There is a wide range of furnace efficiencies, although only high-efficiency gas furnaces are sold in Canada as of 2010. The range of efficiency will vary by fuel.
Electric furnaces work on electric resistance. The full 100 per cent of the energy consumed goes towards the heating of the house. The inefficiencies with electric heating happen before the electricity reaches your house. If the electricity is created by burning fuels, there are inefficiencies in that process plus losses as the electricity moves through the lines.
Oil furnaces have become far more efficient since the height of their popularity in the mid-twentieth century. Efficiencies have risen from roughly 60 per cent to well over 80 per cent as a result of advanced technologies - first to flame retention head burners and then to high static pressure burners. The more efficient oil furnaces require a better chimney than their conventional counterparts, so you will probably need to upgrade the chimney with a stainless steel liner inside the old clay tile. Make sure this is included in the quote.
Failure to have a properly sized chimney will result in excessive chimney condensation and eventual destruction in the case of masonry chimneys. There are high-efficiency, condensing oil furnaces as well. Earlier versions had reliability problems. The new generation, launched in 2003, may have resolved these difficulties.
New gas furnaces in Canada are high-efficiency (89 - 96 per cent) condensing furnaces. The high-efficiency furnaces use a plastic vent and are most often vented out the side wall. Propane furnaces are usually modified natural gas equipment.
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