The answer is yes! Heat pumps can be a cheaper source of heat than gas furnaces.  We say “can be” because both heat pumps and gas furnaces come in models with varying levels of efficiency.  How efficient each one is will affect the side by side comparison.  However, the average heat pump will lower your utility bills when compared to the average gas furnace.  This guide explains why.

Gas Furnace Efficiency

Today’s gas furnaces can be very efficient.  The least efficient models are 80% efficient which means that 80% of the heat created is used in your home while 20% is lost out the flue.  That’s a lot of waste, when you think about it.  These furnaces are fairly inexpensive and so may be cost-effective in warm climates where the furnace isn’t used much and low equipment costs are more important than high efficiency. In cool climates, an 80% efficient furnace will lead to very high utility bills.

High-efficiency gas furnaces are 95% to 98% efficient, a vast improvement over 80%. These furnaces are a better choice for cooler climates and for homeowners who want to reduce their use of non-renewable fuel sources.

Heat Pump Efficiency

When people think of inefficient, costly electric heat they are thinking of space heaters and possibly electric furnaces.  These types of equipment do create expensive heat.  They are 100% efficient – they turn 100% of the electricity into heat – but electricity is quite expensive to make at the power plant.

However, heat pumps DO NOT use electricity to heat – not directly anyway. The do not convert electricity to heat like a space heater. They are powered by electricity, but it is the refrigerant that provides the heat.  All the electricity does is supply power to move the refrigerant through the system. Because of this, they can be more than 100% efficient – much more, in fact.

How Heat Pumps Work

Heat pumps get their name because they pump heat from one location to another.  When heating, they collect heat outside and carry it inside to heat your home.  Refrigerant is the key.  It has the ability to quickly absorb a large amount of heat – even when outside temperatures are as low as 35-40 degrees.

The refrigerant expands in the outside coil of the heat pump and absorbs heat.  The compressor, powered by electricity, pumps the hot refrigerant gas into your home.  It enters the indoor coil in the furnace or air handler where it condenses back into a liquid, shedding the heat in the process.  The indoor coil gets very hot as a result, and the blower fan pulls cool air from your home over it, heating the air and distributing it to the various rooms.

How Efficient Are Heat Pumps?

Today’s heat pumps must be at least 13 SEER for cooling and 7.7 HSPF for heating.  A heat pump with that efficiency level will create about 300% of the heat that electricity alone could create.  The most efficient heat pumps are over 20 SEER and 12.0 HSPF, representing a 500% efficiency rate for the amount of electricity they use.

Now do you see why a heat pump can be cheaper than a gas furnace to heat with?  While electricity is still more expensive than gas, when you factor in the multiplying effect that refrigerant has, it produces outstanding cost advantages for heat pumps.

Cost Savings with a Heat Pump

Heat pumps and gas furnaces both come in models with different efficiency levels.  On average, however, a heat pump will save you 20% to 40% on your utility bills when compared with a gas furnace.  Heat pumps are becoming more popular with each passing year and the energy cost savings they offer is one of the primary reasons for this.

This guide takes a look at the costs involved in replacing an old oil furnace with a new gas furnace.

The Cost of Gas Furnaces

You’ll find that oil furnaces and gas furnaces are comparably priced, though the most expensive gas furnaces cost more than the most expensive oil furnaces because they offer more features.  But for the same money, you’ll get a gas furnace that is more efficient and one that offers greater home comfort.  For example, oil furnaces have single-stage burners but many gas furnaces offer 2-stage burners, one of the keys to creating balanced, comfortable temperatures throughout your home.

Depending on the size furnace you need, the efficiency level you choose, and the features you want it to have, your gas furnace will cost $1,000 to $4,500 for the furnace. The average cost for just the gas furnace is about $2,400.

The Cost of Furnace Installation

Standard installation of just a furnace will cost, on average, $2,200.  If the job is a simple one, such as installation in a first-floor utility closet, it might cost less.  If the job is tough, such as installation in an attic or cramped crawl space, it might cost more.  If you’ve got good DIY skills and can remove the old furnace first, that will reduce your costs for installing the new one.

Furnace Installation Extras

It’s very likely that when you replace an oil furnace with a gas furnace you’ll have to change the furnace plenum.  The plenum is the sheet metal that connects the furnace to the duct work.  Plenums cost, with installation, about $250.

