If you have an older furnace, you may be considering getting a new one. There are various factors to consider to determine if this is a viable option. How much does it cost to install a new furnace? It largely depends on the type of furnace and the difficulty of installation.
Having a new furnace installed can be costly, not the professional skills necessary for a proper installation. While one may consider DIYing such a project, we recommend hiring a qualified technician. After all, you don’t want to damage your brand new furnace even before you’ve started to use it. It is vital to have a breakdown of the total cost of installing a new furnace before going shopping to ready your pockets.
Cost of Installing a New Furnace
Furnaces have been keeping people’s homes warm for a long time. The first one was installed in Quebec City in 1646, and the rest is history. Since then, we’ve relied on these devices to keep us warm in the winter and toasty during those chilly autumn nights.
Replacing an old furnace with a new, energy-efficient model can save money on your utility bills and improve your home’s comfort. According to the U.S. Department of Energy, proper maintenance and cleaning can extend the life of a gas furnace by 20 years or more. Yet, you will need to replace your older furnace with a new one at some point – the question is, when? The average life expectancy of a furnace is 15 to 20 years. If you have a more than 15 years old furnace, it may be time for replacement, especially if it has broken down and needs repairs.
If you’re looking to install a new furnace, you might be wondering how much it will cost you. The answer depends on several factors, but the average cost of installing a new furnace is around $4,000 for a mid-efficiency unit.
Homeowners should plan on spending around $4,000 on a mid-efficiency gas furnace. It is the most common type of furnace in North America and offers a balance between energy efficiency and price. High-efficiency furnaces cost anywhere from $5,000 to $10,000 because of their ability to save even more money on energy costs each year.
HVAC contractors typically charge by the hour for their labor plus the cost of materials. Furnace installation costs an average of $2,000. The cost can range from $1,000 to $3,500 depending on the type of furnace and the job’s complexity. Not including installation, furnaces typically range between $1,200 and $3,000. Higher-efficiency models can be considerably more expensive.
Factors That Affect The Price Of Your New Furnace Installation
- Location and Home Size
The size of your home and where you live significantly impact how much you’ll pay for a new furnace. A smaller home with less square footage will need a smaller unit than a larger home with square footage; as such, you’ll likely pay less for a furnace sized for your small home than someone with a larger residence will pay for theirs. The cost of living in your area can also influence what you’ll pay for a new installation. If you live in an area where labor costs are high, for example, the installation costs for your new furnace may be higher than they would be in an area where labor costs are lower.
- Furnace Efficiency Rating
If you’ve already done some research, you may have heard of AFUE (annual fuel utilization efficiency). It is one way to measure how efficient a furnace is — in other words, how effective it is at turning fuel into usable energy. The higher a furnace’s AFUE rating, the more efficiently it converts fuel into energy and the less fuel it wastes. An older natural gas or propane-fired furnace may have an AFUE between 56% and 70%, while newer furnaces can have ratings as high as 98.5%. Electric furnaces tend to be 100% efficient with no wasted fuel.
- Type of Fuel
Most furnaces run on either electricity or natural gas, but oil-fired models are also available. Natural gas is typically the most affordable option and has the highest efficiency ratings; electric furnaces are generally more expensive to install and maintain but don’t require gas lines or a flue. Oil furnaces tend to be noisier than their electric or natural gas counterparts and generally have lower efficiency ratings, although they’re often less expensive upfront.
The cost to install a new furnace will vary greatly, depending on which model of furnace, the extent of the repairs needed, the size of your residence, and so on. However, keep in mind that not all furnaces are created equal. The price you pay will be based on several more significant factors than others. So be sure to keep your budget in mind when it comes to your repair or installation costs. You can likely make an informed decision as to which furnace is right for you.