How Much Does A High-Efficiency Furnace Cost? Need To Know

In this blog post, we will know the insights of the cost of high-efficiency furnaces in detail.

How Much Does A High-Efficiency Furnace Cost?

The furnace with greater efficiency usually costs between $1500 – $9500 depending on its type, brand and capacity.

How Much Does A High-Efficiency Furnace Cost

Types of High-Efficiency Furnaces

Each furnace type has its unique features, advantages and drawbacks, and suitability for your area and home size. 

Gas Furnaces

Gas furnaces are an efficient option for homeowners looking to upgrade their heating system.

Gas furnaces burn natural gas, propane, or oil to produce heat. They work best in colder regions and are reliable and low-maintenance.

EIA stats show more than half of US homes heated with natural gas use a furnace.

Here’s a summary of gas furnaces:

Efficiency Rating RangeAnnual Fuel Utilization Efficiency (AFUE) 89% – 98%Highest AFUE in the market
Size/Capacity Range40,000-120,000 BTUs (British Thermal Units) per hourHeats small-large homes quickly
Noise Level60 decibels during normal operationsLouder/vibrate when turning on/off

Oil Furnaces

Oil furnaces are worth considering for your new investment. They are more cost-effective in the long run due to their higher efficiency ratings than traditional gas furnaces.

The speciality of these oil furnaces is their capability of rapidly and effectively heating spacious areas. Plus, they require reduced maintenance, owing to their robust build.

Electric Furnaces

Electric furnaces rely on electricity to work, making them a great choice for many households. They are renowned for their efficiency and dependability. 

Let’s have a look at the different types of electric furnaces available in the market.

TypeEfficiency RatingAverage LifespanMaintenance Cost
Standard95-100%20-30 yearsLow
Single-Stage92-94%15-25 yearsMedium
Dual-Stage80-85%15-20 yearsHigh

Cost of High-Efficiency Furnace

To find the best high-efficiency furnace with optimal savings, you should understand the three main sub-sections. 

Average Cost of High-Efficiency Furnace

High-efficiency furnaces are a big hit nowadays. Installation costs and house modifications must be factored in when deciding the cost.

Here’s an average cost table:

Home TypeAverage Cost
Single-Family House$3,500 – $7,500
Townhouse$2,500 – $5,000
Apartment/Condo$1,500 – $3,000

Factors Affecting High-Efficiency Furnace Cost

Cost for high-efficiency furnaces vary, depending on various factors. 

This table gives a breakdown of the factors and their impact on price:

FactorsCost Impact
Energy Efficiency$2,200 – $7,000

Potential Energy Savings

Upgrading to a high-efficiency furnace can bring significant energy savings. The initial cost may seem steep, but the long-term advantages exceed the price tag. 

These furnaces are designed to use less energy to heat your home, which leads to lower bills and a smaller carbon footprint.

Plus, high-efficiency furnaces offer other benefits. They run quietly and require less maintenance, so no more hassle for homeowners.

Installation of High-Efficiency Furnace

The costs for professional installation vary, but it is arguably the best choice to guarantee proper installation. 

DIY installation is an option, but conducts uncertainty and risk. There are specific permits and building codes that must be addressed before installation begins.

Professional Installation Cost

Installation TypeAverage Cost
New Gas Line Connection$500 – $1,000
Ductwork Modification / Reinforcement$1,000 – $3,000
Furnace Unit Installation and Labor$2,500 – $5,000
Total Professional Installation Cost Estimate:$4,000 – $9,000

DIY Installation

Installing a high-efficiency furnace can save you a lot of money. 

Here’s a 6-step guide to DIY installation.

  1. Turn off Gas and Power: Turn off gas supply and electrical power to your old furnace.
  2. Remove Old Furnace: Detach vent pipes, heating ducts, and gas line. Then take out the unit.
  3. Position New Furnace: Place the new furnace, allowing enough space from walls and objects. Reattach the vent pipes.
  4. Connect Heating Ducts: Secure the heating ducts with screws or sealant.
  5. Reconnect Gas Line, Air Filter and Power Supply: Reattach all wires and hoses including gas supply line, power supply cable, and air filter.
  6. Safety First: Make sure to use proper sealant before running the new furnace.

