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Furnace Replacement in Annandale, MN

A furnace replacement at an Annandale lake home or in-town house runs $4,500–$9,500 with us, flat-rate and written. Lake homes that were added onto and re-insulated rarely need the furnace size on the old nameplate, so we start with a Manual J.

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Furnace replacements in Annandale homes

Many Annandale lake homes keep the furnace in a crawlspace or a closet instead of a basement, and a replacement starts with getting the new one in. A horizontal furnace fits a crawlspace, but it has to sit on a proper platform off the soil, with a condensate drain protected from freezing and PVC vents that clear drifting snow. We measure the hatch and the path to it before quoting. In town, older two-stories may still vent into a chimney, and moving to 96% can leave the water heater alone in a flue it can't warm, which calls for a liner.

Lake roads beyond the gas mains run on propane, where the talk often turns to pairing a propane furnace with a heat pump, and to whether Xcel Energy or Wright-Hennepin sends your electric bill.

Updated October 27, 2026

What affects the price of a new furnace in Annandale?

By efficiency: 80% AFUE roughly $4,500–$6,000; 96–98% AFUE roughly $6,500–$9,500. See the furnace replacement cost guide.

Are there rebates for a new furnace in Annandale?

CenterPoint's heating system rebates cover high-efficiency furnaces and boilers and let you use the dealer of your choice. Wright-Hennepin lists its own air-source heat pump rebates, and a propane furnace generally won't qualify for a gas utility rebate. Ask us which rebates apply when we quote. Rebate programs change every year, so check the utility's current terms before you buy.

Our guides: Xcel and CenterPoint rebates, heat pump rebates.

Furnace replacement in Annandale: questions

Can the furnace in our Annandale cabin's crawlspace move to a closet upstairs?

Sometimes, and it's worth asking. A furnace in a heated closet is out of the damp and far easier to service, and ducts can drop through the floor to the old crawlspace runs or cross a ceiling. The limit is room: the closet has to hold the furnace, a return, service clearance and a vent route to an outside wall. We look at both locations on site and price them side by side.

How do you keep a crawlspace furnace's condensate line from freezing at our Annandale lake home?

A 96% furnace makes condensate that has to drain somewhere above freezing. In a crawlspace we keep the line short and continuously sloped, run it to a drain or condensate pump inside the heated space where we can, and insulate any stretch that crosses cold space, so it never holds standing water that can freeze solid. A furnace moved to a heated closet upstairs avoids the problem altogether. For a lake home left empty for weeks, we go over the drain route and the vent terminations before we quote.

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