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Furnace Installation

Furnace Installation near you

A central furnace burns natural gas, propane or oil, or heats electric elements, warms air across a heat exchanger and pushes it through ducts to registers in every room. It is the way most of the United States is heated: EIA's Residential Energy Consumption Survey finds central warm-air furnaces the most common space heating equipment in American homes, across every type of housing.

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This type of work often has to be done by a licensed or certified trade. Ask to see licences and proof of insurance before work starts.
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Installing one is less about the cabinet in the basement than about everything it connects to. A furnace installation touches the gas line, the flue or sidewall vent, the supply and return ductwork, the electrical circuit and the thermostat, and on a high-efficiency model it adds a condensate drain that the old furnace never needed. The decisions that matter are made before the equipment is ordered: how much heat the house actually loses, how efficient the furnace should be for your climate, and whether the existing venting and ducts can be reused or have to change.

On LokalMatch you describe the installation once, including your ZIP code, the fuel, the age of the house and what is there now, and HVAC contractors covering your area get in touch with you. Pros pay for the requests they receive. LokalMatch does not perform the installation, does not set prices, and does not vet, rank or recommend any contractor, so checking a state license and comparing what each quote actually includes is still your job.

Furnace types in US homes: natural gas, propane, oil, electric and manufactured-housing units

The fuel a house already has usually decides the furnace, because the meter, tank or electrical service is the expensive part to change. What varies within a fuel is how the furnace burns and vents, and that is what determines whether the installation is a straight swap or a larger job.

  • Natural gas furnace: the most common installation in the country, connected to a gas meter and a vent, and the category the Department of Energy's newest efficiency standard is aimed at.
  • Propane furnace: mechanically close to natural gas but fed from an on-site tank; converting between the two is done with the manufacturer's listed conversion kit, never by field improvisation.
  • Oil furnace: still common in parts of the Northeast, where EIA notes heating oil is primarily used, and the installation includes the burner, nozzle, filter and the storage tank and lines.
  • Electric furnace: resistance heat elements with no burner, no flue and no gas piping, but a much heavier electrical demand that can require a service upgrade.
  • Manufactured-home furnace: a sealed-combustion unit listed specifically for mobile and manufactured housing, which a standard residential furnace cannot substitute for.
  • Weatherized or packaged unit: heating and cooling in one cabinet installed outdoors on a slab or roof, common in the South and Southwest where houses sit on slabs and have no basement.

AFUE, condensing furnaces and the 95 percent standard coming in 2028

Furnaces are rated by AFUE, annual fuel utilization efficiency, which expresses how much of the fuel's energy becomes usable heat in the home over a heating season rather than leaving through the vent. ENERGY STAR sets its bar above the federal floor and splits it by region: a certified gas furnace needs a rating of 95 percent AFUE or greater in the US South and 97 percent AFUE or greater in the US North, a certified oil furnace needs 87 percent AFUE or greater, and either one must also have air leakage of 2.0 percent or less.

The federal floor itself is moving. The Department of Energy last updated the furnace standard in 2007, and on December 18, 2023 it finalized an amended standard requiring non-weatherized gas furnaces and gas furnaces used in mobile homes to reach an annual fuel utilization efficiency of at least 95 percent. Manufacturers must comply on and after December 18, 2028. DOE describes that level as readily achievable by condensing furnaces, which use a secondary heat exchanger to capture heat from the exhaust gases that a conventional furnace sends up the flue. Separately, DOE determined in 2024 that the standards for electric furnaces, oil furnaces and weatherized gas furnaces did not need to be amended.

That has a practical consequence on installation day. Because a condensing furnace pulls so much heat out of its exhaust, the flue gas is cool enough to vent through plastic pipe out a sidewall, and the water that condenses out of it is acidic and needs a drain. If your old furnace shared a masonry chimney with a water heater, moving the furnace off that chimney leaves the water heater venting alone into a flue sized for two appliances, and the installer has to confirm the remaining appliance still vents properly. Ask how that is being handled before the work starts, not after.

