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Furnace Replacement in Cottage Grove, MN

Xcel Energy is the gas utility in Cottage Grove, not CenterPoint, so furnace rebates here run through Xcel's Heating Equipment Rebates program. Our replacements cost $4,500–$9,500 installed, written as a flat rate and sized with a Manual J, which often lands smaller than the builder's original.

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Furnace replacement in Cottage Grove: $79 trip charge, waived with the repair.

We'll call or text you back about this request only. Rather talk now? Call 612-429-3465.

Furnace replacement calls in Cottage Grove homes

In Cottage Grove the gas bill comes from Xcel Energy, and that changes the rebate side of a furnace replacement. Xcel's Heating Equipment Rebates cover high-efficiency gas furnaces, and the program points homeowners to participating contractors, so ask whether your rebate requires one before you sign.

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 September 23, 2026

How much does a new furnace cost in Cottage Grove?

An installed furnace from us runs about $4,500–$9,500 in Cottage Grove: 80% AFUE roughly $4,500–$6,000, 96–98% AFUE roughly $6,500–$9,500. Same prices in Cottage Grove as in every town we serve. 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. Several Xcel measures need a registered contractor, so ask before you buy. AC Rewards pays an annual reward for letting Xcel adjust a connected smart thermostat on peak days. Rebate programs change every year, so check the utility's current terms before you buy.

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

Outdoor unit of a ductless heat pump on a ledge beside a house wall and window

Signs it's time to replace your furnace

  • A cracked heat exchanger on a furnace that's out of warranty
  • The furnace is 20-plus years old and needs another major repair
  • Rooms far from the furnace never warm up on sub-zero nights
  • Gas bills climbing while your thermostat settings haven't changed
  • Repair calls two or more winters in a row
  • A burner roar or blower noise you can hear across the house
  • Replacement parts for your model are getting hard to find

More detail on our furnace installation page.

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.

Does Xcel Energy's furnace rebate in Cottage Grove require a particular contractor?

Check before you buy. Xcel's Heating Equipment Rebates page for high-efficiency gas furnaces steers homeowners toward a participating contractor, and some Xcel measures need an Xcel-registered one. Programs and requirements change every year. We'll give you the furnace model, its AFUE and its AHRI listing for the application, and help with the paperwork where the program allows it.

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Furnace replacement in Cottage Grove? Call or send a request.

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We'll call or text you back about this request only. Rather talk now? Call 612-429-3465.

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