Want to know how a high-efficiency furnace works? It’s all about condensing operation.
We’ve already established that the cost difference between a high-efficiency system and a standard-efficiency system can be made up over time through efficient operation (particularly if you live in an area that needs a lot of heating power). But, just how does a high-efficiency furnace work to save you money on heating costs?
We’ve already discussed basic furnace operation. Now, here’s the difference between standard-efficiency and high-efficiency models.
In gas furnaces, there is a component called a heat exchanger. This is where natural or propane gas is converted into heat energy and byproducts produced from the combustion process are vented through the flue system. Well, in a condensing gas furnace, there is more than one heat exchanger. The secondary heat exchanger removes more heat from the combustion gases, which then condense to produce water vapor. Then, cooled flue gas is vented out of the flue system. This is why units produced today can reach staggering efficiency levels – nearly 100% AFUE.
Did you already know this? If you’re interested in having a high-efficiency furnace installed in your home, talk to your local heating and air conditioning specialist.
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Just how much can you save with a high-efficiency furnace?
Are you trying to figure out the best way to cut back on heating expenses during the winter? Although there are little things you can do (turning the thermostat down, investing in weather stripping, closing blinds, etc.) the change that is going to make the biggest impact is upgrading from an old furnace to a new high-efficiency model.
Older models, from 10 or so years ago, did not have to meet the same efficiency requirements that systems manufactured today have to meet. So, not only will the efficiency of your old system have decreased (through normal use), it may have started off less efficient than even standard-efficiency systems today. That’s why you can save money with even a standard-efficiency system.
High-efficiency furnaces can dramatically reduce utility bills because heating and cooling costs comprise most of your utility expenses (nearly 50% according to the Department of Energy). Say you currently have a furnace operating at 70% AFUE and you upgrade to a 95% AFUE model. That’s an increase in efficiency of approximately 26%. Say your heating bill runs approximately $100 a month on average currently; that’s a savings of around $26 a month or $312 a year.
Plus, there are additional home comfort systems that can help you save even more money. Like pairing your high-efficiency gas furnace with a digital programmable thermostat or a zoning system.
Have you talked to your local heating and air dealer about your high-efficiency furnace options? If you have a high-efficiency furnace, have you seen savings on your heating bills?
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7 things you should know about high-efficiency gas furnaces
If you’re thinking about getting a new furnace, it is well worth your time to investigate your high-efficiency furnace options. Not only are new, high-efficiency furnaces more technologically advanced than that old clunker in your basement, but upgrading to high-efficiency is your best bet when it comes to cutting utility bill expenses. After all, heating your home (during the winter months) is going to make up the biggest chunk of your utility costs.
Here are a few quick facts about high-efficiency furnaces that you should know before you settle on a system.
- Most high-efficiency furnaces (over 90% AFUE) are condensing. This means that they can extract additional heat from water vapor that would normally be wasted up your flue. That’s what makes them so efficient.
- HVAC costs make up about half of your utility bill expenses. This means that if you can see savings here, you can see BIG savings overall.
- Some high-efficiency furnaces are nearly 100% efficient. This means that nearly all of the energy that goes into your gas furnace is returned in heating power.

- AFUE (or annual fuel utilization efficiency) is the standard measurement of efficiency of gas furnaces. The higher the AFUE percentage, the more efficient the unit.
- Minimum efficiency standards have been raised dramatically over the past 10 years. That means that the old furnace in your basement could be upwards of 10% less efficient that even standard-efficiency units today.
- Standard furnaces, as part of a split-system, aren’t the only way you can enjoy gas furnace heating power. Gas packs and packaged dual-fuel systems, can also contain all of the components of a high-efficiency gas furnace.
- Natural gas furnaces are often more efficient than other furnaces (like oil and electric). That’s because natural gas tends to be the cheaper utility in most areas.
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Heat Transfer Vs. Original Heat : Determining Heat Pump Savings
Over the past weeks, we’ve talked about the different systems you can use to heat your home. But, do you want to know the big thing that sets them apart?
It’s heat transfer and heat creation.
Here’s a very basic breakdown of what these two methods entail.