What a furnace installation involves, from heat load calculation to startup readings

A good installation starts with a measurement of the house, not of the old furnace. DOE's guidance for federal buyers makes the point bluntly: an efficient furnace will not save energy or money if it is not properly installed, and it directs buyers to require installation in line with the ANSI/ACCA HVAC Quality Installation Specification, which exists precisely to address oversizing and duct leakage. Square footage, insulation levels, window area, air tightness and the local design temperature drive the answer. Copying the capacity of a furnace installed decades ago simply carries forward whatever was wrong then.

The install itself runs in a predictable order: gas and power off, the old unit disconnected and removed, the new furnace set and leveled, sheet metal transitions made to the existing plenum and return, gas piping connected and leak-tested, the vent run and terminated at the correct clearances, the condensate drain piped and trapped on a high-efficiency model, the electrical circuit and disconnect made up, and the thermostat wired and configured. Duct sealing and any return-air correction are best done while the equipment is out of the way rather than as a later visit.

Commissioning is the part homeowners never see and should ask about anyway. The technician should verify gas pressure, measure the temperature rise across the heat exchanger and confirm it falls inside the range printed on the nameplate, check external static pressure to see whether the ducts can actually move the air the blower is trying to push, and test the safety controls. Ask for those startup numbers in writing, along with the model and serial numbers on the invoice. They are the baseline a future technician will compare against.

Combustion air, venting and carbon monoxide safety with a new furnace

Any appliance that burns fuel can produce carbon monoxide when it is damaged, poorly vented or short of combustion air. The Consumer Product Safety Commission reports that more than 200 people a year die in the United States from unintentional non-fire carbon monoxide poisoning associated with consumer products, and it urges a yearly professional inspection of all fuel-burning home heating systems, covering furnaces, boilers, fireplaces, wood stoves and water heaters along with the chimneys, flues and vents that serve them.

A sealed-combustion furnace takes its combustion air from outdoors through a dedicated pipe instead of from the room. DOE recommends that design for exactly this reason: it keeps indoor air out of the burner and reduces the risk of exhaust gases backdrafting into occupied space. If a new furnace is going into a tight utility closet, a finished basement or a space shared with a water heater and a dryer, combustion air is a question worth raising with the contractor at the quote stage.

  • Install CO alarms on every level of the home and outside the sleeping areas; CPSC says interconnected alarms are best, because when one sounds they all sound.
  • Know the symptoms CPSC lists: headache, dizziness, weakness, nausea, vomiting, sleepiness and confusion.
  • If an alarm sounds or you suspect CO poisoning, get outside to fresh air first and then call 911; do not search for the source while people are still inside.
  • If you smell gas, leave the house and call the gas utility's emergency line from outside or from a neighbor's.
  • Never run a portable generator indoors or in an attached garage during an outage; CPSC attributes more than 100 of those annual deaths to portable generators.
  • Ask the installer to show you the vent termination outside and where the condensate drains, so you can see if either is blocked or frozen later.

Mechanical permits and state HVAC licensing for a furnace installation

There is no national contractor license in the United States, and heating work is regulated state by state. In Texas, the Department of Licensing and Regulation states that contractors who install, repair or maintain systems related to air conditioning, refrigeration or heating must hold a TDLR license, and that an air conditioning and refrigeration company must employ a licensed ACR contractor at each permanent location. In California, the Contractors State License Board issues a C-20 Warm-Air Heating, Ventilating and Air-Conditioning Contractor classification for this work. Other states run heating under a mechanical or general contractor board, and some leave it to cities, so look up your own state's board and confirm the license before anyone starts.

