If your furnace struggles to keep your home warm, requires constant repairs, or causes a spike in your energy bills, it might be time for a replacement. However, the average cost of a furnace replacement can vary significantly based on factors such as the types of furnaces, furnace size, and furnace installation costs. In this guide, we’ll explore what impacts the average furnace replacement cost, the features to consider, and how to ensure you’re getting the best value for your investment.
Types of Furnaces and Their Price Ranges
The furnace cost largely depends on the type of fuel it uses, which influences both the initial furnace prices and long-term energy costs.
- Electric Furnaces: These options are rare in this climate and are usually paired with a heat pump. The price range, typically between $4,000and $7,300. Electric furnaces can lead to higher energy bills, especially in colder climates.
- Natural Gas Furnaces: With a cost range between $4,500 and $9,500, natural gas furnaces are a popular choice due to their efficiency and relatively lower operating costs. Models with high annual fuel utilization efficiency (AFUE) ratings can save more on energy costs.
- Propane Furnaces: These cost about the same as natural gas units, but propane is often used in rural areas where gas lines are unavailable. The price range is typically $4,500 to $9,500.
- Oil Furnaces: Common in older homes, oil furnaces can cost between $4,500 and $8,000. Heating oil can be more expensive, and these furnaces often require more regular maintenance.
Key Factors Influencing Furnace Installation Costs
The average furnace installation cost is not just about the unit itself. Here are key factors that affect the overall price:
- Furnace capacity: A larger home needs a furnace with a higher furnace capacity to heat it efficiently. The capacity affects the cost but not as much as other factors.
- Efficiency: The efficiency of the furnace will affect the furnace cost. Replacing your furnace with a high-efficiency furnace will decrease your energy bills but with the increased cost of the install the main concern is the return on investment. In the Denver area with current gas prices, the difference in cost between an 80% furnace and a 95% usually takes 6-8 years to pay back. So if you plan on staying in your home this might be a good option for you.
- Function: New furnaces are designed to stay on longer at lower capacities to maintain temperature and provide a more even temperature throughout the home. Single stage furnaces come on and off at 100% of capacity. Two stage furnaces will start at 70% and go to 100% as needed. Modulating furnaces can go as low as 35% and in one percent increments find exactly what is needed at any given moment. The function of the furnace will affect the cost the most.
- Labor Costs and Professional Installation: Skilled furnace installers charge $75 to $150 per hour, with labor making up 20% to 30% of total installation expenses. For the best results, hire professional furnace installers who understand aspects of furnace installation for different furnace types.
- Additional Installation Aspects:
- Codes change through the years and some new code requirements can increase the cost.
- Permits and Inspections: Most furnace installation projects require local permits, and inspections are essential to ensure compliance with safety codes.
- Safety Features: Many homeowners add carbon monoxide detectors to prevent the risk of carbon monoxide poisoning from a cracked heat exchanger.
When Is It Time to Replace Your Furnace?
Knowing when to repair or replace your furnace can help you save money and improve your home’s comfort. Consider these factors:
- Age and Life Expectancy: Furnaces can last 15–20 years with regular maintenance. If your current furnace is reaching this age, it might be time to invest in a brand-new furnace.
- Frequent Repairs: Ongoing furnace repair costs add up, particularly if you’re dealing with common furnace repair problems like a cracked heat exchanger or malfunctioning thermostat. Investing in a new unit can eliminate the need for costly repairs.
- Heating Efficiency: If you’ve noticed a jump in your energy bills, your furnace might be struggling to keep up with heating demands due to reduced efficiency.
- Uneven Heating: Rooms that are noticeably warmer or colder than others indicate that your furnace might not be able to distribute heat evenly.
Tips to Save on Furnace Replacement Costs
A furnace replacement can be a significant expense, but there are ways to save on furnace installation costs:
- Choose the Right Furnace Capacity: Selecting the right size furnace is crucial. Too small, and it will struggle to heat your home; too large, and you’ll waste energy.
- Energy Efficiency and High-Efficiency Models: While high-efficiency models can cost more upfront, the long-term savings on energy costs make them worth the investment.
- Look for Energy Tax Credits: Some high-efficiency units qualify for energy tax credits that can help offset the initial furnace cost.
- Schedule in the Off-Season: Installing a furnace during the spring or fall may qualify you for discounts from furnace repair companies or furnace manufacturers.
Call Controlling Systems Today to Discuss Your Furnace Replacement Needs
If you’re considering a furnace replacement and want expert advice on furnace models, furnace installation, or average furnace replacement costs, Controlling Systems can help. Our experienced team will assess your home’s heating needs and recommend the best options to maximize comfort and efficiency. Contact us today to schedule a consultation and ensure your home stays warm and energy-efficient throughout the Denver winter!
