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What Determines the Cost of a Furnace?

Are you trying to find out how far the cost of a furnace will put you back?  We’ve heard “how much does a new furnace cost?” more than we’d care to admit. And while it’s a fair question, customers are always disappointed by the answer. Not because it’s out of budget, but because it highly depends. There is no set answer.

This can be confusing for those who are trying to get a black and white answer. But while the price of a furnace will differ from customer to customer, there are specific factors that will determine the total amount.

Fuel Source

When you inquire about a new furnace, the fuel source is usually the first port-of-call. The fuel source you choose will impact the overall cost of a furnace.

There’s electric, gas, natural, or oil to choose from. And while the fuel source might not make a drastic change to the overall price, it’ll certainly have an effect.

Generally speaking, electric furnaces are a little more costly than natural gas. That said, maintenance and operating costs can flip that on its head and make gas more affordable in the long run.

Switching fuel sources is expensive, though. So, before you decide on installing a new furnace, make sure you weigh up your options in terms of fuel source.

Furnace Size

Some say bigger is always better, but this isn’t the case with furnaces and other HVAC equipment.

You’ll need to have the correct size furnace for your property. The proper size is calculated with your property’s square footage. That said, there’s a far more complicated calculation used by professionals that work out the ideal size.

Energy Efficiency

While new furnace-owners may not be aware of it, those who have owned a furnace in the past and have not updated it for over 15 years will be amazed at how energy-efficient modern-day furnaces are. We measure energy efficiency in AFUE (fuel utilization efficiency rating).

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When picking out a furnace, pay close attention to energy efficiency. Anything above 90% is deemed as “good,” but if you can grab yourself a furnace with 97% efficiency or more, you’ll save a whole heap on energy in the long run.  But, of course, it’ll come with a higher up-front investment.

Installation Cost

You’ll need to pay labor costs for professionals to install your new furnace. There’s more to installation than most would think. A furnace install means you have someone working with natural gas and electrical issues. Both sensitive things that do need the touch of a professional.

Image: a person going over their finances to determine the cost of a furnace.

Also, as with any job, if there are complications – needing an upgrade to your electrics, for example – it could creep up in cost.

Other Factors to Consider

The above 6 factors will influence the cost of your new furnace. However, there are other components you should consider when purchasing a new furnace:

Warranty

Having a warranty for anything you’ve spent money on makes the initial cost feel less of a blow.

Image: a woman going over a furnace warranty.

Knowing you’ve got peace of mind should something go wrong with your furnace is simply priceless. So, if you’re debating over two furnaces – even if one has a lower up-front cost – it’s worth selecting the furnace with the better warranty.

Maintenance

Furnace maintenance – contrary to popular belief – is not something that isn’t strictly necessary and only pushed by the HVAC to make a better profit.

A furnace needs regular maintenance (once per year). Doing so will actively boost the performance and elongate the lifespan.

Image: a person changing the air filter.

Plus, cashing out on annual maintenance checks, (which will cost you anywhere between $50 to $400 depending on your furnace and its condition,) will save you money on your energy bills.

Tax Credits

Have you taken a look at the Federal Government’s offer that allows homeowners and businesses who have purchased a new energy-efficient appliance to claim back $150 from their tax bill?

It’s worth taking this into account when purchasing a new furnace. You’ll be doing the planet a favor and it makes tax-return time a little sweeter.

Insulation

Insulation material has a direct correlation to performance and efficiency. You want to make sure as little heat as possible escapes the furnace, so better insulation will lower your monthly energy bills and heat your home more effectively.

Image: insulation batting in an attic.

While this may cost a little more up front, you’ll be paying less in the long-term.

Considering having a new furnace installed in your home? Why not reach out to a member of our friendly team today.

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