Understanding paybacks of an energy efficient furnace on your Kansas City home

The winter weather is here and you may have missed getting your furnace cleaned and service. It is better late than never.

Once the HVAC repairman comes, he may discuss with you about upgrading your furnace. You might also be thinking about upgrading the furnace because it is getting old. Whatever the reason, you may want to know if you will recoup the expenses in a new energy efficient furnace. There's actually quite a bit that will go into making that all important decision, and here are some things worth considering.

Understanding paybacks of an energy efficient furnace

Throughout the process of selecting a new energy efficient furnace heating system, and even when considering energy upgrades as discussed below, you'll be faced with the concept of "paybacks." It's an important thing to understand, especially if you're feeling pressured by a salesperson to choose a particular furnace.

Let's say you currently pay the gas company an average bill of $150 a month. That means you pay the gas company $1,800 per year. Now let's say that a new, high-efficiency furnace, along with some upgraded insulation, will heat your home for $80 a month, or $960 a year.

That's a savings of $840 annually. If the new furnace and insulation cost $5,500, it would take you about 6 1/2 years for the savings to pay back the investment of the new energy efficient furnace.

Paybacks aren't difficult to understand, as long as you're able to get the necessary numbers. This is something that your heating contractor and utility company should be able to help you with.

Other items to consider when looking at energy efficiency of your home are the energy efficiency rating of various furnaces, adding extra insulation and adding a heat pump if possible. 

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Blog post written by the Dowell Taggart Team of RE/MAX Premier Realty 

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