Author:
Revised:
March 10th, 2023
We’ve met with thousands of homeowners who ask one big question: Is buying a high-efficiency furnace worth it?
While we would love to provide a simple answer, the truth is that there’s very little about the heating and cooling business that is simply “yes” or “no.”
So the answer, “It depends” might be accurate, but it doesn’t help you much. Fortunately, the answer doesn’t stop there.
Then we ask our questions. How much do you want to spend? How green do you want your HVAC system to be? What is the efficiency of your current furnace? Are you happy with it? Does its noise bother you? How long do you plan on staying in your home? Is your gas bill too high?
And so on.
Switching from your current furnace to a high-efficiency one makes a great deal of sense, and can save money for many homeowners. For others, it’s not worth it. This article will run down a list of the pros and cons to help you decide.
What Is a High Efficiency Furnace?
First, let’s talk about the two main furnace types: electric and gas.
There are also propane and oil furnaces still out there, but for our purposes, they both fall into the “gas” category.
An electric furnace is technically high-efficiency, even though we don’t call it that. The reason it’s high-efficiency is that every cent you put into getting the air hot is being used. There is no waste to exhaust away from the furnace.
The problem with electric furnaces is the way they create heat. They have heat strips that work a bit like the inside of a toaster. The heated coils glow red hot. Then the blower fan will push air over them and through the ductwork.
A toaster is great for bread, but it takes a lot of energy to make those coils hot. Ditto for an electric furnace. If you use it a lot, you’ll definitely notice it on your electric bill. It’s not cost-effective.
If you’re using a heat pump as your primary heating source, an electric furnace can be the supplemental or “emergency” heat. It’s still not efficient, but it will bail out the heat pump when it can’t provide enough heat due to a low outside temperature.
Dual fuel is worth considering. That’s where instead of an air conditioner, you’ll install a high-efficiency heat pump outside. You can use the natural gas furnace as the “auxiliary” or “emergency heat” only, and let the electric heat pump do as much heating as possible.
How Furnace Efficiency Is Measured
Furnace efficiency is measured in AFUE, which stands for Annual Fuel Utilization Efficiency. It’s measured in percentages and is a calculation of how much heat generated by a furnace goes directly toward heating your home.
Think of it this way: If you spend a dollar to heat your home, and you have an 80% efficiency furnace, 20 cents of that dollar will be vented from your home rather than going toward heating it.
Keep in mind that while AFUE ratings are a good way to compare efficiencies, calculating actual operating costs for a new heating system or an older furnace is a bit more complicated. This is due to a number of variables, including the differences in pricing for natural gas and heating oil.
Currently, the minimum standard for new furnaces and boilers is 80% AFUE.
Standard-Efficiency vs. High-Efficiency Gas Furnaces
To be considered high efficiency, the rating needs to be 90% or above. The higher the number, the more efficient it is. No gas furnace is 100% efficient.
If it’s more efficient, it won’t have to produce as much heat to do the same job.
The best high-efficiency furnaces are up to 98% efficient, whereas a standard efficiency one is 80%. In an 80% furnace, 80% of the heat is being used, while 20% is being exhausted as waste. The exhaust gas typically contains about 20–30% carbon monoxide (CO) and about 2–6% hydrogen (H2), about 45–60% nitrogen (N2), and 20–25% carbon dioxide (CO2).
What Is the Environmental Impact of Gas Furnaces?
If you want to be as green as possible, then a high efficient furnace makes sense. The greenest of the green would be a heat pump outdoors supplemented by an air handler indoors. They both would be powered by solar.
High-efficient furnaces produce less waste because they have a secondary heat exchanger, meaning that they can be Energy Star certified, which offers rebates.
Earning the Energy Star means the products meet energy-efficiency guidelines set by the U.S. Environmental Protection Agency (EPA). By choosing Energy Star-certified heating and cooling equipment and taking steps to optimize its performance, you can enhance the comfort of your home while saving energy.
Saving energy helps you save money on utility bills and protect the climate by helping prevent harmful carbon pollution and reducing other greenhouse gasses. You may also qualify for a rebate.
Will a High-Efficiency Furnace Save Me Money in the Long Run?
It depends. In theory, yes. If you switch from 80% to 96%, you are saving 16 cents on the dollar, and if it lasts 20 years, you can see your investment pay off.
But in practice, there are many other factors that come into play.
