How Much Should I Pay for a Furnace Installation?

How much a furnace installation ought to cost you depends on various factors — what kind of heating system you have, the type of fuel it uses, even where you live in your state can affect your price. According to Home Advisor, the average national cost to install a gas furnace is $1,248–$2,094. Fees range from about $199 to over $1,700. There are also electric furnaces available, which would considerably bring down the costs associated with installation. The average national cost for a professional to install an electric furnace is around $971–$2,077, and prices range from just under $100 to $1,550.

Getting a furnace installation done is more accessible than doing it yourself, and you’ll get a better warranty if it’s installed by a professional–9 years for gas and electric furnaces and one year on parts for both. And while some people think buying an energy-efficient furnace costs more upfront, keep in mind that savings from lower monthly utility bills will offset the initial cost over time.

According to Home Advisor, these are the average costs of heating system installations:

Oil-fired furnace ($1,202–$2,113)

Natural gas ($1,248; $2,094)

Hot water baseboard ($769; $911 )

Electric ($971; $2,077)

Heat pump ($1,153; $1,941)

Propane gas furnace ($959; $1,529)

Some older furnaces can be repaired at less expense than replacement. For example: If your system is more than 20 years old and you’re having problems such as incomplete heating, or it’s constantly turning on and off, a fix might cost around $500. You are replacing an old system with a new high efficiency one–$3,000 to $5,000 depending on the manufacturer.

When researching hiring someone to install a furnace in my house (I did not hire anyone because of how much they were charging), I had generally found that the prices for both gas and electric ranged from free (for a service call) to $300-600.

I did not get any estimates because my furnace needed to be replaced (and no one was willing to do that). I think the only people who would charge more than $500 would be contractors or companies specializing in furnaces.

The installation of a central air conditioning system is usually not included with heating.

There are different furnaces, but they can be grouped into four general categories: forced-air gas, electricity (including heat pumps), oil, and propane. The prices above are typical; the cost will vary accordingly if you buy an unusual style.

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