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Furnace Replacement in Cottage Grove, MN

Replacing a furnace in Cottage Grove runs $4,500–$9,500 installed, written flat-rate, sized by Manual J for the Highway 61 ramblers. A Manual J sizes it, and the result often lands smaller than the builder's original.

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Furnace replacements in Cottage Grove homes

In Cottage Grove the gas bill comes from Xcel Energy. The installs themselves follow the two housing waves. In the 1960s and 70s ramblers and split-levels near Highway 61, the old furnace vents into a chimney, and a 96–98% replacement means PVC through the rim joist, a condensate drain and a plan for the water heater left behind. Split-levels also benefit from a two-stage furnace and a lower-level return.

In the post-2000 two-stories, the PVC is already there and the question is size: builders often picked big furnaces, and a Manual J commonly calls for a smaller one.

Farmhouses on the outskirts that burn propane can switch to natural gas where a line reaches the property.

Updated November 10, 2026

What affects the price of a new furnace in Cottage Grove?

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 Cottage Grove?

Cottage Grove is an Xcel Energy town for both gas and electricity, so one utility's programs cover the whole job. Xcel offers heating equipment rebates for high-efficiency gas furnaces, heat pump rebates through its Trade Partner Network, and a Make the Switch to Natural Gas program worth a look for farmhouses still on propane. 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 Cottage Grove: questions

Can we switch our Cottage Grove farmhouse from propane to natural gas with the new furnace?

If Xcel Energy's gas line reaches your road, often yes. Xcel handles the service line and meter, and we install the new furnace set up for natural gas and pipe it. The water heater and other gas appliances can be converted or replaced at the same time. Xcel's Make the Switch to Natural Gas program page is the place to start. With no main nearby, a new propane furnace or a dual-fuel heat pump is the alternative.

What happens to the water heater when our Cottage Grove split-level gets a 96% furnace?

When the old 80% furnace comes off the chimney, the gas water heater is left venting alone into a flue sized for two appliances. Its exhaust can cool, condense and draft poorly, so it needs a liner or a power-vent water heater that exits through the wall. We write that into the furnace quote, along with the PVC route through the rim joist, so nothing surprises you at inspection.

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