How Much Does a New Electric Furnace Cost to Install?

Costs for Replacing vs. Installing a New Electric Furnace

Installing a new furnace costs three times as much as replacing one. You’ll pay about $1,000 to $3,500 for a replacement furnace, while a completely new furnace costs $3,100 to $10,300. Installing a new system takes two to three times as long as a repair, ranging from 4 to 10 hours of labor, which contributes to the difference in price.

*Labor averages $50-$150/hour

Framing typically costs between $975 and $2,950. It’s not necessary with a new installation, but it may add to the above price if you decide to frame in a utility closet to house your furnace.

Electric Furnace Labor Cost

Furnace Ductwork Cost

Replacement ductwork costs $10 to $20 per linear foot, bringing the total cost of ductwork for a typical single-family house to $500 to $2,000. Existing installs should still get a thorough inspection and cleaning. Cleaning ductwork costs $275 to $500 and improves both the efficiency of your system and the quality of the air you breathe.

If you are replacing an existing furnace, it is important to inspect your existing ductwork carefully. Leaks make it hard for even the most efficient electric furnace to heat your home adequately. For an inspection and any repairs, find an HVAC repair company near you.

Electric Furnace Prices

Prices for electric furnaces run between $1,700 and $6,000 or higher with labor and material prices. The units alone tend to run $500 to $1,100, regardless of application or type.

Mobile Home Electric Furnace Prices

Mobile home furnaces cost anywhere from $600 to $1,000. They include a blower and typically a downflow installation since most mobile home ductwork runs under the floor.

Mobile homes are one of the most common applications of electric furnaces because they don’t need gas lines and create no carbon monoxide, eliminating the need for venting.

High-Efficiency Electric Furnace Prices

All electric furnaces are high-efficiency since electric heat uses almost 100% of the fuel source. The only time you’ll lose any energy in an electric setup is through outdoor installations or poorly sealed or insulated ducts or homes. For those looking for environmentally sound or cheaper options, here are a couple of notes to consider:

• The most energy-efficient type of electric heating comes from a heat pump. These units typically use about 50% of the energy that a furnace does. Installing a new heat pump costs $4,150 to $7,350.

• Most electricity comes from burning coal, gas or oil which only converts about 30% of the energy to electricity.

Maximize efficiency with sealed ducts, good insulation, and a leak-free home. Consider these projects to make your entire home high-efficiency:

• Install insulation (get the most bang for your buck with attic insulation): $1,500-$6,000, depending on the materials you use

• Replace your windows: $300-$2,100 per window

• Hire a home energy auditor: $250-$700

• Have your ducts cleaned: $250-$500

Price of Used Electric Furnaces

You can get a used electric furnace for around $100 to $300 less than a new one. However, getting a pro to install one can be tricky. Used furnaces don’t come with a warranty and aren't guaranteed to work. Most professionals don’t offer and won’t install used furnaces to avoid liability for a broken unit.

Factors That Impact the Cost of a Residential Electric Furnace

The cost of electric furnaces varies based on installation rate, insulation, duct and vent quality, BTUs, and output. Installation costs depend on:

• Removal and disposal fees: $100-$300. These vary from place to place, so check with your pro or call the recycling or scrap yard for pricing. Most contractors include removing the old furnace as part of the quote, but some contractors charge an added fee.

• Permit and inspection fees: $200-$500. These fees vary by city and state. Building codes and requirements may have changed since your last furnace installation, so prices may increase.

• Other parts: $100-$1,000. You may need additional parts to complete installation. For instance, you may need a new thermostat or new electrical breakers or disconnects. These extra parts will add to the overall cost of your electric furnace installation.

Average Cost to Operate an Electric Furnace Per Month or Year

The average cost of residential electricity is 13 cents per kilowatt hour in 2019. Considering the average home uses about 20,000 watts per hour of heating (with two total hours) for 40 kWh per day for heating, the figures come out to:

• Per hour: $2.60

• Per day: $5.20

• Per month: $158

• Per year: $1,898

These figures vary based on a few things:

• Electricity prices fluctuate. Contact your local electric company or look at your utility bill for current prices.

• Home size. The larger the house, the more you’re going to need to heat it.

Insulation & windows. Insulation and leak-proof windows and doors go a long way to keeping the heating bill down. Of the three main types of electric heat: baseboard, wall heater, furnace, and heat pump, an electric furnace is the most expensive to run due to energy losses in ducts and the extra energy used to run the blower.

DIY vs. Hiring an HVAC Professional

Choosing the correct electric furnace for your needs takes attention to cost, location, and efficiency ratings. Let a pro handle permits, and make sure you’re meeting all building codes. In some locations, you’re required to have a licensed professional do the installation. Even if local code allows the homeowner to do the install, you’re dealing with electrical circuits. So, unless you’re a licensed or qualified electrician, let a local HVAC service do the installation.

FAQ

How much does it cost to convert an oil furnace to electric?

You cannot convert an oil furnace to an electric furnace. You can reuse the duct system, but you’ll need to remove the oil system and install an electric furnace for $1,300 to $6,200.

How efficient are electric furnaces?

Electric furnaces are almost 100% efficient in their energy use, minus a small amount used for indicator lights and the thermostat, but you might lose a little heat through leaky ductwork. However, creating electricity from coal, gas, or oil is highly inefficient—only about 30% of the energy from coal, oil, or gas converts to electricity.

How long does an electric furnace last?

An electric furnace lasts for 20 to 30 years. With some slight repairs, you may be able to make it last 50 years or more.

What size of electric furnace do I need?

Choose an electric furnace that covers a range of 20 to 60 BTUs per square foot of floor space. Take your climate zone into account. Recent changes to the ASHRAE climate zone map might make a difference in how your HVAC pro determines your specific needs.