'Will a high-efficiency furnace save me money?'
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Here at Fire & Ice, we hear that question a lot when we visit homes. Homeowners in the market for a new furnace might be looking at their gas bill and wondering if an investment in a high-efficiency gas furnace might make a huge difference.
It's a good question that doesn't have a straightforward answer. There's no question that a high-efficiency furnace will perform better than a standard-efficiency one. But we don't always recommend ditching your old furnace for a high-efficiency one.
This article will look at high-efficiency gas furnaces and compare them to standard-efficiency ones. We'll also take a look at factors that affect your gas bill, and help you decide whether switching to a high-efficiency model is worth the price.
Gas in HVAC is misunderstood because most people think that their furnace's use of gas is the majority of the bill. Why is your gas bill so high? Maybe you have three kids who think that hot water is free.
When we talk to homeowners about that, it's an epiphany because what folks believe is that we're going to come in and change their entire gas bill. They think, 'If I get a high-efficiency furnace, will my gas bill go way down?' Our answer is, 'Probably not.'
The easiest way to figure out how much gas your furnace uses is to compare your gas bill in the summer vs. what it is in the winter. Whatever it is in the summer, that portion of the bill continues into the winter. That's water usage, cooking, that sort of thing. (If you have a gas fireplace, you'll need to account for that in your winter bill as well.)
Let's say your gas bill is $100. What is it during the summer? If it's $50, then we're talking only $50 in the winter. And part of that is going to be fees and taxes.
Can you blame it on your furnace? Maybe. But it may not be due to the efficiency of the furnace. It may be the way it's being used. If in the winter you like it at 75 degrees indoors, it doesn't matter how efficient your furnace is. You're going to be using a lot of gas.
1) Standard efficiency
2) High efficiency
High-efficiency furnaces have a secondary heat exchanger. The furnace creates heat, recycles what it doesn't use, and uses the waste in a secondary heat exchanger, then finally exhausts what is left.
Standard-efficiency models use the heat and exhaust the rest because they lack the second heat exchanger.
Functionally they will do the same thing; each can come equipped with a variable-speed blower, a two-speed, or a fixed speed. The difference is how many BTUs you need to do the job.
The best high-efficiency furnaces are up to 97% efficient, whereas a standard efficiency is 80%. In an 80% furnace, 80% of the heat is being used, while 20% is being exhausted as waste.
Read more: A Guide to High-Efficiency Furnaces
Efficiency is measured by the ability of the furnace to produce warm air that is being used to heat your home, versus how much is being exhausted as waste. AFUE stands for Annual Fuel Utilization Efficiency. It is a measure of furnace efficiency. AFUE uses percentages (up to 100%) that signify how much usable heat is produced by a furnace.
An 80% AFUE for a gas furnace, for example, means the furnace puts out 80 BTUs of useful heat for every 100 BTUs of natural gas it burns.
(BTU stands for British Thermal Unit; one BTU refers to the amount of energy that's required to increase the temperature of a pound of water by 1° F.)
No gas furnace is 100% efficient. The higher the number, the more efficient it is. To be considered high-efficiency, the rating needs to be between 90 and 97%.
The Trane XC95M, for instance, can get up to 97.3% efficiency. Those Trane models are going to be the most efficient to heat your house, not only by definition but also in actual savings. You will see a difference in your fuel bill when comparing an 80% furnace with a 97%.
Will you see a big difference in your bills between a 96% unit and a 97% one? No. But the lower-efficiency furnace will be cheaper to purchase.
Natural gas is cheap in Worthington, Dublin, and other areas of Central Ohio. If you have a high gas bill, you're either using gas a lot, which is your choice, or your house is not really tight. The windows may be single-paned and leaky. The insulation could be insufficient. You might have an uninsulated garage or crawl space. Maybe there's an addition that isn't being served by your ducts. No matter how much you heat that house, you're losing that heat constantly.
The efficiency of the house might be improved more by new windows and new insulation rather than investing in a high-efficiency furnace.
Here's what a new high-efficiency furnace will cost:
This includes installation and related fees. It does not include ductwork or ventilation modification or indoor air quality add-ons, which won't be a part of every installation.
