One of the main ways that energy-efficient furnaces save you money is by reducing your monthly utility bills. Older furnaces tend to be less efficient, meaning they consume more energy to produce the same amount of heat. This translates to higher energy bills month after month.
Remember, a new high-efficiency furnace will use less natural gas than older units with lower efficiency ratings (AFUE).
Make a Cost-Effective Purchase: Save $1,094 or More by Buying ENERGY STAR. FEMP has calculated that the required ENERGY STAR-qualified residential furnace saves money if priced no more than $1,094 (in 2021 dollars) above the less efficient model. The best available model saves up to $1,329.
Aging Systems Can Lead to Higher Gas Bills
As heating systems like furnaces, boilers, or water heaters age, older systems lose efficiency and work harder to maintain a comfortable temperature, which means they consume more gas. This is especially true if your furnace or water heater is nearing the end of its life.
Older furnaces were not designed with energy efficiency in mind, which means they consume more fuel to produce the same amount of heat. Whether your furnace runs on natural gas, oil, or electricity, an inefficient furnace will result in increased fuel consumption and, consequently, higher utility bills.
Furnaces 20 years old or older become increasingly inefficient over time and can crack and leak, putting you and your family in danger. If your furnace is between 16 and 20 years old and constantly breaking down, then you should strongly consider having it replaced.
One of the main ways that energy-efficient furnaces save you money is by reducing your monthly utility bills. Older furnaces tend to be less efficient, meaning they consume more energy to produce the same amount of heat.
What Uses The Most Gas in a House? According to the U.S. Energy Information Administration (EIA), the majority of natural gas used in homes is for space heating, which includes both air and water. But whether homes use natural gas or not depends on the type of water heater and central heating system it has.
Different heating systems are going to impact different energy bills. If you have a heat pump, it's going to increase your electricity bill, whereas if you have a gas furnace, it's going to impact your gas bill. The type of system can also determine how energy efficient it is.
For people taking a proactive approach, doing a furnace replacement during the “shoulder seasons” of spring and autumn may offer lower prices, shorter lead times, and a better selection of products and service appointment availability.
Standard homeowners insurance policies will cover furnace repair or replacement if damage occurs due to a covered cause. Homeowners who want protection for non-covered issues, such as mechanical problems, may wish to consider a home warranty or an extended warranty on the appliance itself.
The good news is that as long as the existing ductwork in your home is in tip-top condition and doesn't require a repair or replacement, the furnace installation should be completed within a day. On average, it takes about four to 10 hours to wrap up a furnace install, depending on the type and size of the unit.
While a 95% efficient furnace will come at a higher upfront cost than an 80% furnace, the savings you will recoup in energy usage will soon offset that and continue to save you money compared to a baseline, standard efficiency heater.
Understanding Total Costs
Gas Furnace: $3,000 – $6,000. Electric Furnace: $2,500 – $5,000. Oil Furnace: $4,000 – $8,000.
Consistently high bills, or high bills in the summer when heating costs drop for most households, can often be attributed to high gas supply rates, older, inefficient appliances, a need to better maintain or service your gas appliances, window and door drafts, heat loss through the attic or chimney, or opportunities to ...
Speeding or making frequent stops and starts can also be culprits of poor gas mileage. The Department of Energy estimates that aggressive driving can lower gas mileage by 15 to 30 percent at highway speeds and 10 to 40 percent in stop-and-go traffic. Meanwhile, idling wastes six billion gallons of fuel each year.
How to Tell if Your Dryer Is Gas or Electric. Electric dryers have a four-prong plug that goes into a high-voltage outlet, while gas dryers have a three-prong plug and a gas line that connects to a gas valve.
If your bill is more expensive than normal, it could be due to inflation or seasonal changes. Consumers typically use more gas during winter, especially in colder climates. Your bill may also be high because your home is large and takes a greater amount of gas to heat, or because it uses energy inefficiently.
Negotiating with utility providers requires a proactive approach. Contact your provider and express your interest in discussing your current plan or exploring available options. Be polite, patient, and persistent throughout the process.
The lower U.S. gasoline prices are primarily a result of lower crude oil prices, as well as decreasing gasoline consumption in 2026 because of increasing fleetwide fuel economy.
Construction has been improved: Today's furnaces are better constructed, with lighter materials and more energy-efficient engines. Heat transmission from combustion gasses to air is easier using heat exchangers. Manufacturers are always coming up with new methods to construct furnaces that use less energy.
Cost Savings
According to the Department of Energy, homeowners can save an average of 15% on heating costs by replacing an old furnace with a newer, high-efficiency model. Sometimes, homeowners can save up to 30% on energy bills.
A standard policy typically won't cover the cost to replace your furnace if there was a mechanical problem, but you may be able to add an equipment breakdown endorsement for an additional cost that may provide coverage.