Heat Transfer: When the system uses refrigerant to transfer heat using the outdoor air.
Heat Creation: When the system uses energy sources (like natural gas or electricity) to create warm air.
So, which systems use heat creation?
Well… a lot of systems use heat creation. Think of your air handler, a space heater and gas furnaces. These methods tend to use more energy. That’s why, if you have an air handler with heat strips, or are using room or space heaters to heat your space, your electric bills can seem SKY HIGH. Gas furnaces also use heat creation, but are generally considered a less expensive way to heat your home. That’s because natural gas rates are normally lower than electricity rates in most areas.All right, so which system uses heat transfer?
Well… that would be our friend the heat pump. Interestingly enough, it’s also the way an air conditioner works. Your heat pump uses refrigerant to transfer heat between one air stream and another. In winter, it transfers heat from the outdoor air to refrigerant. Then, the refrigerant transfers that heat into the indoor air.How does this translate to heat pump savings?
Heat transfer generally requires less energy than heat creation (to a certain temperature mark). Which is why, if you live in an area that doesn’t see frequent temperatures below freezing, you can see savings when choosing a heat pump paired with an air handler for your year-round heating and cooling method. It’s also why, in other areas, a dual-fuel system is such a good idea. Instead of using an electric back-up heating method during the fall and spring, your heat pump can take over the job.
Make sure you keep this in mind while you are designing your new heating and air system with your local HVAC contractor. They’ll be able to tell you which method is the best for your home based on your local weather conditions!
Do you use a heat pump for year-round heating and cooling?
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There are pros and cons of using a heat pump in winter
Are you currently weighing the costs and benefits of a heat pump? Well, an important thing to keep in mind is how your heat pump will fair during the colder months. In some areas, a heat pump paired with an air handler may make more sense, while in others your heat pump may need to be paired with a powerful back-up heating method (like a gas furnace).
There are pros and cons of using a heat pump in your year-round heating and cooling method. Here are some things you should keep in mind when having a heat pump installed in your home.
- Pro: No gas line, no problem! Generally, if you aren’t going to pair your air conditioner with an electric furnace (or air handler) you are going to go with a gas furnace – if we’re talking about split systems. If you don’t currently have a gas line leading to your home, a gas furnace may e out of the question financially.
- Con: Power and cost. If you live somewhere that sees temperatures below freezing frequently, you may want to consider pairing your heat pump with a gas furnace. At a certain point, it may no longer be cost effective to pull heat out of the outdoor air. Of course, there’s never going to be a point in time where there is NO heat to extract from the outdoor air. But, it may not be economically feasible.
- Pro: More efficient than other electric heating methods. Heat transfer and heat creation are two very different things. Heat transfer is what a heat pump uses, and it is the more efficient heating method under certain climate conditions.

- Con: Time to heat your home. Because there is less heat in the outdoor air during the winter, it can take longer for your home to reach your set temperature.
- Pro: Comes in a wide range of options. Luckily, heat pumps come in a range of efficiency, sizes and setups so you can ensure that the system you have installed in your home is the ideal option. And, if a heat pump with an air handler doesn’t feel like it’s going to cut it during the winter, you can always pair your heat pump with a gas furnace.
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There are many benefits of choosing a dual fuel heat pump system
Still stuck when it comes to picking the right heating and air conditioning equipment? Well, today, we’ll break down another type of system for you – the dual-fuel heat pump system.
So, what exactly is a dual-fuel heat pump system setup? Well, it includes two essential parts – a heat pump and a gas furnace (for more information about heat pumps and gas furnaces, visit our previous articles). Basically, it is the best of both worlds – it can cool and heat your home with electricity to a certain point and then switch over to gas heat for extra power. Dual-fuel systems come in both packaged and split varieties.
Of course, you can always get an air conditioner and gas furnace paired to get both heating and cooling (using gas and electricity, respectively). But, what about those times in between?
Here are some big benefits of choosing a dual-fuel system.
- Versatility. With a dual-fuel system, you have heating options. You can heat with electricity OR gas. Is it cool, but not cold enough to warrant gas heat? You can STILL use electric heat. Is it too cold outside? Switch over to gas to reduce bills and increase comfort!