Permits are usually a city matter and they vary more than people expect. Minneapolis states that most heating, air conditioning, ventilation, refrigeration and gas piping work requires a permit, issued to city-licensed mechanical and heating contractors, with on-site inspections after work begins. Seattle issues a mechanical permit for HVAC equipment and requires separate permits for gas piping, refrigeration and boiler pressure vessels, then requires you to schedule the inspection. Ask directly who is pulling the permit, whether its cost is inside the quote, and who meets the inspector.

Underneath the permit sits a model code adopted locally. The International Code Council reports that its International Residential Code is in use or adopted in 49 states, the District of Columbia, Guam, Puerto Rico and the US Virgin Islands, and notes that jurisdictions often amend a model code as they adopt it to reflect local practice and law. That is why a venting or clearance detail accepted in one city is corrected in the next one over. An unpermitted furnace also tends to resurface at resale, when an inspector or a buyer's agent asks for the paperwork that was never filed.

Tax credits, state Home Energy Rebates and utility incentives for a new furnace

The federal incentive most homeowners heard about was the Energy Efficient Home Improvement Credit under section 25C. The IRS describes it as equal to 30 percent of certain qualified expenses, with natural gas, propane and oil furnaces and hot water boilers qualifying when they meet the specified efficiency standards, for property placed in service on or after January 1, 2023 and before December 31, 2025, and it notes the credit terminates after 2025 and that items claimed for 2025 had to come from a qualified manufacturer with the manufacturer's identification number reported on the return. That window has closed, so check the IRS page for the credit's current status rather than assuming it still applies.

Two other channels are still worth working. The Inflation Reduction Act funded two Home Energy Rebates programs, the whole-home HOMES program and the electrification-focused HEEHR program; the Department of Energy provides the money and oversight while states, territories and Tribes run the programs, and DOE tells homeowners to contact their State or Territory Energy Office for status and eligibility, because the rebates are live only in some states. Locally, ENERGY STAR's Rebate Finder takes a ZIP code and returns rebates and special offers near you, and your own gas or electric utility's site is worth checking directly. Most of these programs require certified equipment and a licensed installer, and many require approval before the work is done, so confirm the rules before you sign anything.

Furnace warranties: registration deadlines, parts versus labor

A furnace carries two separate promises and homeowners routinely confuse them. The manufacturer warrants the parts, with the heat exchanger usually covered for far longer than everything else. The contractor warrants the labor, and that term is entirely theirs to set. A failed part under a parts warranty can still produce a bill for the visit, the diagnosis and the labor to install it, so ask what each one covers and for how long before you choose between quotes.

Read the warranty document that ships with the equipment rather than the brochure. Manufacturers commonly set a registration deadline measured in weeks from the installation date and shorten the coverage sharply if it passes, and many condition coverage on professional installation and on documented annual maintenance. Register the furnace yourself if the contractor does not, keep the invoice with the model and serial numbers, and file the startup readings and every service record with it.

Furnace Installation: frequently asked questions

How should a contractor decide what size furnace my home needs?

From a heat load calculation on the building: square footage, insulation, windows, air tightness, orientation and the local design temperature. DOE's purchasing guidance points buyers to the ANSI/ACCA HVAC Quality Installation Specification specifically because oversizing and duct leakage are the recurring problems. A contractor who sizes the new furnace by reading the badge on the old one is copying a decision nobody has checked in decades.

Does every new gas furnace have to be 95 percent AFUE now?

Not yet. DOE finalized that standard on December 18, 2023 for non-weatherized gas furnaces and gas furnaces used in mobile homes, and manufacturers must comply on and after December 18, 2028. It binds what manufacturers may build rather than what you must buy today. ENERGY STAR already sets higher marks: 97 percent AFUE or greater for a certified gas furnace in the US North and 95 percent or greater in the US South.

Do I need a permit to replace a furnace?

In most places yes, and it is issued locally. Minneapolis says most heating, air conditioning, ventilation, refrigeration and gas piping work requires a permit and inspections. Seattle issues a mechanical permit for HVAC equipment, with separate permits for gas piping and for boiler pressure vessels. Because cities amend the model codes they adopt, confirm the rule at your own building department and ask the contractor to pull the permit in their name.

