Choosing an electric furnace is a significant investment for any American homeowner. Understanding the true cost of an electric furnace—including purchase, installation, and operation—can help you make an informed decision tailored to your specific needs and budget. This article breaks down average prices, key cost factors, and tips for maximizing value on your electric furnace installation.
| Factor | Average Cost Range | Notes |
|---|---|---|
| Electric Furnace Unit | $700–$3,000 | Depends on size and brand |
| Installation Labor | $1,000–$2,500 | Varies by home and region |
| Total Installed Cost | $1,700–$5,500 | Includes both unit & labor |
| Annual Operating Cost | $1,000–$2,500+ | Varies by climate and usage |
What Is An Electric Furnace?
An electric furnace is a home heating system that uses electricity to heat air. The air is then distributed through the home’s ductwork. Unlike gas furnaces, electric models don’t burn fuel directly, which means there’s no combustion—and no risk of carbon monoxide leaks. They provide reliable, clean heat and are often a popular choice in areas without natural gas access.
How Much Does An Electric Furnace Cost?
The cost of an electric furnace can range considerably. On average, a new electric furnace unit costs between $700 and $3,000. However, this price does not include the expenses associated with installation, labor, or required upgrades to electrical systems.
When all expenses are factored in, including labor and necessary electrical work, the total installed cost typically falls between $1,700 and $5,500. Costs can go higher for premium models or for complex installations, such as in older homes or in homes where significant electrical upgrades are needed.
Electric Furnace Cost By Size And Capacity
| Furnace Size (kW) | Average Cost (Unit Only) | Home Square Footage |
|---|---|---|
| 10–15 kW | $700–$1,200 | 600–1,200 sq. ft. |
| 16–20 kW | $1,000–$1,700 | 1,200–1,800 sq. ft. |
| 21–25 kW | $1,300–$2,500 | 1,800–2,500 sq. ft. |
| 26–34 kW | $1,900–$3,000 | 2,500+ sq. ft. |
The size of the furnace you need depends on the square footage of your home and your local climate. Oversizing or undersizing can impact both comfort and energy efficiency.
Electric Furnace Installation Costs
Installation costs for electric furnaces generally range from $1,000 to $2,500. These costs cover labor, basic materials, and setup. Installation may be more expensive if:
- Your home needs electrical upgrades (e.g., breaker panel or wiring)
- Your ductwork needs repair or replacement
- Access to the installation site is restricted
Some contractors may charge higher rates in regions with higher labor costs. Requesting multiple quotes from licensed HVAC companies is recommended to ensure a competitive rate and proper installation quality.
Additional Costs And Considerations
When budgeting for an electric furnace, consider potential additional costs beyond the basic unit and installation:
- Electrical panel upgrades: Newer or larger units may require enhanced electrical capacity ($500–$2,000+).
- Ductwork modifications or replacement: If ducts are leaky, old, or incompatible, expect extra costs ($1,000–$5,000).
- Thermostat upgrades: Smart thermostat installation may cost $150–$400.
- Permits and inspection fees: Local regulations may add another $100–$500.
- Old furnace removal and disposal: Removing a previous system can run $200–$600.
It’s smart to account for these potential expenses when budgeting for your electric furnace installation.
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Factors That Affect Electric Furnace Pricing
Several factors can impact the total price you’ll pay for a new electric furnace:
- Brand: Premium brands command higher prices for advanced features and longer warranties.
- Furnace size/capacity: Larger units serving bigger homes cost more.
- Energy efficiency ratings: More efficient furnaces may have a higher upfront cost, but can save on monthly bills.
- Included features: Two-stage heating, variable-speed blowers, and smart controls add to the price.
- Installation complexity: Retrofits or homes needing electrical work increase project costs.
- Geographic location: Prices vary by region, labor markets, and local code requirements.
Comparing these variables is crucial when soliciting quotes from different contractors.
Electric Furnace Vs. Gas Furnace: Cost Comparison
| Cost Factor | Electric Furnace | Gas Furnace |
|---|---|---|
| Unit Price | $700–$3,000 | $1,000–$4,000 |
| Installed Cost | $1,700–$5,500 | $2,500–$7,500 |
| Annual Operation | $1,000–$2,500+ | $500–$1,000+ |
| Maintenance | Low | Medium–High |
| Expected Lifespan | 15–20 years | 15–25 years |
Electric furnaces usually have lower installation costs but higher operating costs than gas models, due to the price of electricity compared to natural gas. They’re ideal where gas is unavailable or for all-electric homes.
