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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A new furnace for a Grant home runs $4,500–$9,500 installed with us, on Xcel gas or on propane with an LP conversion kit. The flat-rate quote is sized by Manual J, not the old nameplate.
Grant replacements start with the fuel. On propane, a 96–98% furnace stretches every gallon, and since a propane BTU typically costs more than a natural gas one, the efficiency gain is worth more here than in a gas home; the furnace gets an LP conversion kit and a pressure check at startup. Where Xcel Energy's gas lines reach, Xcel pays heating equipment rebates on high-efficiency gas furnaces.
Venting takes planning. A farmhouse or 1970s home moving to a condensing furnace needs a PVC route out a side wall or through the roof that stays clear of drifts on an open lot, and an orphaned water heater in the old chimney gets its own fix, either a liner sized for it or a power-vent model. Larger homes on acreage sometimes have two furnaces or zoning, and a Manual J often shows the originals were oversized. Pairing the new furnace with a heat pump lets electricity carry the mild months. Whether the house burns propane or Xcel gas, a furnace swap normally needs a mechanical permit.
Updated October 27, 2026
By efficiency: 80% AFUE roughly $4,500–$6,000; 96–98% AFUE roughly $6,500–$9,500. See the furnace replacement cost guide.
Where a home has Xcel gas, a high-efficiency furnace can add Xcel's heating equipment rebate. If Xcel's gas line reaches your road, ask about its Make the Switch to Natural Gas program. Rebate programs change every year, so check the utility's current terms before you buy.
Our guides: Xcel and CenterPoint rebates, heat pump rebates.
Usually, yes. Heat from propane typically costs more than heat from natural gas, so each gallon a condensing furnace saves is worth more than the same efficiency gain on a gas line. Weigh the price gap between an 80% and a 96–98% furnace against your yearly propane use. Your delivery records show how many gallons you burn.
Often, yes. Most condensing furnaces allow a vertical PVC run through the roof, as long as the total pipe length and number of elbows stay within the manufacturer's venting table. If a side wall works better, the termination has to sit above the expected snow level, and a riser kit can lift it. We look at where drifts pile on your lot during the quote and route the vents to stay clear.
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.
Read the guideBang, squeal, scrape, rattle, hum, click or whistle: what each furnace noise means, whether it's safe to run, and when to call 612-429-3465.
Read the guideA furnace that turns on and off too often tells you what's wrong by how long it runs. How to time a cycle, what it means, and when to call 612-429-3465.
Read the guideHeat out? AC quit? Call or send a request.