Furnaces have a lot of variables that help determine the cost of a new furnace including size and heating fuel.
Cost of a New Furnace Factors
Should you replace your furnace or buy a new one? These factors help you make the right decision.
Considering the Furnace Replacement Cost
If your furnace is no longer working and you have decided to move forward with a new furnace cost, how do you decide on the right furnace and what will the cost of a new furnace be in the end? Most furnaces last anywhere from 15 to 20 years, depending on the type. If your furnace was old, the type you used to have is probably no longer available. You will have to choose a new type and style of furnace and start from scratch. That is actually a good thing because furnaces today are much more energy efficient. The most common type of furnace in homes today is powered by natural gas. As far as gas furnace cost goes, if you are looking at natural gas, the average range is anywhere from $2,200 to $3,800. The gas furnace cost could be higher depending on how hard the installation process is or if you decide to get a unit that is higher in efficiency. Oil furnace replacement cost options came before gas models and they are still around in a few states. The furnace replacement cost in these cases is less, but the efficiency is poor compared to other options. Sometimes ductwork has to be adapted as well. Electric heat is another option. These furnaces generally range between $1,800 to $2,700. Electric furnaces don't work well for large spaces, but they are energy efficient in smaller homes. Heat pumps are gaining popularity in the furnace world as well. They pull heat from the air or ground and push it into the home. They can also be used as air conditioners in the summer and are often used in conjunction with another type of heat as a supplement.
Instead of simply looking at the upfront cost of a new furnace, you need to also consider the furnace's efficiency. Efficiency will help the long term furnace cost of operation go down. Heat output is expressed in the British thermal unit (BTU). Most homes can be served by a 60,000 BTU furnace. Units that have a higher rating aren't always better, especially for smaller homes. They will bring up the new furnace cost and they will hit the temperatures you set faster and then shut off. That will give you an inconsistent level of comfort in your home. Older furnaces are rated at 80 percent efficient or less, so 20 percent of the heat they generate is wasted. Newer models are usually at 90 percent or better. Some even reach the 95 percent range. Even a small jump in efficiency will decrease utility bills. You want to have a furnace that will efficiently and effectively heat your home. Furnaces are often referred to in stages. Stage one are older furnaces that run at full power all the time. Stage two furnaces run at 65 percent in order to conserve fuel and then ramp up as needed. Stage three models are the most expensive and they run anywhere from 33 to 90 percent of their power at small intervals so they are efficient. You will want to ask a lot of questions about efficiency when you look into furnace replacement. The efficiency of the furnace will determine how much you are paying on your utility bills. If you have a larger budget, it is better to get a more efficient furnace and save money later on heating costs.
Labor and Warranties of Furnace Cost
When you look into the furnace cost, you also have to consider what it will cost to pay for the labor you need to install the furnace. The price of labor isn't a fixed item. Most companies charge around $75 for a licensed installer and $50 for someone who will help the installer. If the installation takes 8 hours, the labor alone can cost $1,000. Installation costs can go up if you need ductwork modification or repairs or if the new furnace is larger or smaller than the old unit. There are two warranties you will want to take into account when you get a new furnace. The first warranty comes from the manufacturer. These warranties come with the furnace and protect you from defects the furnace itself might have. If you have a pilot light that won't stay lit or fans that don't operate, you will get those things replaced or fixed as part of the warranty. The contractor's warranty covers the labor involved in making repairs if the furnace doesn't work right. Those warranties are usually good for 5 to 10 years. Some contractors offer extended warranties for an extra charge. You will want to have all of your warranties in writing in a specific manner so you know exactly what is covered and for how long. The cost of installing a furnace can vary, but you can avoid pitfalls by doing some research and looking into several contractors. Investigate the extended warranty program as well and look into the regular problems with the furnace you purchase. If the furnace you buy has common issues at a certain time range, buying an extended warranty might be worth your money. Otherwise, you can save the money on an extended warranty and spend it on repairs if they are necessary in the future when calculating the cost of a new furnace.