Furnaces: Best Bang for Your Buck

Colin Jones knew he’d be slashing his natural gas bill when he switched to a high-efficiency furnace a few years ago.  What he didn’t realize was how much he’d also save on electricity.

“When we moved in, the furnace was a clunky old thing that used to make the lights dim when it started up,” says Jones, who lives near Canmore. “After we got a high-efficiency furnace with a DC motor and two-phase fan, the gas bill dropped a fair bit, and it made a huge difference in our electric bill.”

On average, Albertans who replace an older gas furnace with a high-efficiency model can expect to reduce their winter heating bill by at least 25 per cent and their annual greenhouse gas emissions by 1.4 tonnes or more.  Adding a direct-current (DC), variable-speed motor to that new furnace can also cut its electricity consumption by about one third.

Besides significant savings on their energy bills, Albertans can also earn a nice reward when they switch to a high-efficiency furnace, which costs roughly $5,000 installed.  The provincial government is offering $500 to homeowners who upgrade to an ENERGY STAR®-qualified furnace with an efficiency rating of at least 92 per cent with a DC variable-speed motor.  The federal ecoENERGY Retrofit Program offers a $625 grant for the same system.  Note: To qualify for the federal grant, you must have an independent energy assessment of your house before and after undertaking any approved upgrades, such as installing a new furnace.  A home energy evaluation is not required for the provincial rebate however.


Colin Jones with his high-efficiency furnace

“If you’re looking to improve the energy efficiency of your house, getting a high-efficiency furnace is one of the best bangs for your buck,” says Stephen Farrell, president of Calgary-based VerdaTech Energy Management & Consulting, which performs 600-700 ecoENERGY assessments a month throughout Alberta.  “The payback period is roughly eight years, so for the remaining 12 or so years of the furnace’s life, those energy savings are money in your pocket.”

A high-efficiency furnace – identified as such by an ENERGY STAR label – has an annual fuel utilization efficiency (AFUE) rating of 90 to 97 per cent.  In other words, a furnace at the high end of this range will convert 97 per cent of the combusted natural gas to usable energy, with the remaining three per cent vented to the outside.  By comparison, many older furnaces have an AFUE of only about 60 per cent, meaning 40 per cent of the fuel is wasted.

While you can no longer buy low-efficiency furnaces, you can still buy mid-efficiency units, with AFUE ratings between 78 and 84 per cent.  Although they cost about $1,000 less (installed) than a high-efficiency furnace, they are up to 19 per cent less efficient than the latter and will thus increase your operating costs and greenhouse gas emissions.  Natural Resources Canada has announced that, as of December 31, 2009, any new furnace will have to be at least 90 per cent efficient, which will effectively eliminate mid-efficiency furnaces from the marketplace.

“Over the last three years, more and more homeowners have been choosing high-efficiency furnaces,” says Barb Timmer, co-owner of Calgary-based Alberta Furnace & Heating Service.  “Consumers are looking for the highest efficiency because of gas prices.” With the provincial natural gas rebate no longer available, high-efficiency furnaces provide Albertans with the necessary ammunition in combating their heating bills.

Because of this growing popularity, a number of Alberta contractors now have considerable experience installing high-efficiency furnaces.  The layout and space considerations of your house will dictate what ductwork is required.  For example, most high-efficiency furnaces are vented by a four-inch pipe to an outside wall, and combustion air is drawn in through plastic pipes.

Before buying a high-efficiency furnace, it’s recommended you get estimates from three contractors.  They should be able to properly size a new furnace to your heat needs, which includes the square footage, insulation levels and air tightness of your house.  To minimize the furnace size, it makes sense to first plug any heat leaks in your house and perhaps upgrade your insulation.  A too tightly-sealed house, however, can affect air quality, so it may be worth installing a fresh air intake or mechanical ventilation system, which brings in and circulates fresh air without causing drafts or heat loss.

“Don’t wait ‘til your furnace breaks down before you replace it,” advises Farrell.  “If you need an emergency replacement, you’ll pay more, have fewer choices and may not be eligible for a rebate.  If you’re proactive, you can make sure you get what you want.”

For information on the provincial furnace rebate, click here.

For a detailed list of federal grants available for furnaces, click here



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