The Average Cost of a Natural Gas Furnace

Costs

• Gas furnace installation is not a job for the do-it-yourselfer, since improper use of the fuel can produce devastating explosions. According to Cost Owl, gas furnaces cost around $2,500 to $5,000, with an average of $3,000. This includes both the price of the unit and the labor to install it. Basic installation alone costs from $700 to $1,000, though complexities such as additional ductwork or inconvenient prices can raise the cost.

Size

• A major factor in the cost of a natural gas furnace is its capacity. One that is too small cannot heat a home correctly. Contractors tend to install furnaces that are larger to avoid cold spaces. Unfortunately, units that are too large cycle on and off more frequently, improperly wearing down their components and using up more energy. Large units may also need bigger ducts, which require more expense. Contractors can determine the correct size for a furnace by using a standard calculation developed by the Air Conditioning Contractors of America. This procedure accounts for climate as well as the house size and construction.

Units

• The capacity of natural gas furnaces is expressed in British Thermal Units or BTUs. All things being equal, units with larger capacities cost more than those with smaller ones. For example, as of 2011, Home Depot shows a small unit with 25,000 BTUs at $400. The AC Outlet has a 45,000 BTU model at $859. Younits shows a 92,000 BTU model at $1,169. Prices do not include installation.

AFUE

• Another consideration in the cost of a gas furnace is its annual fuel utilization efficiency, or AFUE, which is expressed as a percentage. Gas furnaces made in the 1970s or earlier had an AFUE of 65 percent or less. The lowest percentage now allowed by energy ordinances is 78 percent. The best energy rating goes as high as 97 percent. While a more efficient gas furnace saves money in the long run, it is generally more expensive. According to Consumer Reports, a furnace with 90 percent AFUE can cost over $1,000 more than a similarly-sized unit with 80 percent AFUE.

Labor

• Installation costs vary across the country primarily due to the wages of professional installers, which depend on supply and demand, and an area’s cost of living. According to the Bureau of Labor Statistics, the mean hourly wages of heating installers were $21.57. Most worked for building equipment contractors, where earnings ran a mean $20.96 per hour. The cities with the highest pay for the profession were Champaign, Illinois, at a mean $36.15 per hour, and Napa, California, at a mean $33.40 per hour. Rates were higher in rural areas, such as in southwest Alaska, at a mean $38.87 per hour.