And here's what a standard-efficiency unit runs:
If everything stays exactly the same except for your furnace's efficiency, we can do some math.
Let's say you spend $150 a month on heating and cooling, and your current furnace is 80% efficient. If you upgrade to a high-efficiency furnace that's 95% efficient, that translates to about $22.50 a month in savings (15% of $150) when your furnace is in use.
Let's not forget, however, that your furnace will be in use about half of the year, with heavy use during winter, moderate use in spring and fall, and just the blower in summer. (Your heat pump/AC depends on the blower to move cool air around the house. Your furnace will be using only electricity to run.)
So that $22.50 a month will drop according to the seasons when you're using less gas. Other factors include:
If you spend an extra $ on a high-efficiency furnace, and it will take 8-10 years to recoup that cost, is it worth it?
When we sit down with a homeowner who is thinking about a new furnace, we ask them if they feel that their gas bill is too high. If they say 'no,' recommending a standard-efficiency unit isn't going to be an issue.
If they do think their gas bill is too high, it's part of their comfort concerns, and we need to address it. We do have a partial solution to that problem: high efficiency. We can't promise them that their bill is going to go down by 50%, but we can offer a solution that will make their bill less burdensome.
Anybody who's getting a new system because their existing system is old, more than likely, their efficiency will increase. We will never be able to prove how much they saved in efficiency.
And some homeowners want to be as green as possible, regardless of the cost. In that case, we would recommend a high-efficiency unit.
Regular maintenance can help with costs. If the furnace is running the way that it should, it will certainly be more efficient. If it's clogged up with dust and pet dander, it will suffer. Everything will do its job better if the parts are clean and performing like they did when it was brand new.
A dirty filter will restrict the air that goes into the furnace. That makes the furnace work harder, with a poorer result. Changing the filter helps the furnace (and the heat pump/air conditioner) function better. We recommend changing the filter when it's due or simply when it's filthy.
Sizing will make a difference when it comes to efficiency. If the furnace is sized too small, it will run and run, and up goes the bill. Too big, your unit will short cycle, which means it starts and stops more often. That will burn more gas than it needs to, as well. And it will never heat properly.
For more information, please visit Hot Press Furnaces.
When a sales professional visits your home, they should perform a Manual J Load Calculation to determine the capacity needed in an HVAC system to heat and cool your home. The industry standards for these calculations are set by the Air Conditioning Contractors of America (ACCA). At Fire & Ice Heating and Air Conditioning, we always perform an ACCA-approved load calculation to ensure accurate sizing of your system.
This informs a homeowner of the capacity needed to service the home. The size of your house matters, but also things like the number and direction of the windows on the home, as well as dozens of other factors.
When we do a load calculation, we are concerned about comfort as well as creating a system that is running the way it's supposed to, to be as efficient as possible. We want that 80% furnace to get as close to 80% as possible.
RELATED: Sizing Your Air Conditioner, Heat Pump, and Furnace
The most important thing that we do is find the right size. If your current furnace is indeed the right size, then we can do some apples-to-apples comparisons. The thing in the basement - the furnace - is the last thing I worry about when I'm on a sales call - except for sizing. The windows, the insulation, the square footage, garages, attics, are more important. We're trying to find what your home needs, not what you have. You can get used to a mis-sized furnace that has a spotty service history with lousy ductwork. You live with it, and don't know that there's a better way until someone shows you something better.
Making an investment in HVAC, especially for something that will last for 15 years, is never an easy decision. Part of our job at Fire & Ice is to sell you the perfect piece of equipment to fit your unique home.
Another part of our job is to give you options. We do that by informing you of all your options at every step of your decision process. The more you know, the better the decision you'll be able to make.
Here are some more articles that you might find useful on your journey toward comfort:
HVAC Buyer's Guide
A Guide to High-Efficiency Furnaces
By Anne Fonda
So, your old furnace finally gave up during the latest Dallas, TX cold snap or East Coast arctic blast. Or maybe the latest furnace repair costs made your jaw drop and made buying a new furnace a more cost-effective move than paying for more repairs. Or maybe you read our blog on warning signs that it's time for furnace replacement and you came here next.
The bottom line is you're in the market for a new furnace for your home, and as with any big purchase, you're doing your homework. Smart move.