The venting flue for the furnace may also need to be replaced.  If the same pathway can be used through the roof, the cost will be less than $200.  If the new flue needs to be larger, or be run out the side of the house, the cost will be higher.  Typically, the old path for the flue can be used.

The last extra expense is gas line. The cost of running gas pipe to the furnace inside your home will cost $100-$300 depending on the amount of pipe and the difficulty of the job.

The larger cost may be tapping into the natural gas line.  Some utility companies charge $1,000 or more to run a line connecting your home to the gas line that runs along the road.  Check with your local natural gas provider about their fees before you start the project so you know what to expect. If you switch to a propane furnace, the cost of running line from the tank to your home will be considerably less than $1,000 in most cases.

Total Cost for Replacing an Oil Furnace with a Gas Furnace

The cost of the furnace and basic installation is going to be very comparable whether you choose oil or gas.  The average cost of a furnace and installation is under $5,000.

Switching the fuel source from oil to gas is where the added expense comes in.  For sheet metal work, gas line, venting and connection, your extra costs will range from $500 to $2,000, possibly more depending on the cost of connecting to the gas supply.

Work with your furnace contractor to determine what your fuel cost savings will be for a typical heating season.  Estimate how long it will take a gas furnace to pay you back for the extra expense.  That will help you decide whether it makes sense for you to replace your oil furnace with a gas furnace.  For most homeowners, the switch makes good economic sense.  In addition, having a more comfortable home with a gas furnace is an attractive incentive to make the change.

In this Carrier gas furnace troubleshooting guide you’ll learn what to look for if your furnace won’t come on or isn’t working properly.  Carrier gas furnaces have a very good service record in general but things can go wrong on occasion.  This guide will help you solve the problem quickly if possible or let you know when it’s time to contact a furnace professional for service.

Carrier Gas Furnace Troubleshooting Step by Step

1. Check the Thermostat: Sometimes the thermostat gets turned off or the setting changed by accident.  The truth is, many homeowners have thought their Carrier furnace wasn’t working but all they needed to do was to turn on the system or turn up the heat. This can easily be overlooked.

2. If the system is on is set at a point above the room temperatures, turn the system to fan mode. Check the circuit breaker for the furnace and the on/off switch on the furnace.  If the circuit has been tripped, check the control board of the furnace before resetting the circuit.  If the board has obvious burn marks, indicating electrical malfunction, call for repairs.  Check for obvious loose wiring.  If everything seems to be okay, reset the circuit.

If at this point your Carrier gas furnace isn’t working, the problem is most likely the thermostat, furnace control board, blower motor or the run capacitor. If the thermostat is old or a cheap version, you might consider replacing it to see if that works.  Or you can remove the cover or loosen it from the wall to check for loose or damaged wiring that may indicate the problem.

3. Check the condensate pump, if your furnace has one. If the reservoir is full, then the pump may need to be replaced or the wiring to it tightened.  If the wiring is tight but the pump won’t come on, it probably needs to be replaced.

4. If the furnace has a standing pilot, check to see that it is lit.  If the pilot is lit and is touching the thermocouple, then the thermocouple is very likely your problem. Relight the pilot if it has gone out.

If there’s no pilot light, does the hot surface igniter come on and glow?  If not, it may need to be replaced.

5. Next, listen for the draft inducer motor.  This motor should start before the burner fires.  If it is not running, it may need replacing, or this may indicate a problem with the control board. If it is running but the furnace won’t fire, the flue could be blocked or the limit control might be worn out and need to be replaced.

6. If everything checks out to this point but the burner won’t fire, the problem is likely the gas valve.  It may need to be cleaned or replaced. Make sure the gas line hasn’t been turned off by accident.

7. If the furnace fires but won’t stay lit, the flame sensor may need to be cleaned or replaced, or the furnace control board could be bad. If you’re Carrier gas furnace is a condensing unit – a high efficiency furnace – it may be that the condensate pump is bad or that the trap in the condensate drain is filled with sediment. If the drain trap can be accessed, check for debris and clear any that is found.

8. If the furnace fires, the blower should come on within a few minutes.  If it doesn’t, the motor may be bad or the run capacitor may need to be replaced.

