Understanding Furnace Energy Efficiency (AFUE)

When it comes to furnaces, energy efficiency is a big buzz phrase. In the furnace world this is rated using an Annual Fuel Utilization Efficiency (AFUE) rating. The rating reflects a percentage that will convert the fuel directly into heat. For example, if the AFUE rating is 85, then 85% of the fuel used will be felt as heat in your home.

How High Do You Want to Go?

The higher the AFUE rating, the more efficient your furnace will run, but there is more to consider when upgrading your furnace. Furnaces that are more efficient are also more expensive, and they will take time to “pay for themselves” via your heating bills. If you’re staying in your home awhile, chances are it will be worth it to get the higher rated furnace even with the the initial upfront costs.

There are also limits to how low you can go, legally. Back in the early 70s, most furnaces on the market sat at around 65%, but this would not be appropriate today. Today, the law requires that new gas furnaces have an AFUE of at least 80%. Advocates of high AFUE ratings are calling for the minimum to be raised even higher in some areas of the country. Top of the line new furnaces on the market can have AFUE ratings as high as 97%.

Where You Live is a Consideration

The colder it is where you live, the more getting a furnace with a high AFUE rating will be cost effective.  In Colorado, it gets relatively cold in the winter, and a higher efficiency will likely be worth it. Those who live in Texas or Tennessee might need more time to be paid back for that initial investment.

Rewards of Efficiency

Installing a new furnace is a big upfront expense, but reputable contractors such as Indoor Air Quality, Inc. in Colorado have financing options for qualifying applicants to make the transition easier. Xcel Energy also helps by offering cash rebates to those who have a high-efficiency furnace installed by a registered contractor.

Depending on the efficiency and features of the furnace, the rebate could be as much as $320. Customers who use Xcel Energy natural gas can receive $120. To qualify for this $120 rebate, your new furnace needs to have an AFUE rating of at least 95%. Another rebate is available if you are a customer of Xcel Energy Electric Service. If your furnace has an Electronically Communtated Motor, you can get another $100. Those who qualify for both rebates receive a bonus of $100. Each bonus is independent of one another too, so if your new furnace isn’t quite at 95%, you can still qualify for the ECM rebate.

Timing Matters

The rebates from Xcel Energy don’t last forever. The new furnace or boiler needs to be purchased by March 31, 2015 in order to qualify for the rebate.  If you are interested in taking advantage of these rebates, contact Indoor Air Quality today to set-up an appointment.