If you’re considering upgrading to a 20 kW electric furnace, like the Goodman MBVK20DP1X00-HKTAD201, understanding the full installation cost is essential. The price you pay involves more than just the equipment; it includes labor, electrical work, permits, and sometimes even upgrades to your home’s infrastructure. In this detailed guide, Tony walks you through everything you can expect to spend in 2025.
🌟 Breaking Down Installation Costs
The total cost of installing a 20 kW electric furnace typically includes:
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Equipment Cost
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Labor & Installation Fees
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Electrical Panel Upgrades
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Permits & Inspections
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Ductwork Modifications (if necessary)
Let’s explore each of these in depth.
🔧 1. Equipment Cost: Goodman MBVK20DP1X00-HKTAD201 Furnace
| Item | Estimated Cost (2025) |
|---|---|
| Goodman 20 kW Electric Furnace | $1,500 - $2,500 |
| Additional components (coils, filter cabinets, thermostat) | $300 - $800 |
"The Goodman MBVK series offers one of the best values on the market for homeowners who want full-home electric heating with rock-solid reliability," says Tony.
🏫 2. Labor & Installation Fees
Labor costs depend on your location, installer experience, and project complexity. Here are 2025 estimates:
| Task | Estimated Labor Cost |
| Furnace Installation (basic) | $800 - $1,500 |
| Advanced Ductwork Adjustments | $300 - $1,000 |
| Smart Thermostat Installation | $150 - $400 |
| Full System Start-Up & Testing | Included |
⚡ 3. Electrical Panel Upgrades & Wiring
Electric furnaces pull significant power. A 20 kW unit draws approximately 83 amps at 240 volts. Many older homes require panel upgrades to safely support this load.
| Task | Estimated Electrical Cost |
| New 100-125 Amp Breaker | $300 - $600 |
| Electrical Panel Upgrade (if needed) | $1,200 - $3,500 |
| Heavy Gauge Wiring (6-4 AWG copper) | $500 - $1,000 |
| Professional Electrician Labor | $800 - $1,500 |
Safety Tip: "Always hire a licensed electrician familiar with HVAC power requirements," Tony recommends.
📄 4. Permits, Inspections & Code Compliance
Most municipalities require permits and final inspections for electric furnace installations.
| Item | Estimated Cost |
| Mechanical Permit | $100 - $300 |
| Electrical Permit | $100 - $300 |
| Inspection Fees | Often included |
( Energy Star HVAC Contractor Checklist)
🦜 5. Ductwork Modifications (If Necessary)
While many electric furnaces fit existing duct systems, some homes need modifications to ensure proper airflow.
| Task | Estimated Cost |
| Minor Duct Sealing | $200 - $500 |
| Major Duct Redesign | $1,000 - $3,000 |
| New Return Air Installation | $400 - $800 |
💸 Complete Cost Range for 20 kW Furnace Installation
| Category | Low End | High End |
| Equipment | $1,800 | $3,300 |
| Labor | $800 | $2,500 |
| Electrical | $1,600 | $6,600 |
| Permits | $200 | $600 |
| Ductwork | $0 (if existing ducts are perfect) | $3,000 |
| TOTAL | $4,400 | $16,000+ |
"For most standard installations without major electrical upgrades, expect to pay around $6,000 - $9,000 all-in," Tony advises.
🌆 Regional Cost Variations
Location plays a huge role in labor rates, permit fees, and contractor availability. Here are general trends for 2025:
| Region | Average Total Installed Cost |
| Southeast U.S. | $5,000 - $7,500 |
| Midwest | $6,000 - $9,000 |
| Northeast | $7,000 - $10,000 |
| West Coast | $8,000 - $12,000 |
(HVAC Installation Cost Guide)
🌡️ Long-Term Operating Costs: What to Expect
A 20 kW electric furnace consumes about 20,000 watts per hour when fully engaged. Here’s a sample monthly cost projection:
| Usage | Monthly kWh | Cost (at $0.15/kWh) |
| 3 hours/day | 1,800 kWh | $270 |
| 5 hours/day | 3,000 kWh | $450 |
"Electric heat is simple, but electricity is expensive—that’s why insulation and proper sizing are crucial," Tony emphasizes.
(U.S. Energy Information Administration)
🌿 Rebates, Incentives & Tax Credits (2025)
While electric furnaces typically receive fewer direct rebates than heat pumps, some incentives may apply:
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Electrification rebates under state clean energy programs.
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Federal tax credits for home energy upgrades (insulation, electrical panels).
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Utility company rebates for peak load reduction.
🤝 Common Hidden Costs Homeowners Forget
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Thermostat upgrades (smart thermostats often required)
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Old equipment disposal fees
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Access difficulty (tight basements, crawl spaces)
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Structural modifications (attic flooring, closet framing)
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Surge protection devices (recommended for electric furnaces)
"Budget an extra $500 to $1,000 buffer for unexpected surprises," Tony warns.
📝 Money-Saving Tips for Your Installation
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✅ Get multiple quotes from licensed HVAC contractors.
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✅ Check for utility rebates you may qualify for.
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✅ Consider off-season installation discounts.
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✅ Bundle with other home upgrades for package pricing.
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✅ Finance through low-interest energy improvement loans.
🔐 Is DIY Installation Possible?
Technically, some experienced homeowners could tackle parts of the ductwork or unit placement, but Tony strongly discourages full DIY installations for these reasons:
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Complex electrical requirements
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Strict building codes
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Required inspections and permits
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Warranty voiding if not professionally installed
"Electric furnaces might seem simple, but mistakes here are costly—and dangerous," Tony stresses.
🕹 Final Verdict: Is the Cost Worth It?
✅ If you live in a cold climate without natural gas, the Goodman 20 kW electric furnace offers:
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Reliable full-home heating
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Lower maintenance costs
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Long service life
✅ But expect higher monthly energy bills than alternatives like heat pumps or gas systems.
✅ The total installed cost typically falls between $6,000 and $9,000, depending on your home’s electrical infrastructure.
✅ Professional installation is non-negotiable for safety, code compliance, and long-term reliability.
"In the right situation, a 20 kW electric furnace delivers comfort you can count on. Just be sure you’ve planned for both the upfront and operating costs," Tony concludes.
External Verified References:
In the next article we will know about: How to Maximize Efficiency with Your Goodman 20 kW Electric Furnace: Thermostat Settings, Filters & Maintenance
