A common mistake homeowners make is continuing to use an old furnace that’s no longer efficient. Another mistake is choosing the most affordable option when it comes time to replace it. While it may seem like you’re saving money, you may actually be spending more in the end.

Annual Fuel Utilization Efficiency

The industry uses the annual fuel utilization efficiency (AFUE) ratio to measure furnace efficiency. It’s particularly notable for fuel-burning furnaces. A standard gas furnace, for instance, will have an AFUE rating of around 80. That means that it converts 80% of the fuel it burns into home heating and wastes the other 20%.

While the industry uses AFUE for electric furnaces, those systems have a rating of or near 100. Despite that, electric furnaces aren’t necessarily cheaper to run because of the cost of electricity. If going electric, you’ll want to look at the estimated watts instead.

Older Furnaces Lose Efficiency Over Time

Furnaces lose some efficiency with each season of use. You can help a furnace age more gracefully through seasonal maintenance, but some loss is unavoidable. The rate of loss can be as high as 1% per year based on some studies. That means that if you have a 15-year-old AFUE 80 furnace, it could be operating at around 65%.

New Systems Are More Efficient

Furnaces built before 2015 generally have an AFUE rating of 78 or less. Even those built in or after 2015 usually have an AFUE rating of no higher than 80. While mid-efficiency furnaces still start at 80, they can go as high as 89 without a significant increase in sticker price.

You also have the option of a high-efficiency model. These models start at AFUE 90 and can range as high as 98.5. While they do cost more initially, they often pay for themselves over the life of the equipment.

Energy Incentives

The Environmental Protection Agency awards the ENERGY STAR label to highly efficient furnaces. The EPA generally reserves the label for condensing furnaces, which burn fuel and have a second heat exchanger. That label gives consumers confidence in their purchases. It may also allow you to claim one or more incentives. There is a tax credit that you can claim on your federal tax return. There are also rebates available through the EPA, manufacturers, local utility companies, and other groups.

Improved Home Value

A modern furnace and a high-efficiency model, in particular, will increase your property value. That may be an important factor if you plan to sell or rent your home during the new furnace’s lifespan. Newer HVAC equipment can also help a house sell or rent faster than it otherwise would.

If you’d like to explore heating installation in Abilene TX, contact Olympus Electric & Air to set up an in-home consultation.

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