Conclusion

As you walk through this Carrier gas furnace troubleshooting guide, the source of the problem might be identified or at least narrowed down.  You may be able to fix the problem yourself.  If not, call a professional furnace technician.  Your diagnostic work will give you an idea of what may be wrong and will help you discuss the problem with the technician.  The more knowledge you’ve got about the cause of your furnace’s malfunction, the more you’ll be in control of the decision-making about repairs.  You won’t have to simply turn it over to a repairman and hope you aren’t getting ripped off!

Our Top Rated Oil Furnaces 2012 list is a good place to start your search for your next furnace.  For criteria, we focused on quality, reliability and value.  In other words, the oil furnace must be built with quality components that will give it a durability you can trust. The furnace must be a good value for the price as well.  see our oil furnace reviews of these models to get more details on the ones you are interested in.  They are part of our HVAC reviews that let you research system components as you decide which ones are right for your home. We list the best oil furnaces for 2012 by their efficiency. Energy Star qualifying models are noted.

Top Rated Oil Furnaces 2012

1. Bryant Preferred Model OVM Oil Furnace

86.6% Efficient: Energy Star

This is Bryant’s best oil furnace and one of the most efficient you can buy.  It will help you reduce fuel costs when replacing an older oil furnace, perhaps by as much as 25%.  The Bryant Preferred OVM furnace is equipped with a variable-speed blower which will optimize indoor comfort by evening out temperatures and preventing blasts of unheated air when the furnace first comes on.

Built with high-quality components, this is a furnace that should give you 20+ years of reliable service and minimal repairs. This is a multipoise model that makes it easy to install anywhere, for upflow, downflow or horizontal flow.

2. Carrier Performance Model OVL Oil Furnace

86.6% Efficient: Energy Star

This is another high-efficiency oil furnace you can count on to reduce fuel costs while keeping your home very comfortable throughout the heating season.  That makes the Carrier Performance OVL a cost-effective choice for homes in cold climates. You’ll pay more for the furnace than for less efficient Carrier models, but the cost savings will start paying you back immediately.

The ECM variable-speed motor reduces electricity use while the flue-silencing baffles reduce noise output.  This is also a 4-way multipoise furnace that offers plenty of installation options.

3. Ruud ROLA Lowboy Series Oil Furnace

85.9% Efficient: Energy Star

If you want to install an oil furnace in a crawl space with limited room, the Ruud ROLA Lowboy is a good choice.  It’s very energy-efficient and built of high-quality parts.  It uses top-rated Honeywell controls and features front-port cleanouts that make maintenance very easy, even in tight locations. This furnace offers sizes up to 175,000 Btu and the multipoise design doesn’t limit you to crawl spaces for installation.

4. Ruud ROCA Highboy Series Oil Furnace

85.9% Efficient: Energy Star

This shares many of the same components as the Ruud Lowboy furnace and demonstrates good quality and durability.  The Riello Carlin burner in this model is one of the top-rated burners in the industry.

This is a dual fuel compatible oil furnace.  That means you can install the Ruud ROCA Highboy as part of a split system with an electric heat pump.  Heat pumps are more energy-efficient in cool weather but don’t work well in very cold weather.  The options will allow you to save money on your heating bill throughout the season.

5. Carrier Performance VS 80 Model 58VMR Oil Furnace

83.5% Efficient

This Carrier Performance oil furnace is a very good value and is built with quality parts.  The efficiency level will help you control fuel costs too.  It’s equipped with a Riello burner and a stainless steel secondary heat exchanger for outstanding durability. The controls and the variable-speed blower in the VS 80 model 58 VMR allow you to install a 2-stage air conditioner in a split system with this furnace for added comfort in warm months.

6. Bryant Preferred 80 Model 374RAN Oil Furnace

83.5% Efficient

This is an affordable yet efficient oil furnace from an industry leader.  The multi-speed blower offers greater temperature balance throughout your home and the flue silencer reduces operating noise.  This furnace can be installed virtually anywhere, with Lowboy construction also available.

7. Dave Lennox Signature Collection Model Number 023V Oil Furnace

83% Efficient

This oil furnace is part of Lennox’s top line of HVAC components, the Signature Series.  It uses the top-rated Beckett Flame Retention burner with a rolled steel heat exchanger for maximum durability. The alumina-silica combustion box is also of the highest quality. Electricity use is reduced with the use of an efficient oil pump and ECM variable-speed blower.

