How to Select a New Home Furnace

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    • 1). Check the fuel source for each type of furnace you are considering. A furnace can be powered by electricity, heating oil, or natural gas. The cost of operating a furnace using each of these energy sources can vary wildly depending on region, fuel prices and climate. Consult local suppliers to determine current unit prices for each of these fuels, and keep these prices in mind as you select your furnace.

    • 2). Compare efficiency ratings for each model. Furnace efficiency is measured using Annual Fuel Utilization Efficiency (AFUE), which measures how much of the energy consumed by the furnace is converted into heat. An AFUE of 80 percent means that 80 percent of the fuel consumed is transformed into heat, while 20 percent is wasted as condensation or exhaust. According to the Canada Mortgage and Housing Association, furnaces produced today must have a minimum AFUE of 78. An AFUE of 89 or more is considered a high-efficiency unit.

    • 3). Determine the best size furnace for your home. According to the Michaels Engineering Company, the old rule of thumb for furnace sizing was to provide 40 to 45 BTUs of heat per hour for every square foot of living space. This may result in oversizing, however, so most furnaces today are sized using the Air Conditioning Contractors of America (ACCA) Manual J, which accounts for the design of your house as well as its size and level of insulation. The old rule of thumb is still a useful way to narrow your search.

    • 4). Evaluate the quality of each unit. The Rheem Heating Company recommends looking for features such as corrosion-resistant heat exchangers, which extend the life of a furnace, and insulated blower compartments, which reduce noise levels. The company also suggests looking for units that come with a lifetime warranty on the heat exchanger, which is one of the main operating components in the average furnace.

    • 5). Evaluate your local climate. In very cold climates, the Michaels Engineering Company recommends choosing a furnace with an AFUE of 90 percent or greater. The added cost of this more efficient unit will typically be offset by the increased efficiency and resulting decrease in utility bills. In milder climates, a furnace with an AFUE below 90 percent will often be sufficient.

    • 6). Calculate your costs. The cost of a new furnace can vary wildly depending on brand, model and region. To perform a true "apples to apples" approach, add up the cost of the furnace and installation before making a comparison. It can also help to estimate the monthly or annual operating cost of each unit based on efficiency levels and local energy prices.

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