Furnace Replacement

Spend $1,145 now and SAVE $240 each year... ROI = 21%


Heating and Cooling accounts for about 35% - 45% of a home's energy cost. When replacing your furnace, choose a model with a minimum of 95 AFUE.

The Annualized Fuel Utilization Efficiency, is the ratio of the total useful heat your gas furnace delivers to your house to the heat value of the fuel it consumes. In addition to High Efficiency look for Variable Speed and also consider Two Stage systems which let you save more money by setting up multiple zones. This way you can have separate thermostats and control daytime living and nigh time sleeping zones to maximize comfort without excessively heating or cooling part soft the house unnecessarily.

The ROI Calculation is based on saving $75 a month over 4 months of the heating season. There are also tax credits that can make this item considerably cheaper.

TAX CREDITS: The American Recovery and Reinvestment Act (ARRA) provides you with a 30% Tax Credit for Furnace Replacements that are put into service by the end of 2010. This tax credit item is only for existing homes, not new construction, that is your primary residence and it includes the cost of materials and installation. p>


  1. The tax credit cap is $1,500 on collective home improvement elements other than Geo-Thermal 'Ground Source' Heat Pumps, Solar Hot Water Heating, Solar Photovoltaic, and Fuel Cell systems - which each have no cap and are eligible through 2016.
  2. The tax credits for exterior 'weatherization' improvements like windows, doors and insulation do not include the cost of installation!
  3. If you reach the $1,500 cap in 2009, you are not eligible for additional tax credits in 2010.

Choose a Furnace Replacement that meets these criteria to get the Tax Credit; and check products carefully, because in many cases an ENERGY STAR certification does not necessarily meet the tax credit requirements below:
Natural Gas or Propane Furnace:
• Must have an Annual Fuel Utilization Efficiency (AFUE) greater than or equal to 95.
Oil Furnace:
• Must have an Annual Fuel Utilization Efficiency (AFUE) of more than 90.
Gas, Propane, or Oil Hot Water Boiler:
• Must have an Annual Fuel Utilization Efficiency (AFUE) of more than 90.
Note: For furnaces and boilers, not all Energy Star appliances qualify for the tax credit. For a partial list of qualifying products go to the Air Conditioning, Heating, and Refrigeration Institute (AHRI).

Out the door with the old, and in with the new high-efficiency furnace.


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