8. Ducane Upflow Model Number RLUF80C Oil Furnace

83% Efficient

The heart of this quality oil furnace is the ceramic, sealed combustion box and the high-quality Beckett Flame Retention burner. This Ducane oil furnace also uses top-rated Honeywell controls for precise heating throughout your home. Large, easily accessed cleanout ports add convenience to the quality of this unit.

9. American Standard Platinum XV Oil Furnace Freedom 80 Comfort-R Variable-Speed Oil Furnace

82.7% Efficient

American Standard is yearly one of the top-rated brands in consumer reviews.  This oil furnace performs very well, though it isn’t as efficient as some of the others.  The American Standard Platinum XV offers a durable ceramic fiber combustion box, Comfort-R humidity reduction system when the furnace is used with a central air conditioner, and enhanced burner technology.  This furnace can be monitored and controlled with a smart phone.  You’ll save on heating costs when you turn the furnace down when you’re away and turn it back up on your way home.

10. Trane XP80 Oil Furnace

82.7% Efficient

As a brand with one of the top service records in the industry, Trane belongs on the list.  The Trane XP80 uses the Beckett burner that can be easily cleaned and adjusted while offering a very reliable flame quality for maximum efficiency. A 4-speed motor provides better indoor comfort than single-speed models. This is a durable oil furnace that should deliver 20 years or more of reliable performance.

Summary

Which of these oil furnaces is right for your home?  It depends on how much of a premium you’re willing to pay for higher efficiency.  If you intend to be in your current home for 7-10 years or longer, it will make sense to purchase the most efficient model you can afford.  Our oil furnace reviews will allow you to find the right HVAC equipment for your home.  This Top Rated Oil Furnaces 2012 list is a good place to begin your search for your next furnace.

The models that made this Top Rated Gas Furnaces 2012 list offer superior quality and outstanding durability.  Those are the chief characteristics that put them on our list.  We didn’t focus on efficiency because consumers have different needs in this category.  While those in northern climates will get their money’s worth from a high-efficiency gas furnace, those in moderate and warm climates might find a less efficient furnace is more cost-effective.  And some who plan to sell their homes in the next 5 years won’t want to pay for a high-efficiency furnace they won’t get their money out of.

For these reasons, you will find a range of efficiency levels on this list of the best gas furnaces for 2012. It starts with the most efficient and goes down from there, helping you find the one that makes sense for your climate, budget and long-term plans.

Top Rated Gas Furnaces 2012

1. Carrier Infinity 96 Gas Furnace

96.6% Efficient: Energy Star Rated

This is the most energy-efficient furnace on our list.  It will help you reduce heating costs by up to 35% when it replaces an older gas furnace.  This 2-stage furnace with a variable-speed blower will keep your home comfortable all winter. The energy efficiency of the Carrier Infinity 96 makes it very popular with those who want green technology for their home.

2. American Standard Platinum ZV Furnace Freedom 95 Comfort-R Variable-Speed, Modulating Communicating Furnace

95% Efficient: Energy Star Rated

American Standard has the highest-rated lineup in the industry and this is one of their best models. The Platinum ZV is also a modulating furnace, running between 40% and 100% of capacity, that offers a more comfortable home including reduced humidity when in cooling mode.

This is a top choice for enthusiasts of green technology because of its high efficiency but also because the TAM telephone Access Module option allows you to monitor and control it from your cell phone. You can turn it down when you leave home and only turn it up in time to make your home warm when you get there, reducing wasted heat.

3. Bryant Evolution Series 95S with PerfectSense Model 335CAV Gas Furnace

95% Efficient: Energy Star Rated

This model is part of a new generation of modulating gas furnaces that are offering the most precise indoor climate control currently available. The Bryant 95S PerfectSense features a modulating gas valve that matches the need for heat at the moment. It employs lower-capacity, longer cycles to produce more balanced temperatures throughout your home.  It is aided by a variable-speed blower to maximize comfort while reducing temperature fluctuations and hot spots.

The Bryant Evolution 95S model 335CAV maximizes efficiency with dual heat exchangers and has a fan-on mode that increases air filtration and helps reduce humidity when working with a central AC in the summer.

