At Rich’s Heating and Cooling LLC, we know that replacing or installing a new furnace is a major decision. Whether you're upgrading to a more energy-efficient unit or replacing an old, inefficient system, understanding the cost factors can help you make the best choice for your home and budget.
If you have questions or want to schedule an installation, give us a call at (732) 433-0068—we’d be happy to help!
What’s the Average Cost of Furnace Installation in New Jersey?
New Jersey homeowners can expect to pay anywhere from $3,000 to $10,500 for a new furnace, including installation. Prices vary based on factors such as furnace type, brand, efficiency rating, and installation complexity.
| Furnace Type | Low-End Cost | Average Cost | High-End Cost |
|---|---|---|---|
| Gas Furnace | $3,500 | $5,500 | $10,000 |
| Electric Furnace | $2,000 | $4,000 | $7,000 |
| Oil Furnace | $4,200 | $5,800 | $7,500 |
| Propane Furnace | $3,800 | $5,600 | $9,000 |
| High-Efficiency Furnace | $5,000 | $7,500 | $12,000 |
Note: These prices include basic installation. Additional modifications, permits, or ductwork can increase costs.
Key Factors That Affect Furnace Installation Costs
1. Furnace Type & Fuel Source
Gas furnaces: The most popular choice in NJ due to natural gas availability. They range from $3,500 to $10,000 installed.Electric furnaces: Cost $2,000 to $7,000 but can be more expensive to operate due to higher electricity costs.
Oil furnaces: Common in older homes, with installation costs between $4,200 and $7,500.
Propane furnaces: A great alternative where gas isn’t available, priced around $3,800 to $9,000.
Heat pumps: An energy-efficient option that doubles as an AC, ranging from $4,500 to $10,000.
👉 You can call Rich’s Heating and Cooling LLC at (732) 433-0068 to ask about heat pumps or schedule an installation.
2. Furnace Efficiency (AFUE Rating) & Energy Savings
A furnace’s AFUE (Annual Fuel Utilization Efficiency) rating tells you how efficiently it converts fuel into heat:
| AFUE Rating | Efficiency Level | Estimated Cost | Annual Energy Savings |
| 80% AFUE | Standard | $3,500 – $6,500 | Low savings |
| 90% AFUE | High-Efficiency | $5,000 – $8,500 | Moderate savings ($150 – $300/yr) |
| 95%+ AFUE | Ultra-Efficient | $6,500 – $12,000 | High savings ($300 – $600/yr) |
Higher-efficiency furnaces cost more upfront but reduce monthly heating bills significantly.
3. Furnace Size (BTU Output)
A properly sized furnace ensures your home stays warm without wasting energy. Furnace size is measured in BTUs (British Thermal Units).
| Home Size (sq. ft.) | Recommended Furnace (BTUs) | Estimated Installation Cost |
| 800 – 1,200 | 40,000 – 60,000 BTU | $3,000 – $5,500 |
| 1,200 – 1,800 | 60,000 – 80,000 BTU | $4,500 – $7,500 |
| 1,800 – 2,500 | 80,000 – 100,000 BTU | $6,000 – $9,500 |
| 2,500+ | 100,000+ BTU | $8,000 – $12,000 |
Choosing the right size prevents excessive energy use and premature wear on the system.
4. Brand and Features
Premium brands often cost more but offer superior warranties and performance. Here’s an example of pricing by brand:
| Brand | Mid-Range Model | High-Efficiency Model |
| Trane | $5,000 – $7,500 | $7,500 – $10,000 |
| Carrier | $4,800 – $7,200 | $7,200 – $9,500 |
| Lennox | $4,500 – $7,000 | $7,000 – $10,000 |
| Rheem | $3,800 – $6,500 | $6,500 – $9,000 |
Advanced features like variable-speed blowers, smart thermostats, and zoned heating can add $500 – $2,000 to installation costs.
Additional Cost Considerations
Installation Complexity & Labor Costs
Basic replacement: $1,500 – $3,000New ductwork: $2,000 – $5,000
Chimney liner upgrade: $500 – $1,500
Permits & inspections: $200 – $600
Rebates & Incentives
New Jersey offers incentives for energy-efficient furnace installations:
NJ Clean Energy Program: Up to $500 in rebates.
Federal Tax Credits: Up to $600 for ENERGY STAR-certified units.
Utility Company Rebates: Check with PSE&G and NJ Natural Gas for additional discounts.
How to Save Money on Your Furnace Installation
Get multiple quotes – Always compare prices from at least three HVAC companies.
Schedule off-season installations – Fall and spring installations can save you 5-15%.
Take advantage of financing – Many companies, including Rich’s Heating and Cooling LLC, offer flexible payment plans.
Check for rebates – Combine state, federal, and manufacturer incentives for maximum savings.
Call Rich’s Heating and Cooling LLC for a Free Quote!
At Rich’s Heating and Cooling LLC, we’ve been serving New Jersey homeowners for over 15 years with expert fur
nace installations at competitive prices. We offer free estimates, financing options, and top-brand furnaces to keep your home warm and energy-efficient.
📞 Call us today at (732) 433-0068 or schedule a consultation online!
Your comfort is our priority!
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