How Much Money Will I Save On My Gas Bill With a New Furnace?
If you’re thinking of buying a new furnace for your home, you’re likely hearing a lot about efficiency. You may also be wondering what you’re actually going to save on your gas bill. The following article is going to show you is the equation that you can use to figure this out quite accurately.
t’s important to know what efficiency is, or better yet, what it describes. Efficiency is about decreasing waste. You want all of the effort you “Input” into something to be productive, or “Output”. In this case, it’s fuel and you want all of what you burn to be used to heat your home. If your furnace is 80% efficient, then out of 100% of the fuel “Input”, 20% is wasted and 80% is “Output” and heats your home. Most of the waste is lost through the chimney. The higher the efficiency of your furnace, the less you waste. Note that efficiency does decrease over time and that it is important to maintain your furnace to maximize it’s efficiency over that time.
Things You Need To Know…
- How efficient is your furnace now?
- How much of your gas bill is for heating?
How Efficient Is My Furnace Now?
You need to know what the current efficiency of your furnace is so that you can figure out what your new one will save you. It can be difficult to figure this exactly but you can get a fairly accurate estimate by performing some minor calculations
Let’s assume that your old furnace is the common type and is 80% efficient or less. Also, assuming that your furnace is about 20 years old and been at least somewhat maintained. If your furnace is much older and resembling a small car with a standing pilot, you may want to go with 55%. Somewhere in the middle, go with 63%. Again, a percent or 2 will not greatly impact our findings and you can work this with a couple different percentages to see the variation if you’d like.
We suggest that you assume your furnace is more efficient than it is so that you save more than you expect and not the other way around.
How Much of Your Gas Bill is for Heating?
You need to know how much we spend on heating so you can figure out how much you waste and what you’ll save with your new furnace.
On your gas bill there is a chart that shows your consumption over an average time (usually a year or so). To find out how much of your gas bill your furnace is using you will need to eliminate the amount of gas being used throughout the year on the stove, dryer, hot water tank etc… The summer months on the chart are representative of those items since you aren’t using the furnace. Subtract your average summer month gas bill from your winter average gas bill and your will get an average estimated monthly cost of operating your old furnace.
Old style furnace with the metal chimney flue
High Efficiency Furnace with PVC Flue
How much will you save?
The new furnace you are replacing will be 90% or higher efficient. RUUD furnaces installed by Neu-Wave have an average efficiency rating of 92% – 96% meaning that very little of the heat is lost and instead all of the heat is used for heating your home.
Assuming that your furnace is 80% efficient it means that for every $100 you spend on your heating bill, $80 is used to heat your home and $20 is wasted. If your furnace is very old and operates only at 50% – 63% efficiency, this figure will be even higher.
Using the above math, you are saving $12 to $16 per every $100 of your heating bill if your furnace is an average market model 10 to 15 years old and most commonly found in a typical North American single family residence.
If you are living in an older home and your furnace is 20 years old or higher, you are saving an average of $29 to $40 per every $100 you spend on your heating bill (depending on your existing furnace efficiency and the efficiency of the furnace you are installing).
Factor in the above estimate into your average monthly heating bill and you will discover that replacing your existing furnace with the high efficiency furnace does not cost you money but is actually saving your money in the long term.
World-Class Customer Support
We encourage you to talk to us and utilize our extensive expertise for best advice on which package to select from. We have many models and options within our “Good, Better, Best” range of products to choose from depending on your needs, preferences and budget.
Please call us 780- 257- HEAT (4328) to talk to one of our experts.