When you are considering to replace your furnace or if you want to buy a new furnace then first thing you need to think about is the source of energy for the furnace.

Most commonly during furnace installation, it will be powered by gas, that may cost in the range of $2,000 to $5,000 based on their efficiency and size. Your home must be all electric, then you can have heat pump-air handler system.

They function like an air conditioner during summer and also becomes primary heat source in winter season. Heat pump systems may range from $5,000 to $15,000 based on size and efficiency.

How efficient are all your furnace options?

Those furnaces having higher Annual Fuel Unit Efficiency (AFUE) are more efficient, however the initial cost will be higher. With more usage you will find better return on investment, as eventually it will spend less money due to reduced operating cost.

Any new models will be rated as 90% efficiency or even better with few of them can be as high as 98% efficiency that may result in much lower utility charges.

What is the size of the furnace?

Heat output of gas furnaces is measured in BTU (British Thermal Units). Those with higher BTU rating may not always be better for any smaller homes, as they are able to hit the desired temperature very quickly and then switch off.

Due to this inconsistency, your energy bill may rise significantly. Typically, a single gas furnace typically will start with 40,000 BTUs and can be 135,000 BTUs also. In case your home is more than 5,000 square feet, then would move to two systems instead of having largest system.

What will be installation cost?

Installation cost is totally based on your furnace brand that you select to install, and which HVAC contractor you prefer to hire.

Furnace installation will typically take the whole of day. Mostly for residential heating/cooling contractors may use 2 persons for installation. The labor cost will be almost half of overall price for installation.

Besides, if HVAC contractor can find any extra repairs on your existing ductwork or any other faulty components then installation costs may go up.

Following 4 things may affect cost of installing new furnace:

1. The brand

You may select the brand as per your available budget. Any high-end brands will   significantly increase your cost of the furnace replacement, which is not always necessary to get long-term results.

2. Upgraded features

If you are not living in an area with very harsh winter then there is no necessity to go crazy for any added features. All furnaces provide all the necessary functions that you may need to keep your home warm during winter.

3. Location of furnace

In case, you decide to install the furnace in any difficult spot in your home, then installation time will be longer and may increase your cost.

4. HVAC contractor

Do little research for selecting right HVAC contractors, and speak to them both in person and over the phone to satisfy yourself by asking all relevant questions regarding your furnace replacement.

With this you will have peace of mind that your contractor really is trustworthy and will do his best work for you.