Operating Costs: What To Expect
The operating cost of an electric furnace is directly tied to electricity rates in your area, and the heating demands of your home. On average, American homeowners pay $1,000 to $2,500 or more annually to heat with electricity. This is usually higher than the operational cost of natural gas furnaces, particularly in colder climates or regions with higher electric rates.
To estimate your costs, multiply your local cost per kilowatt-hour (kWh) by the total kWh your furnace uses per season. In some areas, rebates or special utility rates can help offset operation costs.
How To Choose The Right Electric Furnace
When selecting an electric furnace, consider the following:
- Home size and insulation: Ensure correct sizing for efficiency and comfort.
- Climate zone: Colder regions may require larger, more powerful units.
- System features: Look for variable-speed blowers, advanced controls, or smart home compatibility as desired.
- Warranty: Longer warranty periods offer added peace of mind.
- Installer reputation: Choose certified, experienced HVAC professionals for installation.
Always request a professional load calculation (Manual J) to right-size your system for maximum comfort and efficiency.
Popular Electric Furnace Brands And Models
Several well-known brands offer high-quality electric furnaces in the U.S. Some top options include:
- Trane: Known for durability and efficiency with models like TM9E series.
- Goodman: A popular choice for budget-friendly, reliable heat.
- Lennox: Offers high-efficiency models such as the EL280E series.
- Rheem: Recognized for robust warranties and quality components.
- York: Delivers dependable performance for homes of all sizes.
Most manufacturers offer a range of sizes and efficiency ratings. Professional installation by a certified contractor ensures warranty coverage and system lifespan.
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Average Lifespan Of An Electric Furnace
An electric furnace can last 15 to 20 years with proper maintenance. They generally require less maintenance than gas models, since there are no burners or venting systems to clean. Regular filter changes and annual checkups help maintain performance and efficiency.
Maintenance Tips For Electric Furnaces
Maintaining your electric furnace is straightforward, but critical for performance. Key tips include:
- Change air filters every 1–3 months
- Schedule annual professional inspections for electrical safety and performance
- Keep the area around the furnace clear of clutter and obstructions
- Check thermostat batteries and settings regularly
Low ongoing maintenance is one of the main advantages of electric heating compared to oil or gas systems.
Electric Furnace Pros And Cons
| Pros | Cons |
|---|---|
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Energy Efficiency And Electric Furnaces
Electric furnaces are almost 100% efficient at converting electricity into heat, as they lose little energy to exhaust or venting. However, because electricity is generally more expensive than gas, this efficiency does not always translate to savings. If your area uses clean or renewable power, electric furnaces can be a sustainable choice for home heating.
For those seeking the most energy-efficient electric heating, consider pairing your furnace with a modern insulating package or investing in a heat pump system for milder climates.
Government Incentives And Utility Rebates
Some states and local utilities offer rebates or incentives for upgrading to new, energy-efficient electric furnaces. While these rebates are more common for heat pumps and other high-efficiency equipment, it’s worth checking with your utility provider and browsing resources like the Database of State Incentives for Renewables & Efficiency (DSIRE).
These incentives can help offset the upfront cost of upgrading, particularly if your current heating system is outdated or inefficient.
How To Find And Hire A Quality Installer
Proper installation is essential for safe, reliable furnace operation. To choose the best professional:
- Verify licenses and insurance to protect your home
- Read online reviews and ask for referrals
- Request detailed, written quotes outlining all costs and included warranties
- Ask about their experience with electric furnace models and brands
- Check for membership in industry organizations like Air Conditioning Contractors of America (ACCA)
Collecting several quotes gives you the best chance of getting a fair price and professional results.
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Electric Furnace FAQs
- Is it cheaper to run an electric furnace or a heat pump?—Heat pumps are typically more efficient in milder climates and cost less to operate than electric furnaces.
- Can electric furnaces be used in cold climates?—They can, but may need to be paired with supplemental heat or suffer higher operating costs in freezing regions.
- Do electric furnaces require venting?—No, which makes installation easier and safer compared to gas models.
- How quickly can an electric furnace be installed?—Most installations take one day, unless significant electrical or ductwork upgrades are needed.
Getting The Most Value From Your Electric Furnace
To maximize your investment:
- Right-size your furnace for your home’s needs
- Upgrade insulation and seal air leaks
- Install a programmable thermostat to reduce unnecessary heating
- Maintain your furnace for peak efficiency and lifespan
Being informed leads to lower costs and increased comfort for many years with your electric furnace.