Electric Furnace Cost: How Much You’ll Really Pay and How to Save

Hey folks, Jake Lawson here. If you’re exploring heating options for your home, you’ve probably run into one big question: how much does an electric furnace cost? Whether you’re thinking about a full replacement or just trying to budget for a new system, understanding the numbers and factors behind electric furnace cost, cost of electric furnace replacement, and new electric furnace cost is crucial.

Today, I’m breaking it all down for you, using modern, value-conscious systems like the Goodman 3-Ton 14.5 SEER2 R-32 bundle as a reference for efficiency and cost comparison. While that’s technically an AC system, understanding the cost of a full home HVAC solution helps you see how electric furnaces fit into the bigger picture.

By the end of this guide, you’ll know:

• What affects electric furnace cost

• How to plan for installation expenses

• The pros and cons of replacing an old furnace

• Ways to save money without sacrificing comfort

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Section 1: Understanding Electric Furnace Basics

An electric furnace is a heating system that uses electricity to generate heat through heating elements, similar to a giant toaster. Unlike gas furnaces that burn fuel, electric furnaces rely on electric resistance heating, making them cleaner to operate in homes without natural gas access.

Key points about electric furnaces:

• They typically last 15–20 years with proper maintenance.

• They can be paired with air conditioning systems — like the Goodman 3-Ton 14.5 SEER2 R-32 bundle — for a full-year comfort solution.

• They require a dedicated electrical panel with sufficient capacity.

Electric furnaces are most common in regions where electricity is cheap and natural gas is unavailable, but their upfront cost is often lower than high-efficiency gas furnaces, though operational costs can be higher depending on electricity rates.

The Department of Energy explains the efficiency and operational considerations of electric furnaces.

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Section 2: Average Electric Furnace Cost

The first thing homeowners want to know is: what’s the real price?

Here’s the general range for 2025:

This estimate aligns with national data sources, including HomeAdvisor and Angi.

The cost of an electric furnace replacement depends on:

• Furnace size (BTUs required for your home)

• Brand and efficiency rating

• Complexity of installation

• Condition of existing ductwork

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Section 3: What Drives Electric Furnace Cost?

1. Furnace Size and Capacity

Electric furnaces are sized in kW or BTUs, and choosing the right size is critical. Oversized furnaces cycle too quickly, wasting energy, while undersized units struggle to heat your home.

• Small home (900–1,200 sq ft): 5–7 kW furnace

• Medium home (1,500–2,000 sq ft): 10–12 kW furnace

• Large home (2,500–3,000 sq ft): 15–20 kW furnace

2. Efficiency Rating

Electric furnaces are naturally efficient (near 100% efficiency for resistance heating), but pairing with variable-speed air handlers or heat pumps can reduce operational costs.

3. Brand Selection

• Budget-friendly: Goodman, Payne

• Mid-range: Lennox, Rheem

• Premium: Trane, Carrier

The equipment price can differ by $500–$1,500 depending on brand alone.

4. Installation Complexity

Factors that add cost:

• Electrical panel upgrades

• Ductwork modifications

• Multi-level homes or tight spaces

• Retrofitting old systems

EnergyStar explains how furnace efficiency and installation impact overall costs.

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Section 4: Comparing Electric Furnace Replacement to Full HVAC Replacement

While an electric furnace focuses on heating, pairing it with an air conditioning system creates a full HVAC solution.

For context, a Goodman 3-Ton 14.5 SEER2 R-32 bundle installed in a typical 1,500–2,000 sq ft home costs $4,000–$8,000, depending on ductwork, labor, and local pricing. Installing a new electric furnace with an existing AC system is often cheaper upfront, but energy costs can be higher than a heat pump or combined high-efficiency system.

Modernize provides calculators to compare full HVAC replacement to furnace-only replacement, helping homeowners budget effectively.

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Section 5: Electric Furnace Replacement Cost — Real-World Examples

Here’s what homeowners typically see:

Scenario 1: Small Home Replacement

• Home: 1,000 sq ft

• Furnace: 7 kW electric unit

• Installation: single-story, standard ductwork

• Total cost: ~$2,200–$3,500

Scenario 2: Medium Home Replacement

• Home: 1,800 sq ft

• Furnace: 12 kW electric unit

• Installation: requires minor duct modifications

• Total cost: ~$3,500–$5,000

Scenario 3: Large Home Replacement

• Home: 2,500 sq ft

• Furnace: 15–20 kW electric unit

• Installation: multi-story, panel upgrade required

• Total cost: ~$5,500–$7,500

These scenarios highlight why proper sizing and professional quotes are essential.

HVAC.com details installation cost ranges and considerations for electric furnace replacement.

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Section 6: Pros and Cons of Electric Furnaces

Pros:

• Near 100% efficiency (all electricity converts to heat)

• Low upfront cost compared to high-efficiency gas furnaces

• Clean and safe (no combustion, no carbon monoxide)

• Compatible with renewable electricity sources

Cons:

• Operational cost can be high if electricity rates are steep

• Limited cooling — requires separate AC system

• May require panel upgrades for higher-capacity units

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Section 7: Tips to Reduce Cost When Replacing an Electric Furnace

1. Keep existing ductwork — major duct modifications can add $2,000+

2. Choose a value brand like Goodman — offers reliability without premium markup

3. Consider professional installation bundled with AC — contractors may offer discounts when installing heating and cooling together

4. Plan for panel upgrades — sometimes cheaper to upgrade electrical service before install

5. Shop for seasonal deals — many HVAC suppliers offer discounts in spring/fall

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Section 8: Is a Full HVAC Upgrade Worth It?

Many homeowners ask: “Should I just replace my furnace, or upgrade the whole system?”

Here’s my advice:

• If your AC is old or inefficient, a combined replacement may save money over time.

• If your ductwork is in poor shape, replacing it along with the furnace ensures efficiency.

• Energy savings from pairing a new furnace with a high-efficiency AC (like the Goodman 3-Ton 14.5 SEER2 R-32 bundle) may offset higher upfront costs within 5–7 years.

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Section 9: Final Thoughts from Jake Lawson

Replacing an electric furnace can feel complicated, but understanding electric furnace cost, cost of electric furnace replacement, and new electric furnace cost makes the decision easier. Key takeaways:

• Size the furnace correctly — bigger isn’t always better

• Factor in installation complexity and ductwork condition

• Compare furnace-only replacement to full HVAC replacement

• Use reliable brands and consider energy efficiency for long-term savings

For homeowners looking for a cost-effective and reliable heating solution, pairing an electric furnace with a modern AC system like the Goodman 3-Ton 14.5 SEER2 R-32 bundle provides comfort, efficiency, and long-term value.