According to Forbes, the average furnace replacement cost is $4,700, so you may wonder how to reduce the expense. Despite high installation costs, there are ways to save. Monarch Home Services is committed to helping you get the most out of your investment. As a leading heating contractor, we can address any issue, and when it’s time for furnace replacement, we install top-rated residential heating systems.
Has your heater stopped working, or is it running inefficiently? Has your home outgrown the current system’s capabilities? If so, we’ll look at eight ways to lower the furnace replacement cost so you don’t break the bank.
- Consider the Type of Furnace
- Monthly Energy Bills Will Increase
- Keep the Furnace in the Same Place
- Compare Quotes from Different Contractors
- Take Advantage of Financial Incentives
- Consider the Unit’s Efficiency
- Schedule Installation for the Off-Season
- Prepare Your Home Before the Contractor Arrives
1. Consider the Type of Furnace
Equipment prices vary depending on the type of furnace. Natural gas furnaces are typically the most expensive (they can cost up to $9,500). Switching from an oil furnace to a gas-powered unit is even costlier as it requires installing a gas line and connection.
Electric furnaces can cost up to $7,300 depending on size and other factors. Installation doesn’t involve gas line work, but electrical upgrades (a dedicated circuit, new breaker panel. etc.) may increase costs. As for whether long-term costs justify upfront savings, how mild a winter you have is a major factor. These units use a lot of electricity.
The technology can also impact installation costs. For example, a single-stage furnace can have a different price point than a more efficient two-stage or modulating furnace.
2. Don’t Oversize the Unit
The size of a furnace is measured in British Thermal Units (BTUs). The more BTUs a furnace is rated for, the more costly it is. Consider the following examples:
- A 30,000-BTU furnace averages $1,500.
- A 60,000-BTU furnace costs around $3,000.
- A 70,000-BTU furnace is about $3,500.
- A 100,000-BTU furnace costs about $5,000.
- A 120,000-BTU system costs roughly $6,000.
This is one of many reasons to carefully consider furnace size, although improper sizing can have many implications beyond upfront costs.
Oversized furnaces don’t run efficiently. They can heat your home too quickly and shut off too soon. Short cycling burns more energy and increases wear, leading to higher repair costs. An undersized furnace may cost less upfront but may run constantly. Either way, you’ll spend more over time and may have to replace the unit sooner.
Factoring your home’s square footage and whether it has drafty windows or cathedral ceilings helps determine the best-sized furnace. Your local heating contractor can help calculate this based on industry standards.
3. Keep the Furnace in the Same Place
The furnace replacement cost is higher if you move it to a new location. Depending on the unit, this requires new gas or electrical connections and remodeling work. You might have to repair walls and floors, insulate new parts of your home, and move ductwork and exhaust components. To minimize extra expenses, have the installer put the new furnace in the same place. It can save a lot of headaches.
4. Compare Quotes from Different Contractors
You can spend less on furnace replacement by doing your research. Find reputable contractors based on their websites, online reviews, and recommendations, and contact them for price quotes. To know what kind of deal you’re getting, compare the prices and also the services included in each estimate.
However, don’t compromise on quality over cost. If a quote is too low, the contractor may use inferior equipment. Quality workmanship can also be a concern if the labor rate is lower than average. In short, expect to invest in quality service. Being knowledgeable helps find a reasonable deal without risking higher long-term costs.
5. Take Advantage of Financial Incentives
Various financial incentives exist for heating systems, especially energy-efficient ones. First, look for heating contractors that offer coupons and seasonal deals. Other opportunities to save on the furnace replacement cost include the following:
- Manufacturer rebates on specific models.
- Utility company rebates in your local area.
- Tax credits up to 30% of the installation cost.
The Internal Revenue Service (IRS) has established the Energy Efficient Home Improvement Credit. It can save you as much as $1,200 on a qualified furnace installed through 2032.
6. Consider the Unit’s Efficiency
Purchasing a lower-efficiency furnace will save you money upfront. However, it can increase energy bills, offsetting cheaper installation costs. The unit’s efficiency rating can help you plan. For example, a 25% more efficient furnace can cut your bill by 25%. However, whether paying more for installation saves you money depends on energy costs in your area.
7. Schedule Installation for the Off-Season
Generally, installing a furnace costs more in the winter than at other times of the year. Prices are higher and contractors are busier. Your best chance to reduce the furnace replacement cost is during the spring or fall when demand is lower.
8. Prepare Your Home Before the Contractor Arrives
Preparing for the installation team’s arrival can save technicians time. Therefore, you can avoid costs they’d otherwise charge for the time and effort of prepping the space.
You can help the installer in the following ways:
- Disconnect your old furnace (if possible).
- Remove any clutter from the installation area.
- Clear obstacles between the front door and the furnace.
- Relocate furniture as necessary.
- Be available when the installers arrive.
- Have your ductwork inspected/sealed/repaired in advance.
Why Are Furnaces So Expensive?
Furnaces are complex, hard-working appliances. The type of furnace, its size, and its efficiency rating impact the cost of equipment and installation. The higher the quality of parts and the more reputable the brand, the more you’ll spend. Labor is another consideration, as installers may charge between $75 and $150 per hour (for a job that takes four to eight hours). The costs of permitting and removing your old furnace are also factors.
Contact Us for a Furnace Replacement Cost Quote
Monarch Home Services installs high-quality heating equipment in the San Joaquin Valley. We help make important decisions when replacing your furnace. Our heating installation technicians work with any make or model and can explain your financing options. For more information or to schedule a consultation and quote on your furnace replacement cost, call (661) 452-8707 or use our contact form.