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Are High Efficiency Furnaces Worth It?
In my blog about window replacements, I made it clear that you'll never get a return on your investment by replacing windows.   So what about furnaces?  If you're replacing your furnace, is it worth installing a high efficiency furnace?  We'll see.
 
Reuben's Old Furnace  
I've already compiled the data from my gas bills going back to 2004 on my Minneapolis home, so this should be pretty simple to figure out.
I use an average of 520 therms per year to heat my house. The average cost of gas in my area has been $0.90 / therm, making my average annual heating cost $468. The average life expectancy of a furnace is about 15 - 20 years. My current furnace is 80% efficient, meaning that 80% of the fuel that gets burned is turned in to heat.  The other 20% disappears up the vent. For this example, I'll use a 95% efficient furnace, which also qualifies for a tax rebate.  This should give me a 15% savings per year, as compared to an 80% efficient furnace. Saving 15% per year on my heating costs equals out to $70/year.  If the furnace only lasted 15 years, I would end up saving ... more

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