What Will My Gas or Electric Furnace Replacement Cost Be?

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  • 21 Dec, 2022
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What Will My Gas or Electric Furnace Replacement Cost Be?

No matter what type of furnace you have, it can be stressful if it suddenly stops working. We won’t sugar coat it: your furnace replacement cost can be expensive. However, the Aspire Heating & Cooling team can work with you to keep your furnace system costs low and ensure your new furnace lasts as long as possible. When you’re furnace isn’t working, we have your back.

Average Costs for Different Types of Furnaces

The cost of your new furnace will depend on a number of factors including the type of HVAC installation you choose. Most homeowners have a gas furnace, electric furnace or a heat pump. Oil is another option, though less popular due to the expense. Depending on where you live, you may also want to install a geothermal furnace, but for the purposes of this article, let’s stick to talking about the three main types: gas, electric, and oil.

On average, Home Advisor tells us that a new furnace costs about $4,444. Keep in mind, however, that this is a national average. In our experiences, a residential system can cost anywhere from $2,000 – $10,000. The main cost factor of a heating system will be the size of your home which determines your furnace size. In general, the bigger the furnace the more expensive it will be. Unfortunately, there’s not much you can do to cut back on this cost, since you need to heat your whole home.

The least expensive option is typically an electric furnace. It is fairly easy to convert from a gas system to an electric system, since homes already have electricity. However, over time, electric furnaces are more expensive to operate, since electricity costs more than gas. Even though an electric furnace has a longer lifespan than other types of furnaces, the lifetime cost is usually higher.

A gas furnace is much less expensive to operate. That said, gas furnaces are more expensive upfront than their electric counterparts. If you currently have an electric furnace, converting to gas may be an added expense as well since you need to add a new gas line to your home. Depending on where you live, your gas company may do this for free, or it may be an added expense.

An oil furnace is also an option. However, here in the south, we typically don’t see as many oil furnaces due to the price. Oil furnaces are more common in the northeastern United States. These are typically the most expensive types of furnaces with the highest fuel costs, but if you are interested in oil, we can go over your options.

Are High-Efficiency Units Worth the Cost?

Whether you choose gas or electric for your furnace installation, you have high-efficiency options. These furnaces cost anywhere from 50% to 100% more than the standard models. Is a high-efficiency furnace right for you?

Furnaces come with an Annual Fuel Utilization Efficiency (AFUE) rating, which gives you a general idea of how much you’ll spend on electricity or gas every year. The higher the number, the lower your costs will be. For example, an 80% unit will cost more to run than a 95% unit.

Along with considering the AFUE rating, we also recommend looking at the settings offered by your HVAC system. Sometimes, you’ll be able to save a lot of money simply by using a programmable thermostat and choosing a furnace type that uses the best technology to heat your home.

All furnaces are single stage, two stage or variable speed (modulating). A single stage furnace doesn’t have any flame settings available, so temperature in your home can fluctuate wildly even with a programmable thermostat. If you have your heat set at 70 degrees, for example, the temperature might dip well below before your single-stage furnace kicks on. Then, it will heat your home well above 70 degrees to compensate. This isn’t the most efficient way to heat your home, but the single-stage units are typically less expensive to install. To save upfront, you may lose a little bit of furnace efficiency.

A two stage or duel state HVAC system has a high flame setting and a low flame setting. This means your home’s temperature won’t fluctuate as wildly. For the least fluctuation, though, choose a variable speed or modulating furnace. A variable speed furnace keeps your home within 1-2 degrees of the temperature you set on your thermostat, so it is the most energy efficient. Of course, these more technologically advanced units are more expensive upfront, so it is something to discuss with our team. We’ll help you decide if this is the best option for your home.

Tax Credits for Going Green

Energy efficiency isn’t just about saving money. It is also great for the environment. Sometimes, the government has tax credits and grants available to help homeowners upgrade.

Typically, tax credits are available as a percentage of the furnace installation cost, with a maximum limit. Credit availability changes from time to time. We can let you know if there are any current credits available that you could claim. Additionally, we’ll ensure you have the proper paperwork if you do qualify.

Low-End Furnace Options – Saving Upfront Could Cost a Lot Over Time!

While you might be tempted to choose the least expensive furnace option, this could actually cost you money over time. In fact, you might pay two or three times the amount you would have paid if you had simply chosen the higher-quality unit to start.

