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AFUE Furnace Ratings: Why They Matter

Blue paper house with heart cutout next to stacked coins with seedlings, symbolizing home investment.

When it comes to heating your home, efficiency is key. AFUE (Annual Fuel Utilization Efficiency) ratings measure how effectively a furnace converts fuel into heat. This rating is important for homeowners looking to lower energy costs and stay warm. If you’re considering a furnace replacement in Des Moines, IA, knowing the basics of AFUE ratings can help you make the right choice. 

There are several factors to consider when evaluating furnace installation options, including available fuel types and furnace system compatibility.

At Dalton Plumbing, Heating, Cooling, Electric and Fireplaces, Inc., we know what it takes to help you choose a heating system that works efficiently and saves money over time. Understanding the different fuel types available is essential for selecting the most efficient furnace system for your home. Let’s break down why AFUE ratings are so important.

What AFUE rating should you consider when installing a furnace?

When planning a furnace installation, it’s best to choose a unit with an AFUE rating of 90% or higher. High-efficiency models convert more fuel into usable heat, reducing energy waste and lowering utility bills. Older systems with lower AFUE ratings cost more to operate and provide less consistent heating.

What Are AFUE Ratings and Why Do They Matter?

AFUE ratings tell you how much fuel your furnace turns into usable heat. After fuel enters the system, the furnace works by burning it to generate heated air, which is then distributed throughout your home to keep you comfortable during cold weather. The number is a percentage. For example, a furnace with a 90% AFUE rating uses 90% of the fuel to heat your home. The remaining 10% escapes through the exhaust system.

The higher the AFUE rating, the more energy-efficient the furnace. A furnace’s performance is directly related to its AFUE rating and how well it is maintained, regular servicing helps ensure optimal efficiency and consistent delivery of heated air. Furnaces with ratings of 80% or lower are less efficient than modern models, which can reach up to 98%.

Types of Furnaces and Their Efficiency

When choosing a furnace for your home, it’s important to understand the different types available and how they impact your energy efficiency and heating costs. The most common options are gas furnaces, electric furnaces, and oil furnaces, each with its own advantages.

Gas furnaces are a popular choice for many homeowners, especially those connected to the natural gas grid. These systems are known for their high efficiency and reliable performance, often boasting AFUE ratings of 90% or higher. A high-efficiency gas furnace can significantly reduce your energy bills and provide consistent heat throughout the winter, making it a smart investment for long term savings.

Electric furnaces tend to have lower upfront costs and are easier to install, especially in homes without access to natural gas. However, they can be more expensive to operate due to higher electricity rates, and their overall energy efficiency may not match that of high efficiency gas models. Still, with proper maintenance and routine filter changes, electric furnaces can deliver optimal performance and dependable heat.

Oil furnaces are another option, particularly in areas where natural gas isn’t available. While they can provide strong, steady heat, oil furnaces generally have lower AFUE ratings and may require more frequent maintenance. This can lead to higher energy bills and increased upkeep costs over time.

No matter which furnace type you choose, regular maintenance is key to ensuring your system runs efficiently. Simple steps like changing the furnace’s filter, scheduling annual inspections, and keeping components clean will help maintain high energy efficiency and extend the life of your furnace. Homeowners should also be informed about how to maintain their furnaces after installation, as proper care can prevent costly repairs and ensure consistent performance.

How AFUE Ratings Directly Impact Home Efficiency

High AFUE ratings bring several benefits: 

  • Lower Energy Costs: A more efficient furnace uses less fuel, which saves money on heating bills. 
  • Better for the Environment: Less fuel consumption means fewer emissions. 
  • Consistent Heating: Energy-efficient furnaces heat your home evenly and effectively.
  • Long-Term Savings: While higher-rated furnaces may cost more upfront, they save money over time through reduced energy use.
  • Enhanced Efficiency with Proper Thermostat Settings: Adjusting thermostat settings appropriately can further improve energy efficiency and comfort when paired with a high-AFUE furnace.

Choosing the Right Furnace Using AFUE Ratings

Selecting the right furnace doesn’t have to be complicated. Choosing the correct furnace size is crucial for efficiency and comfort, as it ensures your home is heated properly without wasting energy. Our professional furnace technicians, along with consultation from an HVAC professional, guide you every step of the way. We look at your home’s size, layout, and heating needs to determine the proper system sizing and installation. Then we recommend a furnace with the right AFUE rating.

If you’re ready for furnace replacement, our team makes the process simple. Our professional installation services ensure proper installation and long-term system reliability. We handle everything from furnace installation to post-installation inspections. You get a system that runs efficiently and fits your budget.

Furnace Installation Process: What to Expect

A successful furnace installation process starts with a thorough evaluation of your home’s heating needs. A licensed HVAC contractor will assess your existing ductwork, venting systems, and electrical connections to determine the best furnace type and size for your space. This ensures your new furnace will deliver efficient, reliable heat tailored to your home. Additionally, ductwork should be inspected for proper sealing before installation to prevent energy loss and ensure optimal system performance.

On installation day, your furnace installer will carefully remove the old furnace, making sure to follow proper disposal procedures. The new unit is then positioned in the installation area and securely connected to the gas lines, electrical wiring, and air ducts. If needed, the contractor may update venting systems or make modifications to the ductwork to accommodate the new furnace. Commissioning of the furnace includes testing for efficiency and proper operation, ensuring the system performs optimally before it is handed over to the homeowner.

