Furnace Installation

How Much Does it Cost to Install a New Furnace

Finding the right furnace

The first thing you’ll need to consider is the type of furnace to install. Since most furnaces last between 15 and 20 years, chances are the wealth of choices now available didn’t exist when your original unit was purchased. The most common residential furnace is powered by natural gas and can cost anywhere from $3,500 to $7,000. Oil furnaces preceded gas and are still used in much of the area, but these furnaces tend to be less efficient. They cost between $3,000 and $6,000 to install, possibly more if existing ductwork needs to be adapted.

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There are three major types of Furnaces.

  • Single stage
  • Dual Stage
  • Modulating

Keep in mind the single stage is the least comfortable system and the modulating is an extremely comfortable system.
You can also choose to install electric heat, which can be with a heat pump, which pulls in heat from the air or ground using refrigerant coils. Air source heat pumps cost $4,500 to $9,000, while ground-source may cost upward of $25,000 and more. These heat pump furnaces can be used as air conditioning units in summer, and heating in the fall and winter.

Furnace efficiency

Gas furnaces come with a host of choices which can affect their price.
The first is heat output, measured in British Thermal Units (BTUs); an “average” home is well served by a 60,000 BTU furnace. Units with higher BTU rating aren’t necessarily better for smaller homes, since they’ll cost more and hit ideal temperatures too quickly, then shut off – the result is an inconsistent comfort level.

Efficiency is the next consideration. Older-model furnaces were often rated 80 percent efficient or less, which means 20 percent of the heat generated was lost to waste. Many new models are rated 90 percent or better, with some in the 94 to 95 percent range. This small jump in efficiency translates to a decrease in utility costs.

  • Single stage range is approximately either 82%, 90% or 95% depending on the manufacturer.
  • Dual Stage range is approximately either 82%, 90% or 95% depending on the manufacturer.
  • Modulating starts at 90% and goes to 97% depending the manufacturer

Keep in mind the lower the number the higher your bills.

It’s also important to determine how effectively a gas furnace can heat your home, in large part determined by its “staging.” Older furnaces were one stage, meaning they always ran at full power. Many newer furnaces are two-stage, capable of running at 65 percent when first starting up to conserve fuel, and then ramping up to 95 percent as needed. More expensive three-stage models also exist, which can run anywhere from 33 to 90 percent power in 1 percent increments.

Consider these tips to estimate the cost of a new furnace.

Considering labor costs

Installing a furnace also comes with labor costs. The price of labor isn’t fixed, but many companies charge as an installed price and do not separate the equipment and labor. This is not a problem and you want to compare the total cost only as part of the equation. You must also compare companies, prosses, warranty, guarantee, and installers.
Two warranties govern furnace installs and function. The first is the manufacturer’s warranty, which comes with the furnace and protects against defects in the furnace itself, such as inoperable fans or pilot lights that won’t stay lit. A contractor’s warranty covers the labor involved to make repairs if the furnace doesn’t work properly and is often good for a period of 5 to 10 years. Some contractors charge more for extended warranties.

Make sure to get any warranty in writing; also make sure that it specifies exactly what gets covered, for how long and what the contractor will do to fix the problem. Although the costs of installing a furnace vary significantly, you can avoid price pitfalls by doing your own research.

Verified Google Reviews!

Glen Pratt
Glen Pratt
22:48 04 Jan 18
I am new homeowner and had never got a heater inspection/tune-up... I scheduled one with Precision and had a great experience. My technician Steve was timely, professional, (funny), and honest. He showed me a few ways to increase the life of my system while also improving the quality of my air and lowering my utility bill. I recommend Precision Air for sure.read more
Corey Cronk
Corey Cronk
18:59 05 Jan 18
Precision (Mike + Team) were all a pleasure to work with. Work was done quickly with no mess and everyone was very professional. I will surely share my experience with friends and family. Do not hesitate to work with Mike and his team.read more
Nadja Frist
Nadja Frist
20:50 17 Jun 16
Were so glad we decided to go with Precision Air Heating & Cooling for our new AC and duct work, we couldn’t be happier. They sincerely care about their customers, have pride in their company and their work, and stand behind it. Without a doubt they are the best of the best. Any questions or concerns we had were addressed. We can’t say enough about how impressed we are of their knowledge, professionalism and care for us as clients. Precision Air Heating & Cooling, you are top notch, truly the best! Thank you for all that you’ve done!read more
Charlie Strickler
Charlie Strickler
19:53 24 Oct 16
I hired these guys to service my old boiler and radiator heating system. The unit was made in 1987 so I was expecting to have to get a new unit. While it does need to be replaced eventually I was happy that they didn't make me feel like I had to. They just serviced it and gave me a recommendation for a new one. They seem like honest guys. Thanks.read more
Exposurein
Exposurein
20:46 05 Mar 15
You installed new high efficient gas tank-less heater this winter and I wanted to wait to give a full review. Everything with the installation was very easy from Tim making the appointment showing up on time and being very helpful through our decision process. He did not try to get us to buy with all kind of specials like some of the other companies. One large company would not leave my home unless we signed that day. We had to throw them out all they were concerned with was selling us a heater! When Lou the installation manager came out to do the materials list he was polite and attentive to our needs. The men did not make do or improvise because they had all the right parts and it looks much better than my neighbors who used another local company. Greg did a great install on our oil to gas conversion. I could not believe that small wall hung unit would heat our home. Well it not only heat our home and hot water it reduced our costs a whole bunch! We normally used 900 gallons of oil at an average cost of 3.75 for yearly budget of 3400. This winter we only spent just over $600. Thank you Precision Air for guiding us on our new tank-less heating system and being so professional. read more
Bob Weber
Bob Weber
20:17 15 May 18
Precision Air was professional, courteous and did a great job. Would recommend them to anyone doing a oil heat to natural gas/central air conversion. As is usual there were challenges with an old house and they knew exactly what to do. We're lovin' the nice, cool, allergen free environment on these surprise 90* days!read more
Leslie Delhaie
Leslie Delhaie
16:41 05 Jun 18
We used Precision Air for a new/replacement installation. Precision Air was one of four installers that we met with and received pricing from. They were not the cheapest of the quotes but we chose them based on all factors. The entire process from the initial phone contact to the completion of my PECO rebate forms after the installation was handled with friendly professionalism - almost as though we were a friend of the family (we were not). And although they were not the cheapest of those interviewed, they gave us the most value for our dollar and their cost was well under (less than half of) our highest quote for a comparable system.read more
Craig Baker
Craig Baker
09:29 09 Aug 18
Very happy with Precision Air Heating and Cooling. My AC went down and I had to replace the system and furnace. Mike the owner was very responsive and informative. Got a very good system at a fair price with a solid warranty. Big props to his hardworking crew who did a great job with the installation.read more
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Precision Air Heating & Cooling
675 Tower Lane
West Chester, PA 19380

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