Curious about new electric furnace cost? This guide breaks down prices, installation factors, and ongoing bills so homeowners can plan with confidence. It explains what drives electric furnace installation cost, how to estimate operating cost, and when an electric furnace is a smart choice versus a heat pump or gas furnace.
What Drives New Electric Furnace Cost
The total price of a new electric furnace depends on several variables. Unit size (kW), electrical capacity, ductwork condition, and labor rates have the biggest impact. Permits, thermostats, and brand also influence the final bill.
Electric furnaces are essentially air handlers with resistance heat strips. That simplicity keeps hardware cost modest. However, electric upgrades and duct repairs can raise installation cost more than the furnace itself.
Local climate also matters. Colder regions typically require higher kW units and more robust wiring, while mild climates may get by with smaller systems and lower installed cost.
Typical Price Ranges For Electric Furnaces
For most U.S. homes, a new electric furnace cost falls into the ranges below. Prices vary by market and scope.
| Scenario | Installed Cost Range | What’s Included |
|---|---|---|
| Like-For-Like Replacement | $1,900–$4,500 | New furnace, basic labor, reuse ducts and existing power |
| Standard Install (Most Homes) | $2,500–$6,800 | Furnace, labor, minor duct or wiring tweaks, permit |
| Premium/Variable-Speed Air Handler | $3,800–$8,500 | Quieter blower, better comfort, advanced controls |
| With Panel/Wiring Upgrade | $4,500–$9,500+ | Service upgrade, new circuits, AFCI/GFCI as required |
| Manufactured/Mobile Home | $2,200–$4,500 | HUD-Listed furnace, compact install, dedicated cabinet |
Hardware alone typically costs $700–$2,700 for standard electric furnaces and $1,500–$4,000 for premium air handlers or high-static models. Labor usually runs $1,200–$3,000 for straightforward swaps.
Cost Breakdown: Where The Money Goes
| Component | Typical Cost | Notes |
|---|---|---|
| Electric Furnace (Unit) | $700–$2,700 | 10–25 kW; multi-stage or variable-speed costs more |
| Labor | $1,200–$3,000 | 4–10 hours; remove old unit, set, wire, test |
| Electrical Work | $300–$1,500 | New breakers, disconnect, whip; more if long runs |
| Panel/Service Upgrade | $1,200–$3,500 | If main panel is undersized for added load |
| Duct Modifications | $300–$2,500 | Transitions, sealing, balancing; new ducts cost more |
| New Duct System | $3,000–$10,000 | Home layout, materials, and access drive price |
| Thermostat | $100–$450 | $150–$300 for smart thermostats, plus $100–$250 install |
| Permits/Inspection | $100–$500 | Varies by jurisdiction |
If a home lacks adequate electrical capacity, the breaker panel and even service drop may need upgrades. This is the most common reason prices exceed averages for electric furnace installation cost.
Electric Furnace Operating Cost: How To Estimate
Electric resistance heat converts power to heat at nearly 100% efficiency. The key driver of operating cost is your electricity rate and how many hours the furnace runs each season.
Quick Formula
Cost per hour ≈ Furnace kW × Electricity rate ($/kWh). For example, a 15 kW furnace at $0.16/kWh costs about $2.40 per hour (15 × $0.16).
Illustrative Seasonal Costs
| Furnace Size | Cost Per Hour (at $0.16/kWh) | ~500 Hours/Season | ~1,000 Hours/Season |
|---|---|---|---|
| 10 kW | $1.60 | $800 | $1,600 |
| 15 kW | $2.40 | $1,200 | $2,400 |
| 20 kW | $3.20 | $1,600 | $3,200 |
| 25 kW | $4.00 | $2,000 | $4,000 |
These are examples. Actual runtime depends on insulation, climate, thermostat settings, and whether a heat pump carries part of the heating load.