Many inexperienced HVAC contractor teams have predatory practices where they convince people they need a new furnace. Then, they offer many low-cost options. Don’t get us wrong – you’ll still spend thousands of dollars on one of their furnaces! However, they are low-cost from the perspective that they cost less than the options offered by reputable HVAC contractor teams.

Sadly, you get what you pay for. Low-cost heating options are also typically low-quality. They need repairs often and only last 5-10 years. So yes, your new furnace installation cost might be lower, but you’ll pay a lot more over time.

Here at Aspire Heating & Cooling, we recommend a Trane furnace. This is the brand we use in our own homes and recommend to our friends and family. The total furnace cost for a Trane furnace is going to be higher than some other options, but the payoff is that these are extremely high-quality units. Whether you want an electric furnace or natural gas furnace, we recommend Trane.

Mini-Split Options for Homeowners

In some cases, it might make sense to install a small furnace alongside a mini-split unit. While the upfront furnace replacement cost might be higher or the same, this kind of zonal heating could save you money over time.

A mini-split unit is also known as a ductless HVAC unit. These HVAC systems provide both heating and cooling to a small area of your home (typically 1-3 rooms, but it depends on the size of your unit). With a mini-split, you don’t need to have ductwork. So, they are great for homeowners who want to move away from baseboard or radiator heat and window air conditioner units. You don’t have to retrofit your home with ductwork, which can be very expensive or even impossible in some cases.

Mini-split units attach to any exterior wall with a very small hole. They then provide zonal heating. It’s a great option if you have rooms or wings in your home that you don’t use very often. You can simply shut the door and keep the temperature setting fairly low.

Should You Choose Furnace Repair Instead?

In some cases, it makes more sense to repair your old furnace instead of replacing it with a new furnace. This is where it becomes really important to hire an HVAC contractor you trust. The right HVAC professional will give you quality advice about whether it makes sense to repair or replace. Unfortunately, less qualified professionals could lead you astray.

Here’s when we recommend replacing your HVAC system:

  • It is going to cost more to repair than it will to replace
  • The system is very old and likely to have more problems in the near future
  • Any repair will just be a band-aid solution (aka the HVAC unit is going to continue to need more repairs)
  • You want to go green or have better air quality in your home and you’re willing to pay for the upgrade

Some HVAC contractor teams jump immediately to replacing your system, even though it isn’t really the best option. In most cases, companies make more money on replacements. So, they will sometimes try to push you in this direction when a repair makes more sense.

On the other hand, sometimes a so-called HVAC professional will sell you on a repair when you really need replacement. They might be too inexperienced to know that a replacement is the better option. Or, they might think they can make more money from you if they perform repairs over and over again before finally telling you to replace your unit.

We’ll give you our recommendation, along with a price quote. Then, you have time to seek other quotes. We’re confident in the integrity of our advice and the transparency of our quote. That’s why our customers come back to us whenever they need help with their HVAC system.

Financing Your Furnace Replacement Cost

If you’re worried that you can’t afford a new furnace, we might be able to help. We offer financing to qualified buyers, including a lease-to-own program for buyers who might not qualify for traditional financing.

Additionally, we can help you understand any insurance coverage or home warranty you may have that covers the cost of a new furnace installation. In most cases, your homeowners insurance will not cover a new furnace. However, it depends on the situation. Warranties may or may not cover your furnace. We can speak with your insurance or warranty company to see if they can help you.

Last but not least, keep in mind that you might be able to finance your new furnace with a home equity loan or line of credit. Your mortgage lender can let you know if you qualify.

How Long Does It Take to Get a New Furnace?

When it’s the dead of winter, the last thing you want to do is spend days or even weeks without your furnace system working properly. Here at Aspire Heating & Cooling, we work hard to ensure you’re back up and running as fast as possible.

That said, we also take care to get the job done right.

The furnace type you choose will, in part, dictate how long it takes for us to complete the furnace installation. We don’t waste time, but we also make sure to cover everything on our checklists so you can rest assured that your furnace is installed correctly. The same is true of our repair team. We never want you to wonder if your unit will break down again in a few weeks. Our goal is that you can be sure we complete the job the right way the first time.

Of course, if you do experience problems after we leave, we’ll return to make it right. We want you to be completely satisfied in our work.

Are you ready for a free consultation with price quote? Fill out the form above to get started.

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