by purchasing a furnace from a trusted brand because they tend to last longer and require less maintenance.

The installation price could change drastically depending on the house's current setup. Factors such as the requirement to change ducting, replace electrical systems, or construct additional vents might boost labor and materials expenses. Additionally, the furnace replacement cost will be different from just the installation. Installation costs may be greater for homes that have limited access to the furnace's location or that need significant safety upgrades to meet local requirements.

The harsher the winter, the more heating power is needed. Heaters with greater British thermal unit (BTU) capabilities may be necessary and costly for homes located in colder climates. A less-priced, lower-capacity unit may be appropriate in milder climes due to the reduced demand for heating electricity.

Installing energy-efficient appliances may qualify you for incentives from several utility companies and municipal governments. The larger cost of a new furnace's initial investment in high-efficiency furnaces can be mitigated by these incentives, which can have an impact on the final cost.

The cost of labor might change depending on where you are and who you hire. The cost of living is likely to be higher in urban locations depending on the local HVAC contractor you choose, leading to higher labor rates, whereas fewer services and longer travel times for technicians might drive up expenses in rural places.

Modern furnaces have a plethora of extra features, such as programmable thermostats, variable-speed fans, and the ability to create separate zones for different heating needs. These features make the furnace more efficient and comfortable, but they also increase the cost of the system initially.

Types of Furnaces and Their Costs

There are several furnace alternatives available to homeowners when shopping for a 2000-square-foot home, and each one has its own set of pros, cons, expenses, and factors to think about.

Gas furnaces are the most often utilized heating devices in locations where natural gas is easily available. They are preferred for their efficiency and the lower cost of natural gas compared to electricity and oil. Prices range from $2,500 to $4,500 (not including installation) for standard models, which normally have an Annual Fuel Utilization Efficiency (AFUE) of 80% to 89%.

When you include the cost of installation, high-efficiency versions can reach an AFUE of up to 98% and cost between $4,000 and $10,000. Since the higher initial investment can be more than compensated for by reduced energy expenses in the long run, these furnaces are perfect for heavily populated cold climates.

In places where natural gas pipelines are not readily available, electric furnaces are a viable alternative. Although they are less expensive and easier to install (usually costing between $2,500 and $6,000 installed), they normally lead to higher monthly energy bills because of the cost of power.

Regardless, the electricity utilized by electric furnaces is transformed immediately into heat, making them 100% efficient at the moment of usage. Because of this, they are a green option in areas where power comes from sustainable sources.

Furnaces that run on propane are quite similar to those that use natural gas, with the exception that the propane is kept in a tank on the premises. This is a common choice for remote places that don’t have access to natural gas. While gas furnace installations can cost anywhere from $3,000 to $6,000, the higher cost of propane compared to natural gas impacts operations expenses in the long run.

A dual-fuel system is an effective heating option for households in areas that experience extreme temperature swings. For milder weather, these systems use a heat pump; for really cold weather, they use a gas furnace, and they automatically switch between the two to maximize efficiency. These systems use the most cost-effective heating method available at any given temperature, which results in substantial savings in energy bills despite their higher initial cost.

A high-efficiency furnace is the way to go if you want to save money in the long run, regardless of the fuel you use. Although these furnaces are more expensive initially, they can end up saving homes a ton of money on heating costs. Variable-speed blowers and two-stage or modulating burners are features of high-efficiency furnaces that allow for more exact adjustment of the heat output according to the needs of the home. This enhances comfort and energy efficiency.

Which Furnace is Perfect for Your 2000 Square Foot Home?

Building code efficiency standards in Canada should be carefully considered while shopping for a furnace to heat a 2000-square-foot home. Furnaces in Canada are required to have an AFUE (Annual Fuel Utilization Efficiency) of 96.5 percent or above. By reducing waste and increasing efficiency, this high-efficiency standard guarantees that your home will heat with the majority of the energy consumed.

For most Canadian houses, a high-efficiency gas furnace is the ideal choice due to the efficiency standards. Some models from Lennox, Carrier, and Trane reach as high as 98.7 percent annual fuel utilization efficiency (AFUE), which is much higher than the minimum efficiency requirements. One of the most efficient models is the Lennox SLP98V Variable-Capacity Gas Furnace, which provides accurate heating to keep interior temperatures stable and comfortable all year round.

Gas furnaces with an appropriate BTU output range can usually meet the heating requirement of a 2000-square-foot home. Furnaces with BTU ratings of 60,000 to 80,000 would be suitable for this size. This capacity guarantees that the house is efficiently heated without putting too much strain on the furnace, which in turn improves its lifetime and efficiency.

Breakdown of Installation Costs for a New Furnace in a 2000 Square Foot Home

Natural Gas Furnaces: $2,500 to $5,000

Electric Furnace: $3,000 to $6,000

High-Efficiency Models: Additional $1,000 to $3,000 on top of the base cost for standard models.

Minor Adjustments and Sealing: $200 to $800

Major Ductwork Replacement: $1,000 to $5,000 depending on the extent of work needed.

Upgrading Vent Pipes: $500 to $1,500, required for certain high-efficiency and gas furnace installations.

Permits and Inspections: $100 to $500, varying by location.

Extra Charges added to the furnace cost for Difficult Access: $200 to $600, depending on the complexity and time required.

Electrical Upgrades: $250 to $1,000 for enhancing circuit capacity or installing new circuits.

New Gas Lines: $500 to $1,500, necessary when switching from a different fuel type or installing a furnace in a new location.

Standard Installation Labor: $500 to $2,000, influenced by regional rates and the contractor’s experience level.

Additional Labor for Complex Installations: Up to $500 or more depending on the specifics of the job.

Programmable Thermostat: $150 to $400

Air Purifiers and Upgraded Filters: $400 to $1,200

Combining these elements, here’s an estimated total cost range for installing a new furnace in a 2000-square-foot home:

  • Base Cost for Furnace + Standard Installation Labor: $3,000 to $9,000

  • Ductwork Adjustments: $200 to $5,000

  • Ventilation and Compliance Costs: $600 to $2,000

  • Electrical and Gas Line Upgrades: $750 to $2,500

  • Optional Components (Thermostat, Air Purifiers): $550 to $1,600

  • Total Estimated Cost: $5,100 to $20,100

The vast range can be attributed to various factors, such as the variety of furnace options - including oil and gas furnaces, the state of the home's infrastructure, and variations in labor prices among regions. Simpler installations requiring fewer changes and the use of standard models will result in reduced prices, but high-efficiency models and extra components can drive costs upwards.


Choosing and installing the correct furnace in a 2,000-square-foot home is a substantial expenditure that can affect energy expenses and comfort for many years. Homeowners can maximize heating efficiency and cost-effectiveness by making informed decisions based on the type of furnace, installation requirements, and ongoing expenditures.

If you value proper installation of your furnace that adheres to all specifications, Comfort Union is the way to go. After evaluating your property, our HVAC contractors can advise you on the finest furnace options and provide you with an accurate estimate of the cost to have it installed, taking into account all relevant criteria.

Reach out to us for a custom furnace installation cost quote for your 2000-square-foot home! Additionally, we can also help you with furnace repair, furnace maintenance, and furnace replacement for your home.

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