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Cost Per Unit Of Heat
Comparing fuels is easier using cost per million BTU (MMBtu) of delivered heat. Prices are averages; check local rates.
| Heating Type | Assumptions | Cost Per MMBtu Delivered |
|---|---|---|
| Electric Resistance Furnace | $0.16/kWh | ~$46.90 |
| Air-Source Heat Pump | $0.16/kWh, seasonal COP ≈ 2.5 | ~$18.80 |
| High-Efficiency Gas Furnace | $1.30/therm, 95% AFUE | ~$13.70 |
Electricity and gas prices vary by state. See recent averages from the U.S. Energy Information Administration: electricity and natural gas. Operating costs are usually highest for electric resistance heat, and lowest for efficient gas or heat pumps.
Electric Furnace Vs. Heat Pump Vs. Gas: Cost And Efficiency
Homeowners often compare a new electric furnace cost to other options. The tradeoffs involve upfront price, utility rates, and comfort in cold weather.
| System | Typical Installed Cost | Efficiency | Operating Cost | Best Fit |
|---|---|---|---|---|
| Electric Furnace | $2,500–$6,800 | ~100% (resistance) | Highest in most regions | No gas line, backup heat, quick replacements |
| Air-Source Heat Pump (Ducted) | $4,000–$10,000+ | HSPF2 7–9 (COP ~2–3) | Low to moderate | Mild to cold climates; primary heat |
| High-Efficiency Gas Furnace | $3,500–$8,000 | 90–98% AFUE | Low where gas is available | Cold climates with gas service |
Heat pumps typically cut heating bills 40–70% versus electric furnaces, depending on climate and rates. A common approach is a heat pump with auxiliary electric heat strips for very cold snaps.
If a gas line is present and rates are low, a high-efficiency gas furnace often has the lowest operating cost. Where gas is unavailable, a heat pump is usually the best long-term value.
Sizing And Electrical Requirements
Electric furnaces are rated in kilowatts (kW) and BTU per hour. Proper sizing should follow a Manual J load calculation to match the home’s heat loss.
| Home Size & Climate (Approx.) | Furnace Size (kW) | BTU/hr Output | Approx Full-Load Amps (240V) | Typical Breaker(s) |
|---|---|---|---|---|
| Up to 1,200 sq ft, mild | 10 kW | 34,120 BTU | ~41.7 A | 60 A |
| 1,200–1,800 sq ft, mixed | 15 kW | 51,180 BTU | ~62.5 A | 80–90 A |
| 1,800–2,500 sq ft, colder | 20 kW | 68,240 BTU | ~83.3 A | 2 × 60 A or 100–125 A |
| 2,500+ sq ft or severe cold | 25 kW | 85,300 BTU | ~104.2 A | 2 × 70–80 A or 125–150 A |
Electrical circuits for heating are usually treated as continuous loads, so the National Electrical Code requires sizing at 125% of the load. Many furnaces use multiple breakers (for staged heat strips and the blower) rather than one large breaker.
Installation Steps, Timeline, And Labor
Most straightforward replacements take 4–10 hours, assuming adequate power and usable ducts. Complex jobs with duct redesign, panel upgrades, or tight access can take longer.
- Home assessment and Manual J sizing
- Unit selection and permit application
- Removal of old equipment
- Set new furnace/air handler, align with ductwork
- Electrical connections, new disconnects, and breakers
- Thermostat and control wiring
- Start-up, testing, and airflow balancing
- Inspection by authority having jurisdiction
Ask the contractor to document airflow (CFM), static pressure, and heat strip staging. Proper commissioning improves comfort and avoids nuisance breaker trips.
Additional Cost Factors And Add-Ons
Several items can push a project above the “typical” range. Knowing these helps prevent surprises and keeps the new electric furnace cost on budget.
- Panel capacity: Furnaces ≥15 kW may need 80–125 amp capacity across one or more breakers.
- Long wire runs: Larger wire gauge and conduit can add material cost.
- Duct leaks or undersizing: Sealing and resizing improve comfort and efficiency.
- Thermostat upgrades: Smart thermostats aid scheduling; some require a C‑wire.