Required Permits and Building Codes

Before installing a high-efficiency furnace, it’s important to get the right permits and stick to building codes.

ENERGY STAR® says replacing an old heating system with a high-efficiency model can save you up to 20% in energy costs.  

Top Brands Of High-Efficiency Furnaces

High-efficiency furnaces are essential for a warm and cozy winter. 

Here are the top brands that dominate the market. Quality, reliability, and customer reviews have been taken into consideration.

Lennox furnaces

Lennox furnaces come with an AFUE rating of up to 98.7%. They are energy-efficient and offer commendable customer service.

Trane furnaces 

Trane furnaces are popular for their long-term durability and reliability. Their electric and oil-fired models are great for noise reduction and energy efficiency.


CARRIER has over a hundred years of experience in heating technology. They offer precise temperature control and superior indoor air quality with modulating gas units. These brands also recycle old furnace parts sustainably.

Premium Furnaces vs Standard Efficiency Furnace Models

Premium furnaces provide the highest performance compared to standard efficiency models

Premium furnaces have higher efficiency ratings and gas valves that fine-tune heat output. Plus, they come with advanced filtration and humidifiers for improved air quality.

The extra cost of a premium furnace can save you money in the long run. So, upgrade your furnace today and enjoy the benefits.

Here’s how they compare:

Premium FurnaceStandard Efficiency Model
90-98% efficiency80-82% efficiency
Variable speed blowersSingle speed
Multi-stage gas valvesSingle stage
Built-in humidifierNo humidifier
Advanced air filtrationBasic filtration

Brand Comparison Of High-Efficiency Furnaces

High-efficiency furnaces can be a great investment, but thorough research is essential. 

To help you out, we’ve made a comparison table of respected brands. 

BrandThermal PerformanceSizeNoise LevelWarranty LengthOther Features
Brand 1ExcellentCompactLow1 YearSmart Home Compatible
Brand 2GoodMediumModerate5 YearsSelf-Diagnostic
Brand 3AverageLargeHigh10 YearsAdjustable Heat Output

Additional Costs of High-Efficiency Furnace Installation

To determine the total cost of installing a high efficiency furnace, additional costs must be considered.


Essential factors to distribute air efficiently?

  • Proper duct sizing and placement.
  • Avoid sharp turns in bends, to reduce restricted airflow.
  • Locate ducts away from sunlight and other heat sources for longevity.

Cost Range of the furnace

Cost range for new installations $1,500 – $5,000
Repair cost$200 – $1,500
Cleaning & sealing existing ducts $300 – $1,000

Removal and Disposal of Old Furnace

When installing a high-efficiency furnace, you must factor in the cost of removing and disposing of the old one. 

This involves some complexities that could affect the fees and timeline.

To remove and dispose of an old furnace:

  1. Switch off its power supply.
  2. Disconnect any electric or gas lines.
  3. Take out all the ductwork connected to it.
  4. Unscrew or unbolt anything holding the furnace in place.
  5. Transport and dispose of it following local hazardous materials disposal regulations.
  6. Clear up any leftover debris.

Gas Line and Conversion Kit

New gas line installation and conversion kit purchases can make a significant dent in your wallet. 

Costs range from $300 to $800 for professional HVAC services, and $100 to $200 for conversion kits.

For maximum efficiency, get expert advice and discuss all details with your HVAC contractor. 

Heating bills can be reduced with a high-efficiency furnace, but maintenance and repairs come at a high cost.

Maintenance and Repairs

To keep your high-efficiency furnace running smoothly, you need to take care of it properly. 

You can do this by incorporating some simple maintenance tips for high-efficiency furnaces into your routine. 

Maintenance Tips for High-Efficiency Furnace

Maintaining a high-efficiency furnace is key to keeping it running smoothly. Do regular check-ups to extend the life and lower energy costs. 

Here’s a list of four tips to maintain your high-efficiency furnace:

  • Replace air filters every three months, or sooner if needed. Dirty filters block airflow, making your furnace work harder and using more energy.
  • Clean the furnace blower motor and blades once a year for efficient performance.
  • Inspect your thermostat often and replace batteries when necessary.
  • Check vents often for any blockage that causes inefficient heating or cooling.