- Electric heat TRANSFER. We’ll get into this more later, but heat pumps employ heat transfer (as opposed to creating original heat). This will use less electricity.
- Cost effective heat source. Unlike all electric or all gas heating methods, you don’t have the option of using the most efficient heat source for the season. In deep winter, it’s much more cost effective to heat a home with natural gas (particularly if temperatures are dropping below freezing frequently).

- Variety. These units come in both packaged and split varieties. The split varieties can come in a mix of efficiencies to suit every budget. So, no matter what your home situation is, you can find the right system for you.
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Electric vs. Gas Furnaces: A Heating System Throwdown
The choices available to homeowners, in terms of heating equipment, are continually and expanding! And, while it can be overwhelming when you are purchasing a new furnace, that’s a GOOD thing. There are models that suit every budget, every comfort demand and fuel type.
Two such types of furnaces are electric and gas furnaces. And, there are pros and cons to both types.
Electric Furnaces:
This category can be interpreted a couple of different ways. But, for our purposes, we’re going to say that electric furnaces are air handlers. You can pair an air handler with your air conditioner or heat pump. It contains your air distribution system, indoor coil and sometimes heat strips that provide additional heating power. These heat strips are powered by electricity and create original heat.- Pros:
- Don’t have to use natural gas
- Can be all you need to heat/cool your home year round (in some areas)
- Cons:
- Create original heat (don’t transfer heat)
- Can raise electric bills
- May have to strain to reach heating demand (in some areas), particularly if you are pairing an air handler with an air conditioner
- Where to Install
- Live in an area where the power supplied by a gas furnace isn’t necessary (e.g. the South, Southern Texas, Florida, etc.)
- Don’t currently have a natural gas line running to your home
- Electricity is the cheaper utility in your area
Gas Furnaces:
This is what most people typically associate with heating systems. These are natural gas-powered heating systems that contain your air distribution system and create original heat. A natural gas furnace can be paired with your split-system air conditioner or heat pump (just like an air handler).
- Pros:
- Provide powerful heat
- Natural gas is often the less expensive utility
- Pairs nicely with both an air conditioner and a heat pump to provide year-round heating and cooling
- Cons:
- Uses natural gas lines (if you don’t have them, it can be costly and infeasible to have them installed)
- Must have a carbon monoxide detector running in your home
- Will generally have to purchase an additional indoor coil
- Where to Install
- Currently have a gas line running to your home
- Need the power supplied by a gas furnace
- Natural gas is the cheaper utility in your area
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Need to make a repair to your gas furnace? Remember: an ounce of prevention is worth a pound of cure.
Uh oh! Does your gas furnace need a repair? Whether it’s because your furnace is old or wasn’t installed properly – a gas furnace repair can do a real number on your budget. Unexpected expenses are never fun, but they do happen. That’s why you should try to plan ahead and weigh average furnace repair cost when making decisions during installation.
The average furnace repair cost for 2015 was $267 dollars. Now, that may not seem like much now, but imagine having to make those repairs year-after-year due to poor installation?
If you want to avoid paying furnace repair costs, there are some things you can do to head-off repairs and expand lifespan.
- Hire a quality HVAC contractor. Don’t just go with the professional who gives you the lowest quote. A lot of times, contractors who take the time to maintain a quality business have higher overhead costs, which may be reflected in the quote they give you. But, after a repair or two due to poor installation, you will have more than paid for the higher quality contractor. Check our online reviews and schedule a consultation before you hire.
- Keep up with preventative maintenance. A maintenance appointment is going to be easier to work into your budget. It won’t be unexpected and you will know that it’s coming. This is the best way to catch minor problems BEFORE peak seasons and extend the lifespan of your unit.
- Change your furnace filter regularly. A dirty filter can actually block airflow and cause damage to your unit. Buy a $20 filter now and save on hundreds of dollars of repair costs in the future.
- Don’t buy from online auction sites. When you buy from unauthorized sources or auction sites, there is no guarantee that the unit is high quality AND it will likely not be covered by any warranty. Not only that, but most quality contractors are not going to go near a system that was purchased in a back-alley way.
