Are you thinking to install a new heater in your home? Here's a quick breakdown of all the costs associated with a new heater installation.

How Much Does a Heater Installation Cost?

Did you know that it can cost over $3,000 each year to maintain a home? From aging HVAC systems to curling roof shingles, there are lots of issues to address. And if you live in a place where it gets chilly in the winter, you’ll want to put your furnace or heat pump at the top of the priority list. 

Read on to learn how much a heater installation costs!

Consider the Cost of a Heat Pump

When it comes to determining the cost of heating installation, you’ll need to determine what type of heater is best. For those in milder climates, a heat pump may make the most sense. The pump uses outside air to generate heat, so the warmer the external air, the better.

Not only can a heat pump heat your home, but it also can help cool it, too. This can save money in your budget because you won’t need to install an air conditioning unit. And they won’t take up as much space to install.

Expect to pay around $3,000 or so for a heat pump, though that price can skyrocket to over $20,000 if you go with a geothermal pump. That’s because you may need to do some costly digging to place refrigerant lines deep enough in the ground.

Look into a Furnace

Furnaces make more sense as your go-to heater if you live in a place where the winter temperatures routinely dip below the freezing mark. Furnaces are more powerful, providing a consistent range of heat compared to a heat pump’s output. 

With a furnace, you can expect to spend over $4,000 for gas or electric options. And when you invest in an energy saving model, you may even spend over $10,000. Keep in mind, however, that those numbers reflect the costs of the unit only.

If you’re diligent about replacing filters, a furnace can improve your indoor air quality. It also can provide a faster way to keep your home toasty when it’s cold outside.  

Size Impacts the Heater Cost

The more square footage you need to heat, the bigger the heating unit you’ll need to get. On top of square footage, you’ll also need to consider the height of your ceilings since bigger rooms will require more heating power. And if you have any drafty windows, it’s worth sealing them before you invest in a new heater.

For instance, a smaller furnace is around 40,000 BTUs. This could serve a modest home under 1,500 square feet. And it will be on the lower end of the price spectrum at around $2,000.

A similarly sized house would require a heat pump of around 45,000 BTUs, or 4 tons. But for a larger home that is over 3,000 square feet, the heat pump size would increase to 6 tons. The price would increase to over $7,000, as well. 

Check How Much Ductwork Exists

Are you starting from scratch with a heater or do you already have ductwork in place? The answer to this question will impact the installation cost of a new heating system. 

When you can’t connect a new heater to existing ductwork, you’ll have to pay the cost of installation. This could be thousands of dollars. And if you’re in a large older home, you could expect to pay over $10,000.

If a technician runs into obstructions or other issues during installation, the cost will only go up. For instance, asbestos or other outdated gas lines will need to be removed or replaced. Rerouting ducts can increase the cost, as well.

Likewise, you’ll need to add the costs of venting. You could end up paying close to $500 per vent, depending on where a vent sits in relation to the ductwork. For a more robust furnace, you’ll need more vents, too. 

Factor in Labor and Heating Costs

Ultimately, when installing anything, technicians will need to ensure your home is up to code. And if technicians encounter problems along the way when upgrading ductwork, for instance, they’ll need extra time to deal with them. Installing new ductwork could end up taking a few days of work at around $40 per hour. 

For the installation of the furnace or heat pump, you could be paying over $100 per hour. The hourly rate could depend on the reputation of the company and the region where you live. It’s fair to ask about hourly rates and timelines to estimate how much you’ll end up paying. 

You’ll also need to spend money on a building permit, which could add around $500 to your final price. Removing an old furnace may tack on a few hundred dollars, as well. Overall, with new equipment and labor costs, you should anticipate spending at least $5,000 to upgrade the heater in your home. 

Look into affordable heating installations to ensure you can keep prices low. But always ask to see credentials so you know you’re getting a technician who can do the installation safely. If an installation cost seems too good to be true, it probably is. 

With a heat pump, you’ll save on heating costs since they are cheaper to run. And a high-efficiency furnace may be an investment on the front end, but you’ll enjoy savings on your monthly utility bills. 

Pursue Heater Installation

Heater installation may sound expensive, but it’s worth it to feel comfortable when the temperatures drop. Consider whether a heat pump or furnace is the better choice given where you live. And look into costs of particular models, labor for the installation, and additional costs such as ductwork. 

For more tips to stay on top of home maintenance, check back soon for new articles!

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