We'll focus on gas furnaces rather than electric furnaces or other types of furnaces since natural gas furnaces are more economical and more widely used ' and gas furnaces are in our area of expertise. Here are the top 6 things to consider when it comes time to buy a new furnace.
New furnaces are much more efficient than older furnaces. Annual fuel utilization efficiency (AFUE) ratings describe how well a furnace utilizes the fuel it burns to heat your home. An AFUE rating is listed as a percentage.
The percentage describes how much of the fuel goes directly to heating your home and how much is exhausted out of your home as flue gas. The higher the AFUE rating, the more efficient a furnace is, and the unit's carbon emissions are reduced when compared to a less efficient furnace.
Today's high-efficiency furnaces are condensing furnaces. They have AFUE ratings of 90 or higher and utilize two heat exchangers to more efficiently heat your home while reducing wasted fuel. More efficient furnaces cost more upfront but can save you money on operating costs for years to come ' 15 years or more, on average.
Trane furnaces typically last 20+ years and our heat exchangers have a 20-year registered limited warranty, while other parts have a 10-year registered limited warranty.
Modulating burners and variable-speed blowers make an efficient furnace even better, offering precise temperature control and peak efficiency.
Pro tip: Choose the most energy-efficient furnace you can afford for long-term savings.
A new furnace or HVAC system is only as good as the design and installation. An improperly sized system or improperly installed system won't give you the temperature control and comfort you deserve. That's why it's important to work with an HVAC company with years of experience in HVAC system sizing.
Proper sizing and system configuration take much more into account than square footage. An improperly sized system will waste energy, which is the last thing you want to do. You want to make sure your furnace has enough BTUs to comfortably heat your home, whether you're in Houston or Chicago.
Our HVAC experts say it may be OK to replace only the furnace if your air conditioner or heat pump is relatively new and compatible with the furnace you decide on. But if your cooling unit is as old or older than your furnace, you will want to plan on replacing the entire HVAC system at one time.
Installation will be more cost-effective that way, and the system components will work well together for maximum efficiency. Learn more about full system replacement in our HVAC replacement guide.
Your gas furnace replacement cost will depend on several factors. The same goes for AC/furnace replacement costs. Some of these factors include:
View our Pricing Guide for some national average price ranges for various units. The best way to find out the cost of furnace replacement or furnace and AC replacement is to contact HVAC professionals in your area directly.
Read product reviews for the HVAC products you're considering. If you're in the market for a Trane furnace, you can find the reviews at the bottom of each product page. You can also Google a model number or model name and read those reviews. What do people like about a certain product? What do they dislike, if anything?
Reading these reviews can help you ask some important questions when you get estimates.
Working with the right HVAC company will go a long way towards you being satisfied with your new furnace or HVAC system. You want an HVAC contractor who listens to you, answers your questions thoughtfully, and helps you make an informed choice.
But you also want more. You want someone you can trust to do the job right, including sizing the system and installing it, without cutting corners or 'eyeballing' it. If you are a new homeowner or new to the area and don't know who to call, read our blog on choosing the right HVAC contractor for some tips on finding an HVAC company you can rely on.
Find one or more Trane dealers near you to set up an in-home consultation. Ask as many questions as you can to make sure you know what goes into replacement furnace cost or air conditioner and furnace replacement cost.
While cost shouldn't be the sole factor you consider, we realize it is a concern for homeowners. Be sure to ask about any rebates or tax credits that can make a new furnace or HVAC system affordable. Ask about financing as well.
Anne Fonda, Content Writer
A Content Writer with Trane Technologies, Anne Fonda researches topics and writes for Trane® and associated residential HVAC brands. She works in collaboration with Trane Technologies subject matter experts, offering easy-to-understand, informative content on complex topics. Her goal is to help consumers make informed decisions on the products and services they need.
She has written for HVAC and other service provider websites for over 16 years. Before transitioning to web content writing, Anne had a 14-year stint as an award-winning journalist. She graduated cum laude from the University of Missouri-Columbia School of Journalism.
When she's not working, Anne enjoys playing word games, reading, gardening, spending time with family, and visiting gardens and museums.
Expert review by Kimberly Sexton, Senior Systems Engineer
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