- Indoor air quality: Media filters, UV, or ERVs add hardware and labor.
- Emergency heat: Larger strip kits for heat pump backup increase load and cost.
Rebates, Tax Credits, And Financing
Pure electric resistance furnaces typically do not qualify for federal tax credits. However, ducted heat pumps do, and some upgrades can qualify when paired with a heat pump.
- Federal 25C Credit: Up to $2,000 for qualifying heat pumps; up to $600 for an electric panel upgrade only when needed for the heat pump.
- Utility rebates: Common for heat pumps and weatherization; rare for electric resistance heat.
- State programs: Vary widely; check your state energy office and utility.
- Financing: Many contractors offer low-APR promos; compare against personal loans or HELOCs.
See ENERGY STAR heat pump resources for incentive details and qualifying models.
Brand And Model Examples
Prices reflect typical street costs and can vary by distributor, region, and features. Always compare warranties and blower options.
| Brand/Line | Unit Price | Installed Range | Notes |
|---|---|---|---|
| Goodman/Amana Electric Furnace | $800–$2,000 | $2,200–$5,000 | Budget-friendly; common sizes 10–25 kW |
| Rheem/Ruud Air Handler With Heat Kit | $1,000–$2,500 | $2,800–$6,200 | Pairs well with AC or heat pump |
| Carrier/Bryant Air Handler | $1,300–$3,000 | $3,200–$7,200 | Variable-speed blower options |
| Trane/American Standard TEM Air Handler | $1,400–$3,200 | $3,500–$7,800 | Quiet operation, robust build |
| Lennox Air Handler With Heat Strips | $1,400–$3,200 | $3,600–$7,900 | High-static options for longer duct runs |
| Intertherm/Miller (Manufactured Homes) | $800–$1,900 | $2,200–$4,500 | HUD-listed, compact cabinets |
Many “electric furnaces” are packaged as air handlers with add-on heat kits. If pairing with a future heat pump, confirm compatibility now to avoid rework later.
Maintenance, Lifespan, And Repair Costs
Electric furnaces are simpler than gas systems. There’s no combustion, venting, or fuel piping. That typically means lower maintenance and fewer safety concerns.
- Lifespan: 15–25 years with routine care
- Annual tune-up: $100–$200, includes electrical checks and airflow
- Filters: $5–$40 per filter, replaced every 1–3 months
- Heating element replacement: $150–$500 per element installed
- Blower motor replacement: $400–$900 (ECM motors cost more)
- Thermostat replacement: $150–$450 installed
Keep ducts sealed and filters clean to protect the blower and reduce energy use. Variable-speed blowers can improve comfort and reduce noise, often paying back modestly in electricity savings.
When An Electric Furnace Makes Sense
Despite higher operating costs, an electric furnace can be practical in several scenarios. Matching the equipment to the use case is key.
- No gas service and limited budget for a heat pump
- Mild climates with low heating hours and reasonable electric rates
- Manufactured homes needing compact, HUD-listed units
- Backup heat for a heat pump in extreme cold snaps
- Quick replacement when comfort is urgent and options are limited
If long-term energy cost is a concern, consider a heat pump now or choose an air handler that is heat pump–ready. That allows upgrading the outdoor unit later while keeping the indoor equipment.
How To Get Accurate Quotes
Transparent quotes prevent scope creep and help compare apples to apples. Ask for line items and commissioning details, not just a total price.
- Manual J load calculation results and selected kW size
- Electrical scope: breaker sizes, wire gauge, panel upgrades
- Ductwork: static pressure readings, needed transitions, sealing
- Thermostat model and compatibility
- Permits and inspections included
- Start-up report: airflow (CFM), amperage draw, staging
- Warranty: parts, labor, and workmanship terms
Collect at least three bids from licensed, insured contractors. Check references and verify permits are pulled. Confirm timeline and any contingencies for unforeseen electrical or duct issues.
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Cost-Saving Tips Before And After Installation
Lowering the total cost of ownership starts with home upgrades that reduce heating load and continues with smart operation.
