When the weather turns cold in the winter, you don’t want to be without a properly functioning furnace. Of course, replacing your furnace with a new one is not simple. This is a big financial commitment that requires careful budgeting. You want to ensure you can afford the costs but also that you are getting a quality system that meets your needs. Exploring the economics of new heating units requires some important steps and considerations.
Types of Furnaces
Getting a new heating unit is not a one-size-fits-all solution. Different kinds of furnaces are available, each with varying costs to install and run them. An electric furnace is typically the least expensive type. It has heat coils in the unit that warm the air and send it through ducts and vents to all areas of the home or building. It requires a significant amount of electricity to run, especially during the coldest times of the year. For this reason, people in the coldest regions of the country tend to avoid this type of heating system. It costs anywhere from $2,000 to $7,000 to install one.
A second option is a natural gas furnace, which costs between $3,800 and $10,000 to install. On the bright side, they use less energy than electric furnaces, so their operating costs over time will be comparatively low. The heat from these furnaces can also come out warmer than electric units.
Oil furnaces are popular in areas that experience extreme winters. You can expect to pay the most for oil-based units, as much as $10,000 or more, to put them in your home. Maintenance costs are also higher on oil furnaces. Fortunately, oil furnaces tend to last the longest. They are also safer than their counterparts.
Factors That Can Influence the Cost of Heating Units
The estimated costs of getting a new heating unit are wide because different elements can affect how much you pay. For example, you can choose an energy-efficient unit, which will usually cost about $1,500 more than a unit with a lower efficiency rating. But because they use less energy, your monthly heating bills will be less.
The size of the furnace will also play a role in your out-of-pocket costs. A furnace’s heating capacity is measured in BTUs. A smaller furnace with low BTUs won’t be able to heat a larger home, so a bigger unit will be necessary. Naturally, larger units will cost more than smaller ones. The brand you’re buying will also make a difference. You can find less expensive brands, but these might lack the quality of brands that have a higher price tag.
What You’re Paying for When You Get a New Unit
When you replace your old furnace with a new one, you could pay up to 30% of the total costs in labor. Removing the old furnace from your home will contribute to how much you pay in total. If you need to get new ductwork and venting, plan on having additional costs. Fortunately, the ducts and vents may still be in good enough shape to use with the new unit. You also might have to pay for county or city permits to install a new furnace.
If you are planning on getting a new furnace for the upcoming winter, consider these economic factors. Doing so can help you prepare and make the right choice about what type of unit to buy.