96% vs 98% AFUE Furnace: Is the Upgrade Worth It in Minnesota?
What AFUE measures, the gas math from 80% to 96% to 98% using your own bill, and what a 98% furnace really buys you in a cold Minnesota house.
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A replacement furnace for a Hudson home costs $4,500–$9,500 installed with us, sized by Manual J and quoted in writing at a flat rate. In the post-2000 subdivisions, the existing PVC venting can often carry over once we check its diameter and length against the new furnace's instructions.
Most Hudson replacements are condensing-to-condensing. The builder furnace from the 2000s comes out, a two-stage or variable-speed 96–98% model goes in, and the air exchanger, humidifier and AC coil get reconnected and rebalanced. Two-stories and walkouts here often have one thermostat for three levels, so a replacement is the right time to talk about zoning or a better return layout.
The older homes near downtown and the riverfront need the chimney conversation: an 80% furnace with a liner, or a condensing furnace with PVC and a plan for the orphaned water heater. Because Hudson is in Wisconsin, gas and electric come from Xcel Energy operating as Northern States Power–Wisconsin, and efficiency incentives run through Focus on Energy, the statewide program, instead of Xcel's Minnesota rebates. We pull the permit for the job, and the quote lists everything the new furnace needs.
Updated September 23, 2026
An installed furnace from us runs about $4,500–$9,500 in Hudson: 80% AFUE roughly $4,500–$6,000, 96–98% AFUE roughly $6,500–$9,500. Same prices in Hudson as in every town we serve. See the furnace replacement cost guide.
Minnesota rebates stop at the river. In Hudson, Xcel Energy (Northern States Power–Wisconsin) supplies gas and electricity, and efficiency incentives run through Focus on Energy, Wisconsin's statewide program, which works with participating utilities including Xcel. Focus on Energy also runs the income-qualified HEAR rebates, which require an IRA Registered Contractor, so ask whether your project qualifies and who can install it. Offers change during the year, so check Focus on Energy's current list before you buy. Rebate programs change every year, so check the utility's current terms before you buy.
Our guides: Xcel and CenterPoint rebates, heat pump rebates.

More detail on our furnace installation page.
Focus on Energy, Wisconsin's statewide efficiency program, sets its own list of eligible equipment and changes it over time, so check its current residential offers before choosing a model. Its income-qualified Home Energy Rebates are open but aimed mostly at electric equipment such as heat pumps, and most of those require an IRA Registered Contractor. Ask about that before you sign. We'll give you the model and AHRI numbers any application asks for.
Often, but we check before assuming. The new furnace's manual lists the pipe diameter and maximum length for its size, and a longer run or extra elbows can call for larger pipe. Terminations have to meet clearance rules and sit above the snow line, and older glued joints sometimes leak. When the pipes pass, reusing them saves wall patching. When they don't, the change is in your written quote.
What AFUE measures, the gas math from 80% to 96% to 98% using your own bill, and what a 98% furnace really buys you in a cold Minnesota house.
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Read the guideFurnace replacement in Hudson? Call or send a request.