All good things must come to an end, and this includes household appliances. If repairs have become more frequent, it may be time for you to put in a new furnace. Replacing a furnace is a significant household expense. Let’s look at how much this project may set you back.
The cost of the new furnace depends on the type chosen. If you select a furnace that uses natural gas, expect a price between $2,250 and $3,800 for the unit. The installation cost (which varies depending on local labor costs and the unit location in your home) is added to this amount.
Although oil furnaces are less efficient compared to the gas furnaces, they are still sold in some areas. When installing an oil furnace, the unit cost will run around $2500. If ductwork is required, that will be an additional cost. However, you should remember that more efficient unit with more complex ductwork can cost $10K.
If you select electric heat, the cost would be between $1,800 to $2,700. Electric heaters are not the most efficient option when it comes to heating large spaces.
Another alternative to consider is a heat pump. A heat pump is a unit that draws heat from the air or ground. These units come with refrigerant coils to use to create cool air in the summer. Heat pumps work best in temperate climates. These HVAC units function decently during summers; however, during frigid weather, their efficiency is limited.
Labor costs are a significant portion of this project. The fee not only covers installing the new furnace but disconnecting and removing the old one. Do not expect a flat rate. Average hourly rates for a licensed installer run about $75 per hour. If the installer has a helper/assistant expect another $50 per hour. The total labor cost will include time needed to installation of ductwork, electrical or gas hookup, and even drywall repair.
It is difficult for a homeowner to judge how long each of these jobs will take, so before starting any work, obtain an estimate from at least three HVAC installation services. For your protection, always use a licensed and bonded contractor for this type of work.
A new furnace will have two warranties; manufacturer’s warranty and contractor’s warranty. These costs are included in the total budget. However, if you want an extended warranty from the contractor, that will be an additional cost.