Furnace Replacement Cost in Minnesota (2026)
A new furnace installed in Minnesota runs $4,500–$9,500 with us: 80% vs 96–98% AFUE prices, what moves a quote, and rebates now that 25C has ended.
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Furnace replacement in Falcon Heights runs $4,500–$9,500 installed, flat-rate and written, sized by a Manual J. Older houses near Snelling and Larpenteur vent into old chimneys, so moving to 96–98% means two PVC pipes out a side wall or roof.
In Falcon Heights' older houses, venting drives the replacement. Moving from a chimney-vented 80% furnace to a 96–98% condensing unit means routing two PVC pipes out a side wall or the roof and running the condensate to a floor drain or a small pump, with the terminations clearing windows, doors, the gas meter and walkways by the manufacturer's distances. Staying at 80% is possible, but the old masonry chimney usually needs a liner sized for the new furnace, and the water heater's venting gets rechecked either way.
Sizing comes from a Manual J on the house as it is now, after any insulation or air sealing, which is why the Home Energy Squad visits the city promotes pair well with a replacement. On the gas side, Xcel Energy's rebates for high-efficiency furnaces may require a participating contractor, so check the current terms. The City of Falcon Heights issues the mechanical permit, and inspections are scheduled through Little Canada, which the city contracts with.
Updated November 10, 2026
By efficiency: 80% AFUE roughly $4,500–$6,000; 96–98% AFUE roughly $6,500–$9,500. See the furnace replacement cost guide.
A high-efficiency gas furnace can earn an Xcel rebate, and Xcel's heat pump rebates generally run through its Trade Partner Network contractors, so ask about that first. Rebate programs change every year, so check the utility's current terms before you buy.
Our guides: Xcel and CenterPoint rebates, heat pump rebates.
Only if nothing else uses it. The water heater usually still vents there, and some houses have a fireplace or a boiler on the same stack. Switching the water heater to a power-vent or other sealed model frees the chimney completely; after that, taking it down or capping it is a job for a mason and a roofer. During the quote we confirm exactly which appliances still depend on that flue.
Usually. The PVC can run across the basement ceiling to an outside wall as long as the total length, with every elbow counted, stays inside the manufacturer's maximum. Some models allow the pipes to run up an unused chimney as a chase, but only when no other appliance vents into it. If the run is too long, an 80% furnace with a relined chimney is the fallback. We measure it during the quote.
Signs your furnace needs replacing
A new furnace installed in Minnesota runs $4,500–$9,500 with us: 80% vs 96–98% AFUE prices, what moves a quote, and rebates now that 25C has ended.
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