Common Problems and Repairs

When it comes to keeping your equipment in good condition, it’s important to know the common problems and how to fix them. 

Here are some examples:

OverheatingClean fan/vents. Replace thermal paste.
Slow performanceRemove malware/unneeded files. Upgrade RAM/HDD.
Power issuesCheck the power supply. Replace damaged parts.
Network connectivityCheck cables/router settings. Update drivers.

Warranty and Extended Service Plans

Third-party service providers offer extended warranties. These offer more flexible terms than original warranties. 

You can choose between a range of premiums and deductibles. Buying plans at the point of sale is popular, especially in stores like Best Buy.

These plans may require OEM parts or high-grade replacements. Extended service plans are cost-effective options compared to repair costs outside a plan agreement. 

Secure long-term protection by purchasing extended service contracts while buying the product.

Energy Efficiency and Performance

To ensure that your new furnace installation has high energy efficiency and optimal performance, you need to understand the importance of key factors such as the AFUE rating, variable speed blowers, and short cycling prevention. 

AFUE Rating

Electricity and heating bills can be costly. However, an energy-efficient system can save money long-term. 

AFUE stands for Annual Fuel Utilization Efficiency. It measures how effective a furnace’s fuel usage is.

Older furnaces have lower AFUE ratings than newer models. Upgrading to a higher-rated furnace means lower energy bills and greater fuel efficiency.

Professional maintenance and check-ups can keep efficiency up. This will cut costs and reduce carbon emissions, making it a great environment-friendly choice.

Choose an energy-efficient system with a high AFUE rating. Make the switch and invest in long-term savings for your wallet and the planet. 

Let’s look at a table. 

It shows different AFUE ratings and their corresponding efficiency percentages. 90 means 90% of the fuel is converted into usable heat. The rest of the 10% is unused or wasted.

AFUE RatingEfficiency %

Variable Speed Blowers

Variable speed blowers are key for optimal energy use and performance in HVAC systems. They can adjust the motor’s speed to the heating or cooling demands. This leads to less energy used and more accurate climate control.

Check out the table below to see how variable speed blowers affect system efficiency:

Blower SpeedEnergy ConsumptionSystem Efficiency

Short Cycling Prevention

With incentives and tax credits, you won’t even remember paying full price. To avoid short cycling, consider several factors like:

  • System size
  • Thermostat placement
  • Maintenance & cleanliness of air filters
  • Adding zoning controls
  • Programmable thermostat with correct settings.

Incentives and Tax Credits

To learn more about the potential cost-saving options available for installing a high-efficiency furnace.

Let me share about the incentives and tax credits you can receive for your new furnace installation

Available Incentives and Rebates

There are many incentives and rebates available from different organizations. 

Here are some examples:

IRSFederal tax credits for renewable energy systems installation.
EPATax credits for energy-efficient home upgrades.
State governmentTax deductions or exemptions for certain industries like agriculture.

The Department of Energy says that homeowners who install solar panels can get a federal tax credit of up to 26% of the cost.

Qualification Requirements

Eligible for incentives and tax credits? Certain requirements must be met. 

Let’s look at the specifics in a comprehensive table.

Qualification RequirementsDetails
Business LocationMust be in designated area/zone
Industry TypeMust fit a targeted industry category
Employee CountMust have a minimum number, usually 5-50
Investment AmountMust invest a minimum amount into the business

National Average Savings

National average savings vary a lot, depending on incentives and tax credits from different regions. 

 So, we made a table of the average savings from different incentives and tax credits.

Type of Incentive/Tax CreditNational Average Savings
Green Energy Tax Credits$4,000-$8,000 per year
Home Renovation Tax CreditsUp to $1,500 per year
Electric Vehicle IncentivesUp to $7,500 one-time credit for new buys
Solar Panel Tax CreditsUp to 26% of total installation cost

Safety Considerations

To ensure your safety during the high efficiency furnace installation process, it is important to take certain precautions and considerations. 

Carbon Monoxide and Gas Leaks

It’s key to prioritize safety in our homes and that includes being mindful of gas leaks or carbon monoxide. 