Throughout the installation process, safety and compliance with local codes are top priorities. The HVAC contractor will double-check all electrical connections, gas lines, and system settings to ensure everything is operating safely and efficiently. Proper ventilation and gas line safety are critical to ensuring the safe operation of a furnace. Once the installation is complete, you’ll receive a final walkthrough to review the new system’s features and confirm that your furnace is working as it should.

Choosing a qualified furnace installer is essential for a smooth installation and optimal furnace performance. Professional installation not only protects your investment but also helps you get the most out of your new heating system for years to come.

Furnace Efficiency Tips for Maximum Performance

Even a high-efficiency furnace needs proper care to keep running at its best. Routine maintenance is essential for peak efficiency. Regular heating system maintenance helps keep AFUE ratings from dropping over time. During a routine visit, our technicians:

  • Check connections and air ducts.
  • Inspect heat exchangers for cracks or damage.
  • Clean blower motors and other components.
  • Inspect and replace the furnace’s filter as needed.
  • Check the blower motor for proper operation.
  • Change air filters.
  • Test carbon monoxide levels for safety.

Basic maintenance, such as checking the furnace’s filter and blower motor, can prevent many common issues before they become major problems.

We also offer a 19-point furnace safety check. This service helps catch potential issues early, saving you from costly repairs later. 

Simple Ways to Reduce Winter Heating Bills

Homeowners can also take steps to lower energy use. For example: 

  • Lower the thermostat when no one is home.
  • Use weatherstripping to seal windows and doors.
  • Make sure your home is properly insulated.

Upgrading to a high efficiency model can further reduce heating costs and may qualify for rebates or tax credits. Homeowners may also consider replacing or upgrading their air conditioner at the same time for optimal HVAC system efficiency. Additionally, adding an air purifier during furnace installation can improve indoor air quality alongside energy savings. Replacing your furnace with a new high-efficiency model can qualify you for a federal tax credit, which is different from a tax deduction, offering direct savings on your tax bill.

These small changes help your furnace work more efficiently, keeping your home comfortable and your bills low. 

Upgrading Your Heating System: When and Why to Consider It

If your existing furnace is showing signs of age, struggling to keep up with your heating needs, or requiring frequent repairs, it may be time to consider upgrading to a new high efficiency furnace. Most furnaces have an average lifespan of 15 to 20 years, and as they age, their performance and energy efficiency can decline, leading to higher energy bills and less reliable comfort. Proper maintenance throughout its lifespan can help maximize efficiency and delay the need for replacement.

Upgrading to a new furnace offers several benefits. A high efficiency furnace can dramatically improve your home’s indoor air quality, reduce your monthly heating costs, and provide more consistent warmth, especially important in colder climates. Modern systems are designed to work seamlessly with your existing ductwork and venting systems, and many can be paired with advanced features like programmable thermostats or air purifiers for even greater comfort and energy savings.

When considering a furnace replacement, it’s important to factor in your home’s square footage, insulation levels, and local fuel prices to select the right system. Other factors, such as the compatibility of your existing ductwork and the overall installation process, should also be taken into account. Consulting with a qualified HVAC technician ensures you choose a properly sized furnace and receive a professional installation that meets your needs and budget. The installed cost of a new furnace in 2025 typically ranges from $3,800 to $12,000, depending on factors like home size, local labor rates, and the system’s AFUE rating.

Investing in a new system not only enhances your comfort but also delivers long term savings and peace of mind, making it a smart choice for homeowners looking to improve their heating and energy efficiency.

Why Choose Us? 

We believe in doing the job right the first time. Our technicians are highly trained, and we stand behind our work with the best guarantee in the industry. Whether you need furnace repair, furnace replacement, or heating system maintenance, we deliver reliable furnace services that you can trust. When it’s time to upgrade to an energy-efficient furnace or schedule a furnace replacement, our professional furnace technicians are here to help.  

Frequently Asked Questions

Question: What does AFUE mean in relation to a furnace?
Answer: AFUE stands for Annual Fuel Utilization Efficiency. It measures how efficiently a furnace converts fuel into heat over the course of a year. A higher AFUE percentage means more of the fuel is being used to heat your home instead of being lost through the exhaust.

Question: Why are AFUE ratings important when choosing a furnace?
Answer: AFUE ratings help homeowners understand how energy-efficient a furnace is. A higher AFUE means better efficiency, lower fuel costs, and reduced environmental impact. Though high-efficiency units may cost more upfront, they typically offer long-term savings on energy bills.

Question: What is considered a “good” AFUE rating?
Answer: A good AFUE rating is typically 90% or higher. Modern high-efficiency furnaces often range between 90% and 98%, while standard older models may fall in the 80% range. Anything below 80% is considered inefficient by today’s standards.

Question: What can reduce a furnace’s AFUE over time?
Answer:
Factors like lack of maintenance, dirty filters, worn-out components, or poor installation can lower a furnace’s actual efficiency. Even with a high AFUE rating, a furnace can underperform without regular inspections and upkeep.

Question: How can homeowners decide if upgrading to a high AFUE furnace is worth it?
Answer:
Homeowners should consider their local climate, energy costs, how often they use heating, and how long they plan to stay in their home. In colder regions or homes with high heating use, a high-AFUE furnace can significantly reduce monthly bills and pay off over time.

At Dalton Plumbing, Heating, Cooling, Electric and Fireplaces, Inc., your comfort is our promise! Contact us today for professional furnace replacement in Des Moines, IA. 

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