You might already know that an energy efficient HVAC system is an eco-friendly investment that can help reduce your carbon footprint. But did you know that choosing the right high efficiency furnace can actually help save you money in the long run? Yes the initial installation fee may be higher, but it can significantly reduce your monthly energy bills—and operate more effectively at the same time! How does that work, you may ask, and how do I make the right choice? We’ve got the answers—just keep reading!
Choosing a High Efficiency Furnace
A high efficiency furnace can save me money? SOLD! But wait…what exactly is a high efficiency furnace? Just like the name implies, it’s a furnace that operates more efficiently. More specifically, it can convert 90 to 97 percent of fuel into energy. This compares to around 80 percent in other up-to-date models and around 60 percent in older versions. If you have a furnace that’s over 10-years-old, for example, it’s probably not operating as effectively as it should and you could probably benefit from a high efficiency furnace.
But while there are many energy efficient furnaces on the market, they aren’t all the same. ENERGY STAR furnaces, for instance, have an efficiency rating of at least 85 percent with different models available at higher ratings. A condensing gas furnace is an example of a unit that typically has a rating between 90 and 97 percent, which not only reduces your monthly costs but also maximizes functionality.
Tax Credits on High Efficiency Furnaces
Not only can you save on monthly bills with a high efficiency furnace, but you may be eligible to receive tax credits too! The U.S. government specifically offers a federal tax credit of up to 30 percent, or up to $1,500, for the purchase and installation of a high efficiency furnace, making up for the more expensive initial installation fees associated with energy efficient products.
The tax credit does apply to gas, propane, and oil furnaces, however, it is not available for electric models.
How Long Will It Take for Your High Efficiency Furnace to Pay Off?
So you’re going to save money on your monthly energy bills—but is it worth the initial installation fees? How long will it take for your high efficiency furnace to pay off? To calculate your pay off, follow the steps below:
- Start by calculating your heating costs from the previous year by adding up each heating bill
- Add the price of your new furnace to the installation fee
- Subtract any rebates or incentives you received from the total cost of the new furnace and installation
- Check how much energy the new furnace is expected to use in one year (this information should be attached to the product itself)
- Multiply the predicted annual energy use figure by the cost of energy in your area to determine annual operating costs
- Subtract annual operating costs for the new furnace from the annual operating costs for the old furnace
- Divide the final cost of the furnace by the energy cost savings to determine how many years it will take for your high efficiency furnace to pay off
Now that you’ve seen the difference a high efficiency furnace will make in your wallet, are you ready to start saving? Contact All Seasons Heating & Cooling today for furnace installation in the Baltimore area and we’ll help you choose the best furnace to save you money!