4. Rheem Prestige Series Communicating Modulating Upflow Equipped with the Comfort Control System and Contour Comfort Control RGFE Gas Furnace

95% Efficient: Energy Star Rated

Rheem is a top 5 brand in consumer ratings even if it doesn’t get the press of Carrier, Trane or Lennox.  The Rheem Prestige RGFE furnace certainly enhances their reputation in the industry.  This is a modulating furnace with a slow-opening gas valve and variable-speed blower that eliminates blasts of cold air at the beginning of the cycle and helps maintain temperature balance throughout your home.

5. Lennox Elite Series G61V High-Efficiency Gas Furnace

95% Efficient: Energy Star Rated

This isn’t Lennox’s most efficient model.  The modulating Dave Lennox Signature Collection SLP98V is.  But we think this is the best all-around furnace Lennox makes.  The Lennox G61V furnace is efficient, durable and reasonably-priced.  It uses a 2-stage burner with a variable-speed blower which is enough to give you outstanding control of your home’s comfort level. The Duralok heat exchangers are among the top-rated in the industry.

6. Amana AMVC95 95% AFUE Gas Furnace

95% Efficient: Energy Star Rated

Amana does very well in consumer ratings of gas furnaces and the AMVC95 gas furnace is the brand’s top of the line. It is a 2-stage furnace with a variable-speed blower. The Million-Air heat exchanger is the most durable there is, made from stainless steel and rated to handle one million cycles.

7. Trane XR95 Gas Furnace

95% Efficient: Energy Star Rated

There are many very good Trane gas furnaces to choose from, some with more features than this one has.  The Trane XR95 furnace made the list because it is the most efficient single-stage model on the market.  This is a good choice for those who value high-efficiency and lower utility bills but who don’t need the performance of a two-stage furnace.  The tradeoff is a lower price and outstanding value.

8. Carrier Comfort 92 Gas Furnace, a.k.a. Carrier Comfort 58MXB Furnace

92% Efficiency: Energy Star Rated

Carrier makes a range of very good gas furnaces and so placing a second furnace on this list is no surprise.  The 2-stage Carrier Comfort 58MXB gas furnace combines good efficiency, a lower price point, and a quality build. A 2-stage burner and a single-speed fan offer good comfort, but not top of the line.  It is backed by the same excellent warranty that Carrier Infinity furnaces are covered by.

9. American Standard Silver SI 90 Furnace

80% Efficient: Not Energy Star Rated

High efficiency furnaces are not the most cost-effective choices for homeowners in warmer climates, though they may choose them for their green technology.  The Silver SI 90 from American Standard offers quality components and excellent durability at a lower price point.  Single-stage heating is combined with a multi-speed blower to provide good comfort control at an affordable price.

10. Payne PG8MEA Gas Furnace Price 80% AFUE

80% Efficient: Not Energy Star Rated

The Payne PG8MEA offers bare bones quality.  It’s a single-stage, single-speed furnace with excellent durability.  You can rely on it to provide basic heat when you need it, and the cost is very affordable. It’s a good choice in warm climates and is also popular for installation in vacation homes, cabins and workshops where a high-efficiency furnace isn’t needed because use is limited.

Summary

Which of these furnaces on our Top Rated Gas Furnaces 2012 makes the most sense for your home?  If you want premium comfort and are willing to pay for it, a modulating furnace is very nice. If you want efficiency without the higher cost of modulating performance, you’ve got choices too.  For homeowners in warmer climates, or those looking for a part-time furnace, there are 80% efficient choices to meet your needs.  This list of the best gas furnaces for 2012 is a good place to start your search. See our gas furnace reviews for individual HVAC reviews of these furnaces, and many more.

With the heating seasons here, homeowners are asking, “what is new with oil furnace for Winter 2011 & 2012?”  If you’re considering purchasing a new oil furnace this season, there are a couple of new trends to be aware of that might help you save money and make your home more comfortable.

Higher Efficiency Oil Furnaces

In the last few years, there has been an increased emphasis on energy efficiency due to the high cost of fuel.  Oil furnace manufacturers are responding by producing more furnaces that qualify as Energy Star models.  While oil furnaces remain less efficient than gas furnaces, the improvement will help you control your fuel bill in the coming heating season.  If you want to look at some of the most efficient oil furnaces on the market, see our HVAC reviews and start with these:

1. Carrier Comfort model OBL oil furnace: At 86.6% efficient, this is one of the least expensive oil furnaces to operate.  It’s of the highest quality too. Another Energy Star oil furnace from Carrier is the Carrier Performance Model OVM oil furnace with 85.2% efficiency.