A lot depends on what your temperature preference is. For instance, if you’re going with a high efficiency furnace, but you set your thermostat at 66 degrees in the winter, your furnace won’t run as much. It’s going to take several years to recover the initial investment.
If you set it at 75 degrees, then it won’t take quite as much time. The more you use a high-efficiency unit, the more savings it will produce. But this is partially offset by a paradox: the more you use it, the more natural gas you will burn.
This is Columbus, OH, where we do have cold winters. If the outside temperature seldom gets below freezing, your heat pump can do most of the heating, and you don’t have to use your furnace that much. Heat pumps are effective most of the year, but tend to stop producing “hot heat” at 40 degrees or below. When it gets that cold, the emergency heat, provided by the furnace, will take over.
If you set the thermostat to 75 while it’s freezing out, your furnace will do a lot of work. You’ll probably do well savings-wise compared to your neighbor with their standard-efficiency furnace if they also have a 75-degree setting.
But the exact savings are impossible to calculate. That’s why no one should quote exactly what you’re going to save because they have no idea. Savings can be demonstrated over time - years, not months - but the exact amount will vary.
It Can Communicate with Smart Thermostats
If you’re thinking about a smart home, you might want to start with a high-efficiency furnace. You will also need a thermometer that has smart functions. (Check with an HVAC salesperson to see if you might have to upgrade your outdoor unit with smart technology.)
A smart home with a high-efficiency furnace as its backbone can provide comfort and energy savings all through the winter. It can turn down the heat automatically when the house is empty, then turn it back up even before you get home, making it possible to have a warm house at all hours while saving energy. It can even learn your schedule, so you don’t have to program it.
Read more: HVAC Thermostats 101: Installation, Features & Controls
Three Reasons Not to Buy a High-Efficiency Furnace
- If you are planning on moving from your home soon, it doesn’t make sense to buy a high-end furnace. You can save some money in the short run, but the amount you save will not offset the higher cost if you’re moving out soon.
- If you’re budget-conscious, this is definitely not the furnace for you. Carrier’s top-of-the-line is a 59MN7 is an investment of between $8,100 and $8,900. Whereas a Carrier standard-efficiency furnace can run from $4,100 and $4,900. That’s a huge difference. Saving some money on your gas bill will not make up that difference if you’re pinching pennies.
- If you are pleased with your current low-efficiency furnace and have no overarching comfort concerns, there’s little need to upgrade. Concerns include hot and cold spots in the home, a gas bill that you feel is exorbitantly high, and a furnace that you feel is turning on and off too often.
Read more: A Guide to High-Efficiency Furnaces (Savings, Environmental Impact)
A High-Efficiency Furnace Doesn’t Mean Better Comfort
Some people just want high efficiency because it sounds fancier. But it may not solve the concerns you have about your current furnace. If you have cold spots in your home in the winter, a high-efficiency furnace isn’t going to solve that. Efficiency doesn’t matter when it comes to comfort.
The furnace’s blower motor can come in three different configurations: single-speed, two-speed, and variable-speed. If you are frustrated with hot and cold spots, talk to an HVAC professional about a variable-speed motor or a furnace with multiple heat stages, which do the best job of mixing the air in your house.
Does the Cost Outweigh the Benefits?
We always ask, “Does your gas bill bother you enough to invest in a high-efficiency furnace that will do better than your current standard-efficiency furnace?” The answer usually depends on the price of gas. If there’s a sudden spike, obviously operating your gas furnace will cost more.
And if the customer’s gas bills are high, the first thing I would do is look at their windows or insulation. It might also come from faulty ductwork. There’s heat loss somewhere. Something is making that furnace work harder than it should.
Maybe a lifestyle adjustment can make your existing, standard-efficiency furnace feel brand new. Another layer of insulation in the attic, some well-placed weatherstripping, or even simply replacing your furnace’s filter can make a difference.
Only you can answer the question of whether a jump to a high-efficiency furnace is worth it. We hope this article has given you some factors things to consider.
Read more: How Much Does a New Furnace Replacement Cost?
Buying an Energy Efficient Furnace in Columbus, Ohio
Any HVAC salesperson who is pushing you to invest in a furnace you’re not comfortable with is out to make a quick buck. You deserve better than that. You are the expert on your home and should be allowed to make a decision about your furnace purchase without pressure.
Let’s have a conversation and see which furnace is the right fit.
