How much does Electric furnace installation cost?
Based on 2,145 real quotes from businesses in United States.
$680
TYPICAL
$3000
Yelp calculates estimated costs by gathering and analyzing real quotes provided to consumers by businesses on Yelp. Actual costs may vary.
Key takeaways
Electric furnaces cost less upfront than natural gas furnaces, but operational costs are usually higher
For a larger home or colder climate, a new heating system will be more expensive
Installing new ductwork leads to significant additional costs
For some consumers, there are good reasons to choose an electric furnace, even though most don’t heat as quickly or affordably as gas furnaces. First, the upfront cost of installing an electric furnace is lower, in part because the equipment itself is less expensive. Also, an electric furnace doesn’t need a gas line or exhaust flue, which is required by gas furnaces to vent carbon monoxide gas.
Gas furnaces lose a percentage of heat up the flue, while electric furnaces convert 100% of the electricity they use into heat, as measured by an Annual Fuel Utilization Efficiency (AFUE) rating. Unfortunately, that energy efficiency doesn’t usually translate into savings. Because the amount of gas needed to heat your home costs less than the equivalent amount of electricity, your utility bills will still be lower with propane or natural gas—especially if you have a newer, high-efficiency furnace type.
If you decide an electric furnace is right for you, you’ll probably need a pro to install it. “Because of the high-voltage electrical wiring and difficult work involved, electric furnace installation is not a DIY project that homeowners should attempt,” says home-improvement expert Don Vandervort of HomeTips.com. “Always contact an HVAC professional for heating and air conditioning installation.”
In this guide, you’ll learn about the typical cost of electric furnace installation.
Total electric furnace installation costs
The national average cost to purchase and install a new electric furnace is $1,800–4,900, including materials and labor. Installing a new electric furnace can take 5–10 hours of work, so labor costs amount to 20–40% of the total project expense.
These costs assume that air ducts are already in place to distribute heat throughout your home. If not, new furnace costs can rise to $4,500–15,000+ when including new ductwork.
If you have an electric-heat furnace that isn’t working right but doesn’t need to be replaced, furnace repair costs average $125–600.
A heating and air conditioning (HVAC) pro can visit your home to discuss your options, along with the unit costs involved with new furnace installation in your home. A new HVAC system with an electric furnace will also likely require the help of an experienced electrician, at a rate of $50–100 per hour for 2–4 hours, to hook up the new furnace. Some electricians might charge a minimum service fee of $75–150, which is deducted from the overall bill if they do the work.
Cost factors
These issues can affect the overall costs of electric furnace installation.
Furnace size. An electric furnace’s heating capacity, measured in BTUs (British Thermal Units), corresponds to its cost. The more square footage it can heat, the higher the furnace price. You’ll typically pay $900–2,500 to install a 40,000–60,000-BTU electric furnace, which can heat a 1,500-square-foot house. A 2,500-square-foot home size might require a 80,000–100,000-BTU furnace, at a total cost of $1,900–3,700.
Where you live. You may also need a larger, more expensive type of furnace if you live in a colder climate zone, because it will have to work harder to keep your home heated.
Electrical upgrades. If your home requires an electrical panel upgrade to accommodate the new furnace, expect to pay an electrician an average of $1,300–3,000 to increase your panel’s capacity from 100 to 200 amps. Significant changes to a home’s wiring almost always require a permit from your city.
Accessibility. HVAC contractors may increase labor costs by 10–25% if the installation area is difficult to reach, crowded with other equipment, or has factors that limit their ability to work unhindered.
Replacement similarity. If you’re replacing an old furnace unit with a new one, choose a similar-size furnace that will fit the same location and easily connect to existing HVAC-system ductwork. This can reduce furnace replacement costs by 5–10%.
Warranties. Read the fine print on the manufacturer warranty when purchasing a new electric furnace. Most companies offer 1-year coverage for parts (like blowers and heating elements), and optional extended coverage. High-end furnace brands (including Lennox, Carrier, and Trane) may cost more, but typically come with longer warranties (at least 10 years, in most cases).
FAQs
How much does it cost to put in an electric furnace?
The average cost to purchase and install an electric furnace ranges from $1,800–4,900, with labor making up 20–40% of the total price. Installations will cost more if you’re replacing your current unit with one of a different size, or if your home needs electrical upgrades to accommodate the new appliance.
Are electric furnaces expensive to run?
Electric furnaces typically have lower upfront costs than gas furnaces. However, in most of the US, your ongoing energy bills will be higher if you heat your home with electricity rather than natural gas.
How often should an electric furnace be replaced?
Today’s electric furnaces are capable of lasting as long as 20–30 years, which is longer than most gas furnaces. You should consider installing a new furnace if your old unit needs frequent or costly repairs, or if it begins approaching the end of its projected lifespan.
Find an electric furnace installation professional in your area.
How are Yelp’s cost estimates calculated?
Every year, millions of consumers request quotes on Yelp from top-rated local professionals. We combine these real-life project quotes with data from the millions of people who interact with businesses on Yelp today. We use our years of expertise to create handy local cost guides that you can trust. Get accurate estimates on projects in your area, from roofing to moving.
How are Yelp’s cost estimates calculated?
Every year, millions of consumers request quotes on Yelp from top-rated local professionals. We combine these real-life project quotes with data from the millions of people who interact with businesses on Yelp today. We use our years of expertise to create handy local cost guides that you can trust. Get accurate estimates on projects in your area, from roofing to moving.
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