- Seal and insulate the attic and ducts to shrink furnace size and runtime.
- Air sealing around doors, windows, and penetrations reduces drafts.
- Smart controls: Use schedules and setbacks; avoid frequent on/off cycles.
- Filter discipline: Replace on schedule to maintain airflow and efficiency.
- Time-of-use rates: If available, shift preheating to off-peak hours.
- Consider a heat pump or dual-fuel plan when budget allows; leverage incentives.
- Solar PV can offset some electricity, though winter output is lower.
Frequently Asked Questions About Electric Furnace Prices
How Much Does It Cost To Replace An Electric Furnace?
Most homeowners pay $2,500–$6,800 installed for a standard replacement. Simple swaps can be under $3,000, while jobs requiring panel upgrades or ductwork may exceed $7,500.
Is A New Electric Furnace Cheaper Than Gas?
Upfront, the electric furnace unit is often cheaper and installation can be simpler. Operating costs are usually higher for electric resistance heat than for gas or heat pumps, especially in cold climates.
What Size Electric Furnace Do I Need?
Sizes commonly range from 10–25 kW. Proper sizing requires a Manual J calculation. Oversizing can cause uncomfortable temperature swings and higher bills.
Will I Need An Electrical Panel Upgrade?
Many homes can support 10–15 kW furnaces with existing service. Larger units often require 80–125 amps across one or more breakers, which can necessitate a panel upgrade.
How Do Electric Furnaces Pair With Heat Pumps?
Electric heat strips are often installed in a heat pump’s air handler to provide auxiliary or emergency heat. This approach delivers lower overall operating costs than resistance heat alone.
Real-World Example Quotes
These illustrative examples show how scope changes affect new electric furnace cost. Actual bids vary by market.
- Basic Replacement (Mixed Climate, 1,600 sq ft): 15 kW unit, reuse ducts and wiring, permit, standard thermostat. Total: $3,400.
- Panel Upgrade Required (Colder Climate, 2,100 sq ft): 20 kW unit, two new 60A circuits, 200A panel upgrade, sealing leaky ducts. Total: $7,900.
- Heat Pump–Ready Air Handler (Warm Climate, 1,300 sq ft): 10 kW air handler with variable-speed blower, smart thermostat, minor duct transition. Total: $4,600.
Key Takeaways For U.S. Homeowners
- New electric furnace cost typically ranges from $2,500 to $6,800 installed; higher with electrical upgrades.
- Operating cost is driven by electricity rates and runtime; resistance heat is the most expensive per unit of heat.
- Heat pumps often deliver the best long-term value and incentives; consider an air handler that’s heat pump–ready.
- Right-sizing and commissioning protect comfort, safety, and energy use.
- Get detailed bids with electrical, duct, and warranty line items to avoid surprises.
Glossary Of Common Terms
- kW (Kilowatt): Power rating of the electric heat strips; 1 kW ≈ 3,412 BTU/hr.
- BTU/hr: Heat output per hour. Higher BTU/hr means more heating capacity.
- COP (Coefficient of Performance): Heat pump efficiency; 2.5 COP means 2.5 units of heat per 1 unit of electricity.
- AFUE: Annual Fuel Utilization Efficiency for gas furnaces; higher is better.
- Manual J: Engineering method to calculate heating/cooling loads.
- Static Pressure: Airflow resistance in ductwork; impacts comfort and noise.
How to Get the Best HVAC Prices
- Firstly, keep in mind that installation quality is always the most important thing for residential HVAC project. So never sacrifice contractor quality for a lower price.
- Secondly, remember to look up the latest rebates as we talked above.
- Thirdly, ask for at least 3 bids before you make the decision. You can click here to get 3 free estimates from your local contractors, and this estimate already takes rebates and tax credit into consideration and filter unqualified contractors automatically.
Lastly, once you chose the right contractor, remember to use the tactics from this guide: Homeowners Tactics When Negotiating with HVAC Dealer to get the final best price.
