Save Money with a New, Energy-efficient Furnace

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Installation

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Installing an energy-efficient furnace requires removing your old equipment. In old houses, watch out for asbestos, which may be wrapped around boilers, furnaces, and hot water or steam pipes, as well as around old furnace ducts. Asbestos should be removed only by a hazardous-waste specialist.

Installation also may require a new flue and air intake for induced-draft models. Electrical and gas service must be temporarily disconnected. All of these steps require considerable knowledge and skill and should be performed by professional installers. (Working with gas lines carries a risk of explosion, too.) In many locations, installers must be licensed by the state.

Shopping Tips

Although energy-efficient furnaces are typically more expensive than less efficient models, the higher initial cost is often offset within a few years through lower energy bills. After this period, the new furnace becomes a source of tax-free “income.” Remember, too, that the higher upfront investment also provides a hedge against rising fuel costs.

Many incentives are available to homeowners and can help lower the initial cost of a more efficient furnace. Visit the Database of State Incentives for Renewables & Efficiency, and check with your energy provider.

When buying a new furnace, be sure the system is properly sized to your home, especially if you have retrofitted your home for energy efficiency. Contractors often oversize furnaces based on the misconception that this will ensure plenty of heat. Unfortunately, oversized furnaces tend to cycle on and off more frequently than properly sized systems. This, in turn, results in less-efficient operation. (It takes a while for a furnace to reach maximum efficiency, so if it is cycling on and off, it runs at peak efficiency less often.) Start-ups also require more fuel. All of these factors mean more fuel consumption — which may offset new furnace efficiency gains.

According to the U.S. Department of Energy, heating systems are frequently two or three times larger than required to meet the demand for heat! As a rule, a heating system should be no more than 25 percent larger than the calculated heat load (heat requirement).

Be sure to hire a reputable contractor who is capable of properly installing the new equipment and also capable of accurately calculating the heat demand — taking into account any energy efficiency measures you’ve taken, such as added insulation. Also follow maintenance recommendations and hire a professional to periodically inspect and maintain your system.


What Will It Cost?

The cost to replace a furnace will vary according to the size of your house, energy-efficiency measures you have in place (such as high R-value wall and attic insulation, properly sealed vents, efficient windows or a programmable thermostat), and the features and efficiency of your new furnace. The cost to remove the old equipment may be higher if hazardous materials, such as asbestos insulation, have to be removed.

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