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5 Types of Furnaces for Your Home and Their Features

Angela Brown
Written by Angela Brown
Updated October 4, 2021
Woman reading comfortably under blanket
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Understanding the different types of furnaces will make it easier when it's time to make your purchase

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When the temperature drops, your furnace steps up to the plate to keep you toasty warm. But if you need to replace your trusty furnace, you have some options. There are five types of furnaces you can use to keep your home warm in the winter. Each type of furnace has benefits and disadvantages, and you’ll want to do some mental math to decide which option is best for your home.

1. Natural Gas

Natural gas furnaces are the most common type of furnace installed in homes in the United States. You’ll need access to a municipal gas line to use this type of furnace. The natural gas furnace is more expensive upfront but is often more affordable to operate long-term. 

One major drawback of a natural gas furnace is the potential for CO2 poisoning if the heater malfunctions. 

Natural gas furnace operation is straightforward:

  • Natural gas furnaces use a flame to heat an exchanger.

  • The exchanger transfers the heat to incoming air.

  • The furnace blows the air out through air ducts.

The average cost for a natural gas furnace is $1,700 to $9,700.

2. Electric Furnace

Electric furnaces are another popular option. Electric furnaces are more affordable to install, but cost more to operate over time. They work similarly to a gas furnace, except they use electricity to create heat.

  • Electric furnaces pull surrounding air into the system.

  • The furnace uses electricity to operate heating elements, which warm incoming air.

  • The furnace then pushes the warm air out through your air ducts.

The average cost for an electric furnace is $1,600 to $6,200.

3. Propane Furnace

Propane furnaces operate similar to natural gas furnaces, but they use propane instead of natural gas. Propane furnaces are less expensive than gas furnaces but also less efficient.

  • The propane furnace heats air by turning the liquid propane into a gas.

  • The gas moves across a heat exchange heating the air.

  • The heated air exits through air vents.

The average cost of a propane furnace is $1,800 to $6,000.

4. Oil Furnace

An oil furnace is a popular alternative to gas furnaces and electric furnaces. Oil furnaces can be more expensive with high oil prices and require more furnace maintenance than some other types. You’ll also need to keep your oil tank (which you’ll need to install) ready so you don’t run your furnace dry.  

An oil furnace uses a burn chamber to produce heat.

  • The fuel pump brings oil to the burner chamber, where the oil transforms into a mist.

  • This mist is then sprayed onto a burner.

  • The burner warms up and heats incoming air, which is then distributed through the duct system.

The average cost of an oil furnace is $2,500 to $6,000.

5. Wood Furnace

Wood furnace in family home
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Wood furnaces require fuel (wood) to create heat for the home. ​​​​​​

  • Wood furnaces use the heat from burning wood to warm your home.

  • Newer wood furnace models have a blower that helps distribute the heat through your air ducts.

You may be able to get a dual-source furnace that uses oil, gas, or kerosene as a backup. Wood furnaces can be very affordable. However, they are less efficient than other furnace options and require a little extra work. 

The average cost of a wood furnace is $2,600 to $12,500.

Alternative Heat Sources

In addition to traditional furnaces, there are alternative ways to heat your home. Some of the most popular options include solar heating, pellet stoves, and radiant under-floor heating. These alternative options can be used on their own or paired with a furnace heating system.

What Types of Furnaces Are Suitable for a House?

Replacing a furnace in a home is an expensive decision, especially since you only feel the results of your decision a few months out of the year. Not all furnaces are created equal, and you’ll want to do a bit of research to make sure you find the right one for your home. 

It’s important to note that if your gas furnace is more than 15 years old and your electric furnace is more than 20 years old, you may want to consider a replacement. Failure to replace an old furnace can be dangerous. Not only do you risk losing heat in the winter, but you could also face danger from carbon dioxide poisoning or fires.

Which Furnace Type Is the Best?

If you’re going to invest several thousand dollars in a heating system, you want to pick the type of furnace that will work best for your lifestyle.

Best for Energy Efficiency

Both the gas and electric furnace models can provide an efficient means of heating your home. While it takes less time for a gas furnace to heat your home than an electric furnace, many electric furnaces have very high energy efficiency ratings.

Best for the Budget

If you’re aiming for low cost, a wood furnace will likely be your most affordable option. However, wood-burning furnaces aren’t feasible for families who don’t live near a low-cost source of wood. 

The next most affordable option is an electric furnace, at least initially. Electric furnaces are less expensive to purchase and install. If you combine your electric furnace with solar panels, you could save a significant amount of money.

Best for Small Homes

If you have a small home, a radiant heating system (an electric heater) could give you a lot of value. Radiant heating systems are affordable and easy to install. If you only have a few rooms in your home, baseboard heating is also an affordable option. Propane gas furnaces would also work well in smaller houses.

Best for Large Homes

Gas furnaces are likely to work best in larger homes since they can heat the house faster than other furnace types.

Best for Temperate Climates

If you live in a warmer climate with fewer cool days, an electric furnace with a heat pump is your best option. You’ll save a lot of money since the pump can heat and cool your home.

Best for Very Cold Climates

If you live in a remote area, an oil furnace or wood furnace will be your best option, as it’s often easier and more affordable to access the fuel you need to run your heating system. Otherwise, a gas furnace is likely to provide the best heat solution for your home. It heats faster and runs more efficiently.

Every home and family is different. Consider your climate, budget, and end goal when shopping for a new furnace since this is a decision you’ll have to live with for years to come. Look into hiring a local furnace installation company to install your new heater safely.

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