Over 43% of the energy used in US households goes toward space heating, according to the US Energy Information Administration. So, it makes sense that upgrading an old, inefficient furnace is a good way to cut your energy expenses at home.
Modern furnaces are far more energy-efficient than their predecessors, and may even earn you a deduction on your income tax nowadays. How much is a furnace going to cost you, though?
Before you go ahead and order your new furnace, read this guide to furnace installation costs to help you find the best deal.
Cost of Installing a Furnace By Type
Two major factors impact furnace prices, namely, the type of furnace you choose and its BTU rating.
BTU refers to British Thermal Units, which is a measure of the heat output of the pump. The larger your home, the higher the BTU rating you’ll need. Prices vary from $2,000 for a 40,000 BTU furnace to $8,000 for a 140,000 BTU unit.
The type of furnace you choose affects the purchase price, installation cost, ongoing costs, and fuel costs of the appliance. These are the major varieties of furnaces:
Gas Furnaces
Gas furnaces are expensive to install, but they’re highly efficient and cheaper to run than electric furnaces thanks to low natural gas prices. A gas furnace will set you back between $3,800 and $10,000 depending on how efficient it is.
Electric Furnaces
Like the Goodman electric furnaces found here, these furnaces are very efficient but work best in areas with a mild climate, as they’re expensive to run in very cold weather.
You’ll pay between $2,000 and $7,000 for a new electric furnace.
Oil Furnaces
Oil furnaces have a lower environmental impact than natural gas, although oil costs more than natural gas, and you’ll need somewhere to store it on-site.
You’ll pay between $6,750 and $10,000 for an oil furnace nowadays.
Mini-Split Systems
Ductless systems are easy to install and very efficient. They cost between $2,000 and $15,000 to install.
Geothermal Heat Pumps
These highly efficient space heaters have the lowest operating costs and may qualify for a tax credit. You’ll pay as much as $17,000 upfront for a geothermal heat pump, and repairs are expensive, too.
Factors Affecting Furnace Installation Costs
The average installation cost for a home furnace is between $1,166 and $1,413.
Furnace replacement may cost you more depending on the type of furnace you choose, where you live, and if you need to install extra components to keep it running.
Fitting new gas lines can set you back between $250 and $800. Installing ductwork and vents costs between $3,000 and $5,000.
You’ll also need to pay for permits and inspection costs when installing a new furnace.
Consider Your Heating Options
To sum up, furnace installation costs depend on the type of furnace you choose as well as how much heat you want to generate. Where you live can also impact the price.
More efficient furnaces may cost more, but they’ll help reduce your energy costs, and you may save on your annual taxes.
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