2. Ruud ROLA Lowboy Series oil furnace: Another 86.6% efficient model, this is a good fit for homes that need the compact lowboy design and want to cut energy costs.

3. Bryant Preferred Model OVM oil furnace: Very similar to the Carrier models, it costs a bit less and offers the same 86.6% efficiency.

Dual Fuel Oil Furnaces

A few manufacturers are now making dual fuel oil furnaces. What this means is that they can be used in a split system with a heat pump.  The heat pump will produce more economical heat than the oil furnace.  The problem with a heat pump is that it will stop being effective when temperature fall into the 30s, so can’t be used in northern climates.  With a dual fuel system, the heat pump does the work in cool weather and the oil furnace takes over in very cold weather.  Adding a heat pump to a split system instead of a central air conditioner will immediately reduce your total bill for the heating season.  If you are interested in a dual fuel oil furnace, a good one to take a look at is the Ruud ROCA Highboy Series oil furnace.  This is an Energy Star oil furnace with 85.9% efficiency.  Add a heat pump with a 9.0 HSPF heating efficiency rating and you’ll have the best of both worlds, depending on the weather.

High Quality Oil Furnace Burners

The burner is the heart of an oil furnace.  For years, oil furnaces were considered a dirty form of heating, leaving residue behind them that could be seen on walls near heat registers and other places.  Most of today’s top oil furnaces use outstanding burners that burn very efficiently and cleanly.  The two brands that lead the industry are Beckett, with their Beckett Flame Retention burner and the burners from Riello Carlin.  These brands are also the most dependable and durable you’ll find. See our oil furnace reviews for models that use these dynamic burners.  Just a few of them are the Dave Lennox Elite Series 023 oil furnace, Armstrong Air 80 Highboy LUF80C57/72D12 oil furnace, Carrier Comfort Model OBL oil furnace, Ducane Upflow Model Number RLUF80C oil furnace and the Ruud ROCA Highboy Series oil furnace.

Summary

All of us are concerned about the high cost of energy.  The furnaces we list in this oil furnace guide will help you reduce your energy bills this season and well into the future.  Choose an efficient, high-quality oil furnace and have it installed by a qualified contractor who can keep it maintained every 1-2 years.  You’ll get top performance and efficiency from it in the years ahead when you do.

Tips for Finding a Qualified Gas Furnace Installer

These tips have proven very effective when they are all put into practice.  They will help you find a reliable, skilled professional you can trust with the job.

1. Get Recommendations from Friends: Ask others what heating companies they’ve used in the past and whether or not they did a good job.  Ask about the quality of the work and the fairness of their rates.  Put together a list of 4-6 furnace installers to consider further.

2. Check Online Reviews: Angie’s List or reviews on Google, Yahoo or other sites can be very helpful.  The real-life experiences of the friends you asked, combined with the reviews of others who have used the furnace company, are much better than going by the company’s ads or website.  You want to know what homeowners just like you have to say about the company.  Use these reviews to narrow your list to 3-4 furnace installers.

3. Call The Companies on your List: Ask to speak to the owner or manager.  Have a series of questions ready.  These are good ones to start with: How long have you been in business in this area?  What is your training?  Are your crews trained too?  How long have your installers been working for you?

NATE stands for National Association of Technician Excellence.  It is a testing organization that is used throughout the industry to certify furnace installers.  NATE-certified technicians have demonstrated competency to install any furnace.  Ask about NATE certification.

4. Get 3 Written Estimates: In order to find the best pricing from competent furnace contractors, it is important to get multiple competitive estimates.  Only request them from furnace installers you would be comfortable with installing your furnace. Then select the one with the best price.

Summary

This process may take a week or two to complete but it is worth it.  The long-term reliability and energy-efficiency of the furnace relies upon proper installation.  If you are in a hurry, a faster method is to request 3 free estimates online.  Every installer in the service is a qualified contractor that has been prescreened for quality control.  Use the HVAC reviews on this site to find a high-quality gas furnace.  Then find a high-quality furnace company to handle the installation. You’ll get your money’s worth from both when you do.

