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How Much Does a High Efficiency Gas Furnace Cost?

In the United States, gas is the most common way of heating a home. The point of a gas furnace is to help convert natural gas into heating energy. The efficiency of gas furnaces is measured in its annual fuel-utilization-efficiency rating. Investing in a high-efficiency gas furnace is a long-term investment for homeowners that will eventually pay for itself. Besides just saving homeowners money, high-efficiency gas furnaces also emit far less pollution and produce steadier heat than older furnaces.

The Costs

  • Minimum: $3,000 per unit
  • Maximum: $12,500 per unit

The main cost that is associated with replacing an old furnace with a new high-efficiency one is the furnace itself. The costs of high-efficiency gas furnaces vary significantly. They can range in price from $3,000 to $12,500 per unit. This is a huge jump from traditional gas furnaces that usually cost around $1,500 to $5,000. To be considered a high-efficiency gas furnace, the unit needs to have an AFUE rating of at least 90 percent, but they can go all the way up to 98.5 percent. Due to regulations set by the Department of Energy, all furnaces require an AFUE rating of at least 80 percent.

The cost to have a high-efficiency gas furnace professionally installed can be several thousand dollars. The good news is that the purchase and installation costs are offset by the money that the homeowner saves on his average heating bill. Additionally, government incentives for upgrading to an energy-efficient furnace bring down the final price.


To have a high-efficiency gas furnace installed in a home, there are a few things that are needed. Below is a detailed breakdown of some of the required materials and tools. In most cases, the professional contractor provides most of the materials needed, except for the actual furnace.

  • High-Efficiency, Gas Furnace
  • Gas Leak Detector
  • New Duct Work
  • Caulk Gun
  • Wire Strippers
  • Hammer
  • Screwdriver
  • Tape Measure
  • Pry Bar
  • Drill and Drill Bits
  • Crescent Wrenches

Advantages and Disadvantages of High-Efficiency Gas Furnace

The pros heavily outweigh the cons when it comes to installing a high-efficiency, gas furnace. That being said, there are still a few cons that homeowners should consider before they decide to make the switch.


The biggest pro that comes with installing a high-efficiency gas furnace is the reduction in monthly heating costs. This helps to offset the high cost of installing and buying a high-efficiency gas furnace. These furnaces are also eco-friendly and help the homeowner lower his or her carbon footprint. It should also be noted that these types of gas furnaces cost less per month to operate than other alternative heating options such as oil. Last but not least, there are a number of federal tax rebates in place that can help homeowners save a little money when upgrading to a high-efficiency gas furnace. It is important to remember, however, that not all Energy Star furnaces are eligible for this rebate. To get a federal tax rebate, the homeowner needs to purchase a furnace that has an AFUE rating of at least 95 percent.


There are not many cons associated with high-efficiency gas furnaces. First of all, buying a high-efficiency gas furnace is more expensive than buying a low-end furnace. Yes, in the longer run the homeowner will save money by going with the high efficiency gas furnace, but the up-front cost is still going to be more. Also, natural gas is not available in all areas. This means that some homeowners might not even have the option. It is important for the homeowner to make sure that natural gas is available in their area. Last but not least, natural gas leaks are very dangerous. All homes that have a gas furnace of any kind require gas leak detectors.

Repair or Replace a Gas Furnace

Knowing when a gas furnace should be repaired or replaced is something that only experts can determine. Upgrading an old furnace to simply go green and save money is one thing, but homeowners who want to wait until their current gas furnace dies should pay attention to the warning signs of failing unit.

The first thing that homeowners normally notice is low airflow. If this is the case, the homeowner should check the furnace filter to see if it is clogged. If it is, cleaning the air filter can help improve airflow. If it is not, there could be a bigger problem and a professional should be contacted.

Every season, gas furnaces should be checked for loose wires. If the gas furnace has an electronic thermostat that runs on batteries, changing them every few seasons is a good idea. If a gas furnace is suffering from burned out fuses or is tripping the circuit breaker, this could be a sign that the fan or the circuit board needs replacing. This is a job that can only be handled by a professional.

In general, repairing a gas furnace is usually a better idea than replacing it. However, if the furnace is more than 10 to 15 years old, the homeowner can generally save money every month by switching over to a more fuel-efficient furnace.

Last updated on May 17, 2016

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