High-Efficiency Furnaces: Most Energy-Efficient Furnaces for Your Home

4 minute read • Last update August 2024

graham lumley
Written by: Graham Lumley
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In this article

    What is the best home furnace for energy efficiency?

    The best energy efficient furnaces are those with the highest AFUE rating (Annual Fuel Utilization Efficiency), or how effectively they convert energy into warm air to keep your home comfortable during the colder parts of the year. The best furnaces will have an AFUE rating of 98.5%.

    Aside from a high AFUE rating, reliability and durability should be your top priorities. While most manufacturers offer high-efficiency options, not all are equal in quality. So, buying each component of your home heating and cooling system from a reputable brand is recommended to ensure long-term performance, minimal maintenance, and peace of mind. You may also want to consider looking for models with additional ratings and technology features, such as:

    • ENERGY STAR certification – ENERGY STAR certified furnaces meet strict energy efficiency guidelines set by the Environmental Protection Agency (EPA). 

    What are high-efficiency furnaces?

    The most energy-efficient furnaces utilize advanced technologies and design features that maximize heat output while minimizing energy use. They are classified based on their AFUE rating, which measures the percentage of fuel that’s converted into usable heat. Furnaces with higher AFUE ratings are considered more efficient.

    What is AFUE?

    AFUE stands for Annual Fuel Utilization Efficiency. AFUE ratings are expressed as a percentage, indicating the portion of fuel utilized for heating purposes, with the remainder being lost as waste through exhaust gases. For example, a gas furnace with an AFUE rating of 95% converts 95% of the fuel it consumes. So, the best energy-efficient furnace for your home will typically be among those with the highest percentage rating. 

    Aside from energy efficiency, AFUE plays a significant role in determining how much homeowners save. Higher ratings generally result in lower energy bills since they waste less fuel during operation. Additionally, furnaces that meet established efficiency standards may qualify for incentives like the energy-efficient furnace tax credit or the energy-efficient home improvement credit. 

    Electric furnace vs gas furnace

    Increased efficiency models are widely available using both gas and electric fuel sources. However, there are a few notable differences regarding optimum efficiency, operating costs, and environmental impact.

    An energy-efficient gas furnace typically boasts higher efficiency ratings than an electric model and is likely to be more cost-effective to operate, especially in regions with lower natural gas prices. However, the flip side is that, at least in theory, gas models produce on-site carbon emissions, whereas their electric counterparts do not. However, it’s worth noting that the environmental impact of even the most energy-efficient electric furnace will depend on the source of electricity generation in your area.

    Pros and cons of high-efficiency furnaces

    It’s essential to weigh the advantages and disadvantages of high-efficiency gas furnaces carefully before making changes to your existing heating and cooling system. Here’s a breakdown of the pros and cons to help you make an informed decision.

    Advantages of high-efficiency furnaces 

    • Increased furnace efficiency – Most energy-efficient furnaces achieve AFUE ratings of 90% or higher.
    • Lower heating costs – Less energy waste equates to long-term savings for homeowners.
    • Enhanced comfort – Advanced features result in more consistent heating.
    • Environmental benefits – Lower energy consumption equates to fewer emissions and a lower carbon footprint.
    • Potential for incentives – The initial cost can often be offset by government or utility-company-funded HVAC tax credits. 

    Disadvantages of high-efficiency furnaces

    • Higher purchase cost – Energy-efficient models typically have a higher price tag than standard models. 
    • Compatibility issues – Newer, more efficient models may be incompatible with your existing HVAC system or infrastructure.
    • Complex installation – New heating equipment may require modifications to existing ductwork or ventilation systems. 
    • Professional maintenance costs – High-efficiency furnaces may require more regular maintenance by a licensed professional than other alternatives. 
    • Longer payback period – Depending on energy prices and usage patterns, the payback period for a new gas furnace may be longer than that of standard-efficiency models.

    Common features of the most energy-efficient furnaces

    Aside from the energy-efficiency factors and rating systems we’ve already mentioned, there are some additional features that could make a considerable difference in terms of convenience and operation. Let’s take a quick look at the primary contenders.

    Variable-speed blower motors 

    Variable speed motors adjust their speed based on heating demands, providing more precise temperature control, improved energy efficiency, and quieter operation.

    Modulating gas valve

    Modulating valves allow furnaces to adjust the amount of fuel they burn in response to heating requirements, resulting in consistent temperatures, reduced energy consumption, and enhanced comfort.

    Electronic controls 

    Furnaces equipped with electronic controls offer advanced programming options, diagnostic capabilities, and system monitoring, ensuring efficient operation and easier troubleshooting.

    Dual heat exchangers

    The secondary heat exchanger maximizes the amount of heat transferred from the combustion process into the air circulated throughout your home, increasing efficiency and reducing fuel consumption.

    Advanced filtration

    Furnaces with advanced filtration systems (or compatibility with high-efficiency air filters) improve indoor air quality and protect your HVAC system from dirt and debris buildup.

    Zoning capabilities

    Furnaces with zoning capabilities allow for customized heating zones within your home, optimizing comfort and energy efficiency by directing heat only where it’s needed.

    Should I upgrade my furnace?

    Unsure whether it’s time to get a new furnace? Here’s a list of telltale signs indicating it may be time to switch your existing unit for one with better efficiency:

    • Your current furnace requires frequent repairs or experiences recurring issues.
    • Heating output throughout your home is uneven, with some rooms receiving significantly more or less heat than others. 
    • Energy bills start to increase without a corresponding increase in usage.
    • Usual, quiet operation is interrupted by noises like banging, rattling, hissing, or squealing.
    • The furnace struggles to maintain a consistent temperature or cycles on and off frequently. 
    • Frequent pilot light outages or the presence of a rotten egg smell raise concerns about a potential gas leak. 
    • Your older model is approaching or has already exceeded its expected lifespan of 15-20 years. 

    Affordable energy plans from BKVE

    As you can see, investing in one of the most energy-efficient furnaces on the market can help lower utility bills and reduce your carbon footprint.

    At BKVE, we understand the importance of both affordability and sustainability. That’s why we offer a range of energy solutions tailored to meet your needs. Check out our straightforward energy plans and start saving today!

    Written by Graham Lumley

    Graham Lumley, Digital Marketing Manager at BKV Energy, leads digital and traditional marketing strategies, focusing on educating Texans about the state's deregulated energy market. With over 8 years of marketing experience, he creates content to help consumers understand and save on their energy bills, bringing a fresh and dynamic approach to the industry.

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