A trustworthy furnace is essential for the winter, keeping you and your family warm at home and reducing monthly utility costs. If your furnace is over 18 years old, be proactive and save to install a brand-new, energy-efficient replacement. New furnace installation costs roughly $2,500 per unit and around $4,800 for a full installation, depending on where you reside.
Still, depending on a number of variables, such as the ductwork involved, the disposal fee, and labor charges, they may cost you more or less than this amount. Ahead, we’ll discuss the considerations you should make when budgeting for a new furnace installation.
What Is Included in the Estimate of a Furnace Installation?
If you are wondering why the price of installing a furnace is so expensive, it’s important to know what factors are included in the estimate for your furnace installation. The following factors impact the overall budget for your heating installation:
The price of your furnace installation may vary depending on the type of furnace and fuel you use to heat your home.
- Cheaper upfront: Electric furnaces can cost about average, but their lifetime operating expenses are significantly greater than other types of furnaces.
- Cheaper overall: Gas furnaces demand about $3,000 on average upfront, but because natural gas furnaces are substantially less expensive overall, they are much more cost-effective over the course of the appliance.
- Mid-range: A propane furnace typically costs $4,000 to buy and install. Propane furnace installation is less expensive than natural gas, but the fuel might be much more expensive.
- Most expensive: Oil furnaces are no longer as popular as they once were mainly due to price but can cost, on average, about $6000 and up.
Believe it or not, a lot of planning is involved with installing a furnace. The other components that determine the overall cost of furnace installation include:
- How long it will take to install a furnace
- Where you are installing the furnace
- If return vents or new ducting needs to be installed
- If improvements need to be made to the drywall or ductwork, such as duct sealing. Most repairs cost anywhere from $250 to $800.
- If you are switching from an electric furnace to a gas, gas lines will need to be installed
Annual fuel consumption efficiency is used to gauge the effectiveness of residential heating systems (AFUE). This number, stated as a percentage, reveals how much energy the furnace draws is transformed into heat. Your furnace is more energy-efficient the higher its AFUE percentage.
Although there are furnaces on the market that can attain 98% AFUE, the federal AFUE standard for new furnaces is currently set at 80%. These models provide long-term energy cost savings. However, installation costs are higher than those of lower AFUE versions.
Each furnace company has a different price point for its equipment. While some manufacturers market their products as affordable and practical, others charge more for their furnaces because they have more advanced and comprehensive features.
These attributes could include variable-speed blowers, two-stage gas valves, or quiet combustion. Instead, you might not want these perks and opt for a more affordable, basic model. Everyone has a furnace option; ask your furnace retailer for further details on brands that match your budget and needs.
Modern furnaces are available in various sizes based on their heating capacity. Installation fees for furnaces with greater heating capacities are higher than those with lesser capacities.
Your installation professional will perform a Manual J HVAC load test to determine the right size furnace for your house. Your unit will have to work harder than necessary to circulate the air if it is not big enough, and a too-large one won’t effectively heat your house.
A larger furnace will be required for a 3,500-square-foot house than for a 1,500-square-foot house. Therefore, you should expect to pay extra to have your furnace installed if your property is larger. This crucial step will ensure you reduce your monthly energy expenditures and installation charges.
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How to Save Money on the Installation of Your New Furnace
It might be expensive to buy and install a new furnace. Fortunately, there are a few ways you may cut expenses. The following actions will help you save a few dollars on your total bill:
- Look around for discounts, special offers, and rebates from various furnace manufacturers and installation businesses
- Set aside money each week for a new furnace; you’ll be shocked at how much you can accumulate if you do this regularly
- To apply for financing or a loan, visit your neighborhood bank
- Check with your power company and your local government to see if you can take advantage of any tax breaks or refunds.
- Shop around to obtain price quotes
- Find furnace recyclers in the area, this can save you anywhere from $60 to $500 in furnace removal fees.
Do You Need a Permit to Install a New Furnace?
You must obtain the necessary legal permits before installing your new furnace. Permit prices might range from $350 to $1,800, depending on where you live. Permit expenses could make up as much as 25% of your overall costs.
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How Much Is a Furnace Inspection?
Your safety and the efficiency of your new heating system depend on having your furnace inspected. Inspectors are trained to spot any issues that could prevent your new furnace from running safely and effectively. Typically, inspection fees run about $100.
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Finding an Affordable HVAC Company to Install Your New Furnace
There are significant differences in the price of installing a furnace depending on a variety of criteria. The HVAC firm that services you, however, is the most crucial element and unquestionably the one with the greatest impact on the cost.
If you live in Arizona or Nevada and need a new furnace installed, contact Ambient Edge to schedule an appointment.