Why does my new high-efficiency furnace have a plastic vent pipe and a drain?

Because it condenses. A condensing furnace runs the exhaust through a secondary heat exchanger and takes so much heat out of it that the flue gas leaves cool, which is what plastic vent pipe out a sidewall is for, and the water vapor in the exhaust turns to liquid that has to be drained. That drain can freeze or clog, so it is worth knowing where it runs.

How do I check that a heating contractor is licensed?

Start with your state, because there is no national license. Texas requires a TDLR license for contractors who install, repair or maintain heating, air conditioning or refrigeration systems, and requires an ACR company to employ a licensed contractor at each permanent location. California licenses this work through the CSLB's C-20 classification. Some states regulate heating through a mechanical board and a few leave it to cities, so check both state and city.

Sources

  1. ENERGY STAR: Furnaces Key Product Criteria
  2. US Department of Energy: Consumer Furnaces standards
  3. US Department of Energy: DOE Finalizes Energy Efficiency Standards for Residential Furnaces
  4. US Department of Energy FEMP: Purchasing Energy-Efficient Residential Furnaces
  5. CPSC: Home Heating Equipment and Carbon Monoxide
  6. CPSC: Carbon Monoxide Information Center
  7. Texas Department of Licensing and Regulation: Air Conditioning and Refrigeration Contractors
  8. California Contractors State License Board: Licensing Classifications
  9. City of Minneapolis: Mechanical and Heating Permits
  10. Seattle Department of Construction and Inspections: Mechanical Permit
  11. International Code Council: International Residential Code adoption map
  12. IRS: Energy Efficient Home Improvement Credit
  13. US Department of Energy: Home Energy Rebates Programs
  14. ENERGY STAR: Rebate Finder
  15. EIA Residential Energy Consumption Survey: Overview
  16. EIA: Use of energy in homes

Written by the LokalMatch editorial team. Last reviewed September 14, 2026. How we write and check our guides

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What affects the cost of furnace installation

Prices depend on the details of your project. We only publish price ranges when they’re backed by real LokalMatch quote data or reliable sources. Until then, here’s what usually changes the price:

  • Type of system and fuel source
  • Size and efficiency of the equipment
  • Condition of the existing ductwork and venting
  • Electrical or gas line changes
  • Access to the furnace room, attic or outdoor unit location
  • Removal and disposal of the old equipment
  • Emergency or after-hours service

How to compare HVAC contractors before you hire

  • Hire a technician who is licensed for heating, cooling and gas work in your area.
  • For a new system, ask for a load calculation for your home rather than a size based on the old unit.
  • Get written quotes that list the equipment, ductwork changes, removal of the old unit and any electrical work.
  • Ask how they handle service calls and repairs after installation, including in the middle of winter.
  • Compare the full scope of each quote, not only the equipment on it.

Questions to ask HVAC contractors before you hire

  • Are you licensed for this type of heating, cooling or gas work in my area?
  • How did you decide what size of system my home needs?
  • Does this installation need a permit, and will you take care of it?
  • What does the manufacturer's warranty cover, and what does your labour warranty cover?
  • Will you need to change the ductwork, venting or electrical to make this work?
  • Do you offer maintenance plans, and what do they include?
  • How quickly can you respond if the system stops working?

When to call a pro for furnace installation

  • If you smell gas, leave the home and call your gas utility's emergency line from outside.
  • If a carbon monoxide alarm goes off, get everyone outside and call emergency services.
  • No heat in cold weather, or a furnace that keeps shutting off
  • Unusual noises, burning smells or a big jump in energy use

Furnace installation permits and local rules

Some furnace installation work needs a permit or has to meet local bylaws. Rules vary by municipality, so ask your pro whether a permit is needed and who will apply for it — and check with your city or town if you’re unsure.

Permits and licensing

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