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Need to know how much gas heating costs per month? We’ll help you out.
We’re heading into the peak heating season! That means that your gas furnace, as well as your budget, may be struggling to keep up with new demands. For budgeting purposes, it’s important to have an idea of what your gas heating costs are per month, but that can be tricky.
It’s hard to give an exact figure for how much gas heating costs per month. BUT, we can help you figure out what goes into determining those costs. Prices for gas heating vary according to how many appliances you have in your home (that require gas), the size of your home, the efficiency of your gas furnace, local utility rates in your area and more…that’s a lot of variables.
Here’s a breakdown on how each factor will increase, or lower, your monthly gas heating expenses.
- Size of your home. Like your electricity and water bill, the size of your home is going to affect how much your gas bills run. If you have a bigger home, there is more square footage to heat during the winter.
- Having a big family. This can go one of two ways… If you have more people they could be fiddling with the thermostat more (different preferences for different bodies). This can drive up utility costs. BUT, it can also be a perk. More people in a home actually can make a home feel warmer.
- Having a small family. Again, this can go one of two ways. If you have a programmable thermostat, you can create a schedule that results in lower temperatures during the day while people are out of the house (it’s easier to coordinate schedules when there are fewer people). But, fewer people in the house will make it feel cooler.
- Utility rates. Prices for natural gas will vary according to the provider in your area. Make sure you contact your local providers to get an idea of the rates in your area. They may even have this available on their website.

- Efficiency of your gas furnace. While high-efficiency gas furnaces are more expensive to install, they can actually help you save money each month on your utility bills. That’s definitely a BIG perk.
- Age of your gas furnace. The older your system, the less efficient it may be. The less efficient your gas furnace is, the higher your utility bills are going to be. That’s why it can be a good idea to replace those old units.
- Did you have your unit maintained? Fall preventative furnace maintenance can help catch problems that could be raising your bills. Make sure you schedule maintenance with your local HVAC dealer every fall to make sure your unit is performing at peak levels.
- Furnace filters. A dirty air filter can actually lower the efficiency of your system. Make sure you are regularly changing your furnace filter.
- Weatherizing for winter. Make sure that every year, you weatherize your home. This includes reinsulating problem areas, using weather stripping to block off any air leaks around windows and doors, and more! Air leaks can be a major source of heating cost spikes in winter.
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How much does it cost to install a furnace? Let us break it down for you.
So, you’ve figured out how a gas furnace works and think it’s right up your alley… But, just how much does it cost to install a furnace?
Well, there are many different things you need to keep in mind when installing a new furnace. It goes beyond the cost of the cabinet in your basement, attic or closet. Every part of the heating and cooling installation process – including contractor and additions – needs to be at the forefront of your mind when looking at quotes for a system.
Here are the different things you’ll have to pay for when you decide to have a gas furnace installed in your home.
- Contractor costs. The quest for a new gas furnace will always start with some research and the contractor search. When you hire a contractor you are paying for quality. Oftentimes, contractors that give you a higher quote have higher overhead costs that come with running and maintaining a quality business. Skimping on labor costs can result in paying more money down the road as a result of shoddy installation.
- Equipment costs. The price of the system will vary depending on which type of equipment you decide to have installed. Remember, additional perks on your system are more than just flashy upgrades – they can really improve performance and help you save in the long run. For example, a single-stage system may cost less than a two-stage system. But, with a two-stage system, you will get better energy efficiency, more even temperatures and it can help you save money. So, make sure you discuss all of your options with the professional HVAC contractor you hire.
- Additional equipment. A gas furnace is more than the cabinet. There are other components, like thermostats and indoor air quality, that are critical to performance. For example, if your home is getting a heating system for the first time, your home will need ductwork. Just remember, with any additions or improvements you make, you’ll get better comfort and can enjoy additional savings down the road.

- Additional considerations. Make sure you get several quotes from qualified contractors before you settle on a professional or a system. Just keep the above factors in mind. Just because a contractor offers you a lower quote doesn’t mean they are the best company to go with. Do your homework and STAY INFORMED.


