A functional heating system is a must for any modern homeowner. Replacing an existing furnace can be a costly undertaking, and most homeowners want to be able to start saving for a new furnace in advance.

In order to determine how much money you need to save up in order to buy a new furnace, you must have an understanding of the factors that can affect heating system installation costs.

1. Energy Source

One of the primary factors that can affect the cost of a new heating system is the energy source your new furnace will draw upon.

Modern furnaces can be powered by electricity, natural gas, oil, or propane. The most affordable way to replace your furnace is to rely on the same power source that is feeding your existing furnace once you install the new one.

If you want to make a change in an effort to improve the energy efficiency of your home, you will need to include the cost of adding a new power source to the cost of the new furnace itself. 

2. Furnace Size

Furnaces come in a wide range of sizes. The bigger the furnace, the more expensive it will be to purchase that furnace. You can help minimize any costs related to furnace size by ensuring you are buying the right furnace for your home.

Don't just assume that you should replace your old furnace with a newer model of the same size. An HVAC technician can complete an audit of your home to determine your unique heating requirements. This information can then be used to identify the right furnace size for your residence.

Investing in a furnace that is sized appropriately for your living space will help minimize cost while maximizing comfort over time.

3. Energy Efficiency

Investing in a new furnace gives you the opportunity to improve the energy efficiency of your home. All furnaces sold today come with a fuel utilization efficiency rating. This rating, which is commonly referred to as an AFUE, lets buyers know how efficiently the furnace will operate over time.

A furnace with a higher AFUE may cost more upfront, but it has the potential to significantly reduce your energy costs in the future.

Don't let the cost of installing a new furnace surprise you. Plan ahead by factoring in the costs associated with the energy source, furnace size, and energy efficiency as you start to save for a new furnace.