Tax Credit Qualifying Furnaces

A common misconception is that all Energy Star furnaces qualify for the tax rebate.  This isn’t the case.  The guidelines exceed the Energy Star minimum 90% AFUE (annualized fuel usage efficiency).

Gas furnaces must be at least 95% efficient to qualify. Furnaces with this level of efficiency are made by almost every manufacturer.  They are more expensive than 90% or 80% efficient furnaces and are ideally suited to cooler climates.  In warmer climates, choosing a less efficient furnace may be more cost-effective when weighing equipment costs versus energy costs, even with the potential tax credit factored in.  If winters are cold where you live, choosing a qualifying furnace will cost less due to the credit and will save you money all heating season with lower energy bills.

Other Federal Energy Tax Credit Qualifications

The gas furnace must be installed by the end of 2011.  It must be installed in your primary residence.  Rental properties or vacation homes do not qualify.  The home must be an existing home.  Furnaces in newly constructed homes do not apply.

Amount of the Federal Energy Tax Rebate

The amount of the tax credit is $150 for a gas furnace.  In recent years, the amount has been a percentage but the rule was changed for this year to a set amount.  Keep in mind that this rebate is a tax credit, not a reduction.  As a tax credit, the $150 comes off the top of your tax liability rather than simply reducing the amount on which you pay taxes by $150 – as with a deduction.

How to Apply for the Federal Tax Credit for Gas Furnaces

You must complete the 2011 version of IRS form 5695 and file it with your 2011 tax return.  Then, on the 1040 form, the amount of $150 must be entered on the proper line showing the deduction.  Be sure to keep your receipt for the furnace along with the manufacturer’s certification statement listing the energy efficiency level of the furnace.  These documents don’t have to be filed with your tax return but should be kept in case the tax rebate is questioned.

Summary

While the tax rebate for 2011 isn’t as large as in recent years, it may still be a good idea to purchase and install a qualifying furnace.  This is especially true for homeowners who use their furnace heavily.  In addition, some state and local tax credits are available, so check with your local taxing authorities.  Many utility companies are offering rebates on energy for the installation of qualifying furnaces too.

Note: If you work on your own furnace, turn off power to the furnace at the electrical box.  This is the only way to ensure that accidental shock won’t occur.

Furnace Cleaning

Cleaning the Burner Assembly:  The furnace’s burner will get dirty through the course of a heating season.  The buildup of dirt and grime can cause it to lose as much as 30% of its efficiency.  That’s like a 95% furnace running at 65%.  That’s a lot of wasted money.

Turn down the thermostat and shut off the gas at the valve.  Remove the assembly from the unit and clean it thoroughly.

Cleaning the Heat Exchanger: Once the burner assembly is out, you’ll have access to the heat exchanger – where heat is transferred from combustion gases so that it can be dispersed into the home.  Clean the heat exchanger thoroughly.

Clean the Blower Fan: Most furnaces have a circular blower fan, sometimes called a squirrel cage assembly.  The cups on the fan that move air can  become clogged with dust, causing them to be ineffective.  Using a vacuum cleaner and gentle brush, remove the dust and debris.

Clean the Indoor Coil: If your furnace system has an air conditioner as part of it, the indoor coil will be installed in or on top of your furnace.  The coil can become covered with debris, greatly reducing its efficiency.  Use the gentle brush and vacuum to clean the surfaces of the coil.  While you’re cleaning the coil, make sure the drain pan is clean and the drain tube isn’t plugged.  Clean any issues you find.

Furnace Maintenance

Oil moving parts: Many furnaces now have permanently lubricated blower motors.  Older furnaces may still need to be lubricated.  Check your manual to determine if your furnace needs to be oiled.  If so, locate the oiling ports on the blower assembly and apply 10-15 drops of electric motor oil.  This actually needs to be done just every 2-4 years.

Furnace Inspection: It is important to check the burner assembly and the heat exchanger for signs of corrosion.  Combustion produces water as a byproduct and over time it may rust older furnaces.  A small amount of rust won’t adversely affect the furnace.  Significant corrosion is a sign the heat exchanger is dangerous.  Also check the heat exchanger for cracks.  If significant corrosion or a crack is present, replace the heat exchanger.  Since that is an expensive repair, you may want to get estimates for a new furnace.

