Sky-high energy bills, diminishing resources and a healthy concern for our environment have brought a great deal of attention to the topic of home energy efficiency in recent years. Homeowners everywhere are struggling to spend less, use less and pollute less without giving up the warmth and comfort they’ve grown to cherish.

Almost 35 million homes in America are heated by natural gas–fired, forced-air heating systems. Unfortunately, nearly all of these households have been sending 30% or more of their energy dollars up the furnace flue and, in doing so, each has pumped up to 4 tons of carbon dioxide, the “greenhouse gas,” into the atmosphere every month. Most conventional forced-air furnaces operate at very low efficiencies—some taking advantage of only half the fuel they burn.

In an effort to curb this waste and pollution, the U.S. Department of Energy (DOE) instituted rigid new standards at the beginning of 1992 that required every new furnace to turn at least 78% of its fuel into heat. Manufacturers responded with models that meet and sometimes far surpass this.

The measurement for efficiency is called an Annual Fuel Utilization Efficiency (AFUE) rating. All furnaces now come posted with this rating, generally in the form of a yellow “Energy Guide” label. AFUE ratings run from the 78% minimum to the Carrier SXC’s 96.7%. Though most makers list their furnaces as “high efficiency,” the DOE sometimes refers to units with an AFUE higher than 90% as “high efficiency” and lower-AFUE models as “mid efficiency.”
With these high-efficiency products available, many homeowners are replacing their outdated furnaces. Replacement costs can run anywhere from $1,700 to $3,500, depending upon the complexity of installation.

High-efficiency models represent only about $500 to $1,000 more in material costs than mid-efficiency units—and some utilities offer rebates that cover much of the difference. The payback period depends on the price of the system, local energy costs, climate, and the difference in efficiency between the old and new furnaces.

Yellow Energy Guides list estimated annual operating costs for furnaces given specific conditions; they’re meant for comparison only. When buying a system, you should ask your dealer to help you figure actual payback.

A new, high-efficiency furnace can save you money in the long run, so if your furnace needs replacement, it pays to get a new, high-efficiency model. But does your furnace need replacement? Do you want a new furnace because your present one isn’t heating properly or is making too much noise? You may find that simple repairs are all that’s needed. If you’re considering a new furnace to eliminate problems with an older one, be sure to first read through Furnace Repairs & Care—this information just might save you a bundle.