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Ideal for those in search of an affordable and efficient heating system.The furnace is the heart of a central heating system. A large chunk of your household budget goes to heating and cooling your home. That cost only goes up when your home heating system doesn't work right or it breaks down. The cost to replace your home heating system won't be cheap either, but some contractors offer payment plans if you need help. Another place to look for help is your utility company; sometimes they offer rebates when you replace outworn equipment with an energy-star compliant system. Equipment Equipment costs are driven by the type of furnace at the heart of your home heating system. Low-efficiency models will cost less, but result in higher energy bills. High-efficiency models cost more, but save more over the long haul. Prices for gas furnaces in March of 2013 range from $1,700 for the low-efficiency models up to $12,500 for high-efficiency models. Electric furnaces start at $576 and range up to $1,700 or more depending on the brand and furnace size.

Furnace Size and Removal A heating and air-conditioning contractor sizes the furnace to your home's square footage. They use a series of calculations based upon the British Thermal Units or BTUs needed to heat the space. The larger the space, the more powerful the home heating system needs to be. For already constructed home heating systems, the contractor will need to remove the old furnace to add the new one. These charges will be included in the installation costs. Installation Home heating systems are complicated systems that require the services of a contractor to install. While you can certainly purchase your furnace yourself, most contractors won't warranty the furnace or might not install it if you don't buy it from them. Installation fees vary across the county, but start at roughly $50 per hour up to $150 or more. It takes approximately five hours to install a small furnace and more to install a large one. Home Heating System If you are considering installing a central heating and air-conditioning system when you don't have one in your house, plan on spending several thousand dollars for the complete system.

The size of the system determines the labor hours involved to build the system. To outfit a house with the ductwork and vents can cost as much as the brand new furnace or more when you consider installation fees upwards of $50 per hour. Contractor Hiring Before you select a contractor, consider bids from at least three to five reputable contractors. Check with your state's contractor's licensing board online to ensure that no customer complaints have been filed and that the heating and air-conditioning contracting license is active and valid. Compare the various furnace efficiency ratings recommended by the individual contractors to choose the model and system that best suits your energy needs. Remember that energy-star rated equipment will save you money in the end but might involve a higher up-front cost. References Quality Smith: Gas Furnace CostsAC Direct: Electric Furnaces and PricesHomewyse: Cost to Install a FurnaceEnergy Star: FurnacesCalifornia State Contractor's License Board: Check a Contractor License or Home Improvement Salesperson (HIS) Registration Photo Credits Jupiterimages/Comstock/Getty Images Suggest a Correction