Is a High Efficiency Furnace Worth It?

What Is Considered High Efficiency?

The term “high efficiency” isn’t arbitrary; it has a concrete definition in the heating industry. A furnace is deemed high efficiency when it achieves an Annual Fuel Utilization Efficiency (AFUE) rating of 90% or higher. An AFUE of 90% means that 90% of the energy in the fuel becomes heat, with 10% escaping. The AFUE rating measures furnace efficiency and reflects the percentage of fuel a furnace converts into useful heating energy during a heating season. This efficiency rating is measured using the AFUE standard, which allows consumers to compare how effectively different furnaces convert fuel into heat. For more context on replacing older models, review our guide on signs it’s time to replace.

Is investing in a high-efficiency furnace worth it?

• Greater long-term savings: Despite a higher upfront cost, energy-efficient units reduce heating bills substantially over time.
• Superior efficiency: High-efficiency furnaces boast AFUE ratings of 90% or more, converting more fuel to heat and minimizing waste.
• Environmental advantage: They burn less fuel, lowering greenhouse gas output and contributing to a smaller carbon footprint.
• Potential rebates available: Many local and federal programs offer incentives that help offset initial costs.

Best for cold climates: These furnaces deliver significant benefits in regions with prolonged heating needs.

Conventional electric furnaces, oil furnaces, and propane or natural gas furnaces, on the other hand, often fall into the 80% AFUE range, meaning they lose a significant portion of the fuel’s energy potential. High efficiency furnaces, which can achieve AFUE ratings between 90% to 99%, are designed to maximize energy conversion, making them a compelling choice for those looking to reduce their carbon footprint and save money on heating costs. Efficiency ratings are displayed on product labels and manufacturer websites, making it easier to compare different models and select the best option for your needs. Furnaces and boilers must display their AFUE rating, as required by the Federal Trade Commission. New furnaces often feature advanced efficiency ratings and updated features, which can lead to significant savings over time.

Heating equipment efficiency is a crucial factor because it directly impacts your energy bills. A higher efficiency gas furnace or other energy efficient models will waste less energy versus a less efficient model, resulting in lower energy costs. When considering furnace costs, furnace replacement costs, and the overall cost of upgrading—including installation and long-term savings—high efficiency models can offer substantial financial benefits. The national average cost for replacing a gas furnace in the U.S. for a 1,600 to 2,000-square-foot home is about $7,000. Homeowners can generally expect a new furnace to cost anywhere between $3,800 and $10,000. Additionally, rebates, tax credits, and ENERGY STAR® certification can help reduce the overall cost of purchasing and installing a high efficiency furnace, making these upgrades even more affordable. This is why many homeowners are eager to explore the benefits of high efficiency furnaces when considering furnace installation. Regular maintenance also plays a vital role learn why with this article on why furnace tune-ups matter.

Energy Efficient Features That Enhance Comfort

Now that we’ve defined high efficiency, let’s explore the features that set these energy efficient furnaces apart and explain how they enhance comfort. Most high-efficiency furnaces are condensing-type furnaces which include two heat exchangers. Recent upgrades and upgrading existing systems with advanced features can further improve both comfort and efficiency. Homeowners can also access the latest features and up-to-date information through local dealers or professional consultations when considering high efficiency furnaces:

Two-Stage or Modulating Burners

A high efficiency gas furnace often comes equipped with two-stage or modulating burners. A standard single-stage furnace always runs at full capacity until the desired temperature is reached, potentially leading to noticeable temperature fluctuations. A two-stage furnace has burners that offer two heating levels: a lower and a higher stage, providing a more stable indoor temperature and better efficiency.

A modulating furnace takes precision to the next level and continually adjusts its heat output to produce more or less heat. The operation of two-stage and modulating burners is regulated by advanced controls and the thermostat, which work together to maintain consistent comfort and efficient performance. They do so to match the exact heating demand, maximizing comfort and minimizing energy wastage. While modulating gas furnace burners come with higher initial costs over two-stage and standard models, their long-term utility bill savings benefits and superior heating performance often justify the investment in a high efficiency gas furnace for homeowners.

Variable-Speed Blowers

A variable-speed blower in a heating and cooling system is a key component that operates by adjusting its fan speed to match the specific heating demands of your home. Unlike older furnaces with single-speed blowers that run at a constant rate, a variable-speed fan and blower can slow down or speed up, distributing air more precisely and efficiently to keep your whole house comfortable. For optimal performance, it is important that the ducts are clean, properly sealed, and well-connected to ensure efficient air distribution throughout the system.

Variable-speed blower units are available in different sizes to match various home sizes and heating needs, ensuring you select the right capacity for your space. When installing or having a variable-speed blower installed as part of a furnace upgrade, proper setup by a qualified professional is essential for maximizing efficiency and system performance.

This dynamic control results in less noise and more consistent heating and contributes significantly to energy efficiency. By running at a lower speed when less heating is needed, variable-speed blowers consume less electricity, reducing energy consumption and lowering utility bills. Eligible homeowners may also qualify for 25C tax credit savings when installing a high efficiency system equipped with these advanced features.

Additionally, the even and gentle airflow they provide helps eliminate cold spots, enhances indoor air quality by filtering and circulating air more effectively, and maintains a more comfortable and balanced temperature throughout your home. If your current furnace lacks these features, it may be time to consider when to replace your furnace for better comfort and efficiency. This makes variable-speed blowers a valuable addition to any furnace, offering both increased energy efficiency and enhanced overall home comfort.

