Why Are Gas Furnaces So Expensive to Install?

Gas furnace installation can be very expensive. Some homeowners are surprised to discover the installation can account for 50% of the total cost, or more.  Why are gas furnaces so expensive to install?  This guide breaks down the costs for installation so you can know what to expect when you decide to get written estimates for your next furnace.

Gas Furnace Installation Costs

Here are the types of costs you’ll encounter.  Some furnace contractors won’t itemize the estimate in this much detail, but here are the factors they’re considering.

1. Removal and Disposal of the Old Furnace: $250-$400

If you’ve got an existing furnace, it will need to be disconnected from the wiring, the gas line and the plenum/ductwork.  Then it will need to be disposed of properly.  Removing a furnace from an attic or cramped crawl space will cost more than an easier job.  Disposal fees vary widely.

2. New Plenum and Sheep Metal: $200-$350

If new construction, you’ll need a plenum to connect the furnace to the duct work.  In most cases, this will cost less than $350 for the plenum and installation.

3. Wiring and Pipe in New Construction: $300-$600

For a gas furnace in new construction, an electrical line will need to be run from the electric box to the furnace.  It will be direct-wired.  In addition, a gas line will need to be run from where the gas line enters your home to the furnace.  Together, these necessities can cost $300-$600. If you’ve got to tap into the gas line that runs along your road, your costs may be even higher.

4. Installation of the Furnace: $1,000-$1,750

The furnace itself will need to be set in the appropriate location and connected to wiring and the gas pipe.  In addition, the furnace will need to be vented.  The cost will be higher if a new vent needs to be included.  The time the installation is expected to take and the amount of materials included will significantly affect the estimates.

If the installation is especially difficult, complex or requires more material than usual, prices may be even higher.  These averages will help you determine a ballpark figure.

Saving Money on Furnace Installation

There are several ways to save money on gas furnace installation.  You can remove the old furnace yourself and dispose of it. If you do, be sure to turn off the electrical circuit to the furnace as well as the gas line before you begin.  Be careful not to damage the existing plenum so that it can be reused if it is the right size.

Secondly, if you can choose to have the installation done during a time when contractors in your area are slower, you may get more competitive estimates.  For example, in the south, summer is busiest while late fall and early spring are slower.

Also be sure to get multiple estimates for the work in order to find the lowest prices.  A quick way to do this is to request 3 free estimates online from contractors in your area who sell the type of equipment you’re interested in.  See our reviews that contain information about features as well as gas furnace prices to learn more about brands and models available.

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