How Much Does Furnace Replacement Cost in 2024?

The initial investment and continuing energy costs for heating your house are heavily influenced by the type of furnace you choose. There are primarily three categories of furnaces:

Electric Furnace:

Electric furnaces are more cost-effective than gas and propane ones, both in terms of average cost of purchasing and installation. They typically have reduced initial installation costs due to their simplified design and low furnace cost. However, electric furnaces could be more costly to run than natural gas furnaces, depending on power rates in your area.

Gas Furnace:

A natural Gas furnace is a very effective and efficient heating option, making it a popular choice in areas with harsh winters. Adding additional gas lines or modifying existing ones could make the installation more complicated and expensive. Natural gas often has lower operating expenses than electricity, which can help lower operational costs in the long run, even though it may have a higher furnace installation cost.

Propane Furnaces:

Furnaces that run on propane are just as expensive to install as gas furnaces, making them a good alternative for places without access to natural gas. On the other hand, operating expenses may rise because of the greater final cost of a propane furnace unit compared to natural gas.

Note: There's an additional type of furnace - oil furnaces but they're not permitted to install in most Canadian cities.

The Annual Fuel Utilization Efficiency (AFUE) is a metric that evaluates the efficiency with which a furnace produces heat from its fuel over the course of a year.

• Standard-Efficiency Furnaces: Usually provide an AFUE rating between 80% and 89%. They may be less expensive up front, but their inefficient fuel usage will drive up their energy costs in the long run.

• High-Efficiency Furnaces: Furnaces denoted as "high efficiency" have an AFUE rating of 90% or above. Although they are more expensive initially, they save money on energy costs in the long term because of the energy efficiency they provide.

How much it will cost to replace a furnace depends heavily on how complicated the installation is. Furnace prices vary depending on the installation complexity and its factors such as:

• Existing Ductwork: The installation of new, more expensive ducts may be necessary if your home's ducting is old or nonexistent.

• Venting Requirements: If you have an older model gas furnace in your house, you may need to make some adjustments to the venting system in order to accommodate a high-efficiency furnace.

• Space Constraints: Difficult or poorly planned locations might make installation more difficult and even cost more in terms of labor.

The efficiency of your furnace's functioning greatly depends on your choice of size furnace used, which is measured in British Thermal Units (BTUs). Overworking an undersized furnace due to insufficient heating or underworking it due to excessive cycling on and off reduces efficiency and shortens the lifespan of an oversized unit. Complete calculations taking into account the home's square footage, ceiling height, window quality, insulation levels, and temperature zone are required for accurate sizing.

The upfront cost and the ongoing furnace maintenance costs might be affected by the brand you choose:

• Reputable Brands: Generally speaking, reputable brands charge more upfront but provide more dependable, energy-efficient furnaces with greater warranties.

• Warranty Coverage: You can save money in the long term by purchasing a more comprehensive warranty that covers prospective furnace repairs and their costs. Make sure you know how long the warranty lasts and what it covers.

The overall expense of replacing your furnace might be greatly impacted by the procedure of removing and disposing of your old unit. The total cost could rise if the old heating system itself is bulky or contains dangerous substances like asbestos, necessitating the need for professional removal services. To make matters more complicated and expensive, particular disposal requirements may be imposed by certain local authorities.

How big and what kind of furnace you require is dependent on your local climate. Furnaces with more BTUs and greater efficiency are necessary for colder climates in order to keep warm and control heating expenses.

The time of year, the installer's level of experience, and the location all play a role in the final price tag for installing a furnace. Since heating services are in high demand throughout the winter months, costs might go up.

Furnaces nowadays are loaded with technologies that can make your life more comfortable and energy efficient, but they can also drive up the price. Smart thermostats that learn your heating preferences and alter the airflow to keep temperatures consistent are one example of how you can benefit from an efficient furnace.

Before you can install a new furnace, you need to find out if any permits are required in your area. The installation cost of a new one can go up due to the purchase of these permits and any necessary inspections.