Condensing Furnace

A furnace’s heat exchanger is pivotal in the heating process, transferring heat from fuel combustion to the circulating air in your home. In traditional furnaces, the primary heat exchanger accomplishes this by passing combustion gasses through metal tubes, heating the air as it flows over these surfaces. A condensing furnace can offer higher efficiencies as it has a secondary heat exchanger made of advanced materials like stainless steel. Like condensing furnaces, a high-efficiency boiler also relies on advanced heat exchangers and proper venting for optimal performance.

The addition of a secondary heat exchanger in high efficiency gas furnaces and oil furnaces is a technological leap that minimizes energy wastage while maximizing heat utilization. This secondary heat exchanger captures additional heat from the combustion process of the condensing furnace, using condensing technology to extract heating energy from the previously wasted combustion gasses. Proper venting is essential to safely remove combustion gases from the home, preventing the intrusion or spillage of harmful byproducts such as carbon monoxide.

This not only leads to cost savings but also enhances home comfort. The process helps improve indoor air quality by removing moisture and combustion byproducts from the exhaust gasses, enhancing both comfort and safety in your home.

Sealed Combustion

High efficiency furnaces typically have advanced technology like sealed combustion systems, which draw outdoor air for combustion rather than using indoor air like standard models. A sealed system optimizes combustion efficiency in an oil or natural gas furnace because it ensures a consistent supply of oxygen to the burner, resulting in more complete fuel combustion. Modern high-efficiency systems can convert nearly all the fuel to useful heat for your home. This efficient furnace design means less fuel waste, lower heating costs, and a reduced environmental footprint.

Outdoor conditions, such as strong wind, can affect the performance of sealed combustion systems and venting by interfering with the natural draft and exhausting of combustion gases. Proper installation is important to mitigate these effects and ensure safe, efficient operation.

Sealed combustion prevents the furnace from using conditioned indoor air for combustion. This eliminates the possibility of drafts, prevents the introduction of potentially harmful combustion byproducts into your living space, and maintains a more consistent indoor temperature.

Furnace Size and Selection: Why It Matters

Choosing the right furnace size is one of the most important steps in ensuring your home stays warm and your heating system operates efficiently. A properly sized furnace is not just about matching the unit to your home’s square footage—it’s about optimizing comfort, energy use, and long-term costs.

If your furnace is too large for your space, it will cycle on and off more frequently, leading to uneven heating, increased wear on system components, and higher energy costs. On the other hand, a furnace that’s too small will struggle to keep up with your heating needs, running constantly and still leaving cold spots throughout your home. Both scenarios can shorten the lifespan of your system and lead to unnecessary repair bills.

A properly sized furnace ensures that your heating system delivers consistent warmth without wasting energy. This means lower utility costs, fewer maintenance issues, and a more comfortable living environment. Professional HVAC technicians use detailed calculations—taking into account your home’s insulation, number of windows, square footage, and even local weather conditions—to determine the ideal furnace size for your needs.

When considering a new furnace, don’t just look at the price tag or the latest features. Make sure your new system is sized correctly for your home. This attention to furnace size will help you maximize efficiency, minimize costs, and enjoy reliable heating for years to come. If you’re unsure about the right furnace size for your home, consult with a trusted heating professional to ensure your investment pays off in comfort and savings.

The Bottom Line: High Efficiency Furnaces Are Worth It

High efficiency gas furnaces and oil furnaces are undoubtedly worth considering for your home. They provide many benefits, from lower heating bills and reduced environmental impact to enhanced comfort and convenience.

High-efficiency units typically have lower emissions compared to models in the 80% efficiency range. While the initial cost of a high efficiency furnace may be higher than that of a standard model, these systems can cut energy use or bills by as much as half, leading to significant savings in the long run. Replacement of an old furnace with a properly size furnace is crucial for maximizing efficiency and comfort. Furnaces generally last 15 to 20 years with proper maintenance. Upgrading to a high efficiency furnace is a smart investment for the future, offering both immediate and lasting benefits. If your current unit is struggling, we also offer expert reliable furnace repair solutions to restore performance and extend its life.

If you’re interested in reaping the rewards of a high efficiency furnace, contact Atlas Heating & Air Conditioning. Our experts can help you select and install the perfect high efficiency furnace tailored to your home’s specific needs. 

Frequently Asked Questions

Question: What are the main benefits of a high-efficiency furnace?
Answer: High-efficiency furnaces reduce heating costs, lower environmental impact, and enhance comfort with more consistent, reliable performance—making them a cost-effective upgrade over time. 

Question: Are the energy and cost savings from a high-efficiency furnace significant?
Answer: Yes. These furnaces often have AFUE ratings of 90% or higher, which can reduce energy bills by 30% or more and potentially save homeowners hundreds of dollars annually. 

Question: What are the downsides to choosing a high-efficiency furnace?
Answer: The upfront cost is higher—typically 25% to 40% more than standard models—and installation may require additional infrastructure like condensate drains and sealed combustion venting, increasing complexity. 

Question: In which situations might a high-efficiency furnace be most worth it?
Answer: Especially in colder climates or for homeowners planning to stay long-term, the energy savings and comfort gains can offset the upfront costs. Incentives and rebates further improve the investment.