  • Carbon monoxide is a colorless, odorless gas that can be harmful in high amounts.
  • Gas leaks can be even worse, due to their flammable and explosive properties.
  • Look out for symptoms like headaches, nausea, or dizziness as it could mean you’ve been exposed to CO.
  • If you see signs of gas leaking, act fast. Open windows and doors for ventilation and turn off all electricals. Don’t use phones or any other electrics until help arrives.

Proper Installation and Ventilation

Ensuring safety requires proper installation and ventilation. Not only does it promote better product performance, but it also helps avoid potential hazards. 

Here’s a 6-step guide for correct installation and ventilation:

  1. Refer to the manufacturer’s instructions before installing.
  2. Pick an appropriate place with good ventilation.
  3. Ensure all connections are tightly fitted.
  4. Use materials such as piping, ducts, or hoods following local regulations.
  5. All electrical work should meet safety standards and codes.
  6. Check for leaks or obstructions before use.

A gas leak at a residential building due to faulty installation of a gas meter regulator is an example of the risks of improper installation and ventilation.

It caused major property damage and injured people. This serves as a reminder of the need for proper installation and maintenance to prevent accidents.

Home Energy Audit

As a homeowner, you want your household to be safe. A Home Energy Audit is key. Experts assess your energy consumption – from heating and cooling to lighting and electrical appliances.

The pros use advanced equipment to find air leaks, insulation problems, inefficient appliances, and safety risks. They give ideas to reduce energy and improve safety.

Often forgotten: energy-efficient bulbs like LEDs are cost-effective and safer. They don’t overheat and are less likely to cause fires.

An example: 

One family had a devastating house fire due to bad wiring. Had they done a home energy audit, they could have fixed the issues. 

It’s worth investing in a Home Energy Audit, it could save lives and give peace of mind. Upgrade your furnace, not your fire department’s equipment.

Choosing the Right High-Efficiency Furnace

To choose the right high-efficiency furnace for your home with factors like home size and climate zone, fuel source, and heat exchanger as a solution. Features and options also play an important role in optimal performance. 

Home Size and Climate Zone

High-efficiency furnaces are a great option for homeowners looking to save money and reduce their carbon footprint. 

But choosing the right size and model is key to making sure it effectively heats your home without wasting energy or cash. Consider your home’s square footage and climate zone.

This is the suggested table:

Home Size (square feet)Climate Zone 1 (Btu/hour)Climate Zone 2 (Btu/hour)Climate Zone 3 (Btu/hour)
Up to 120036,000 – 46,00038,000 – 49,000N/A
1200-150045,000 – 60,00047,000 – 64,000N/A
1500-180055,000 – 72,00057.5k-78kN/A

Fuel Source and Heat Exchanger

Fuel source and heat exchanger are two key considerations when it comes to buying a high-efficiency furnace. 

Fuel source refers to the type of fuel the furnace uses. Heat exchanger transfers heat from the combustion process to the air around.

Natural gas is the most popular fuel source. It has steady and reliable heating and is affordable. 

Electric furnaces, though, can be more costly to run in the long term due to higher electricity charges.

Take a look at the table below.

Fuel SourceHeat Exchanger
Natural GasPrimary & Secondary Heat Exchanger
PropanePrimary Heat Exchanger
OilPrimary Heat Exchanger

Features and Options for Optimal Performance Of Furnace

When picking a high-efficiency furnace, it’s key to think about features and options that will make it work best. 

Here’s a table of key points to bear in mind when choosing a furnace:

AFUE RatingTells you energy efficiency, higher is better
Two-Stage or Modulating BurnerRegulates burner output to suit heating needs, more control and energy savings
Variable Speed Blower MotorChanges fan speed depending on needs improved comfort and savings
Zoned HeatingSplits home into separate areas better comfort and savings
Air Filtration SystemRemoves pollutants from air, cleaner air and less strain on furnace


Looking back at furnaces of the past, it’s clear that new tech has had a huge effect on modern furnace’s efficiency and capability. For instance, electronic ignition systems have replaced old pilot lights, improving safety and saving energy.