Summary

If you enjoy home projects and have good capability, you may want to maintain your own furnace.  Another option is to hire a qualified contractor to do it the first time.  Watch carefully how the furnace is maintained – consider videoing the process.  This will allow you to handle the maintenance in years to come.  A well-maintained furnace will run as efficiently as it should.  It will also have fewer repair issues and minor issues can be caught during yearly furnace maintenance before they turn into major, expensive repairs.

High Efficiency Gas Furnaces

In the 1970’s the country went through the oil crisis and the price of gasoline skyrocketed.  Today, with the production of natural gas and propane hindered by regulation and restrictions on new exploration, the industry is experiencing a similar crisis.  The result is the high, uncertain cost of energy for gas furnaces.

The natural result is that gas furnace manufacturers are emphasizing efficient furnaces. The recent push to more efficient models is also fueled by the commitment of many homeowners to reduce their greenhouse gas emissions.  As people choose green technology for their homes, higher efficiency gas furnaces are selling very well.

Some of the furnace models getting increased attention are the Dave Lennox Signature Collection SLP98V gas furnace with 98.2% efficiency, the Carrier Infinity 96 with 96.6% efficiency, the American Standard Gold ZM with 96.7% efficiency, the Goodman GCVM 96 with 96% efficiency, the Bryant Evolution Plus 98 with 97% efficiency, and the Amana AMVM96 with 96% efficiency.

Modulating Gas Furnaces

Many of the top furnace makers are now producing a modulating gas furnace.  If you’re not familiar with the term, modulating means that the gas valve adjusts the flame to burn anywhere from 40% to 100% capacity.  Until recently, 2-stage gas valves/burners produced the most comfortable homes.  Now modulating furnaces have surpassed them in precise climate control.  Sensors respond to the temperatures outside and inside and signal the gas valve to heat at the exact level that will keep temperatures in the house even and balanced.  These gas valves can make adjustments are slight as .5 percent increments.

With a modulating gas furnace, you experience very little temperature fluctuation.  Heating cycles are longer, and since they run at lower capacity, they are also quieter.  The heating is gentler.  With longer cycles, an installed humidifier in a modulating furnace will also do a better job keeping air at a comfortable level of humidity.

Some of the best modulating furnaces include the Carrier Infinity ICS, the Lennox Signature SLP98V, the Coleman Echelon CP9C, the York YP9C, the Maytag M1200 iQ Drive, the Rheem Prestige RGLE, and the American Standard Platinum ZV. These furnaces cost more than most but they offer superior indoor comfort and most of them are very efficient, reducing gas bills throughout the season.

Gas Furnace Air Quality Products

The Environmental Protection Agency has identified pollution in homes as a top 5 pollution concern!  Today’s new houses are built very tightly and encased in house wrap so that very little natural exchange of air occurs.  While this makes the home more energy-efficient, it also prevents a house from “breathing.”  Air within the home keeps getting more stale, with very little influx of fresh air.

Gas furnace manufacturers are responding by creating more air purifying products like the Trane CleanEffects whole-house air purifying system.  The HVAC industry as a whole is emphasizing an impressive new generation of whole-house ventilators that exchange stale, polluted air for fresh outside air.  In cool climates, Heat Recovery Ventilators (HRV) are most popular and in other climates, Energy Recovery Ventilators are encouraged.  An HRV uses a heat exchanger to transfer heat from air being sent outside to air being drawn into the home, preheating it.  ERV models are very similar.  In summer, they pre-cool the incoming air with the air being exhausted and in the winter, they preheat incoming air.

The energy recovery aspect helps to reduce the energy waste somewhat inherent in the systems.  The key, for those who have them installed, is that these units keep a steady supply of fresh air entering the house.  The fresh air is drawn into the ductwork and is distributed throughout the home by the furnace blower fan.

Summary

If you are in the market for a new gas furnace for the 2011-2012 heating season, take a look at high efficiency furnaces and those with modulating burners. Many top manufacturers are now making them.  You’ll find reviews of many high-efficiency furnaces, including modulating models, in our HVAC reviews.  If you want fresher air, talk to a qualified contractor about heat recovery ventilators and energy recovery ventilators and how they may improve the indoor air quality (IAQ) in your home.  These trends are here to stay with the increased desire of homeowners to create energy-efficient, comfortable, healthy homes.