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Furnace Replacement in Inver Grove Heights, MN

Our installed price for a new furnace in Inver Grove Heights is $4,500–$9,500, with the size set by a Manual J rather than the old nameplate. In small north-end basements, the written quote also covers the water heater left in the chimney.

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Furnace replacements in Inver Grove Heights homes

In the north end, a new furnace usually means leaving a chimney. The 1940s and 1950s houses vent furnace and water heater together, and moving the furnace to 96–98% efficiency puts two PVC pipes out a side wall and leaves the water heater alone in a flue sized for two. Lining the chimney or switching to a power-vent water heater fixes that, and it belongs in the quote from the start. Small basements also limit where a condensate drain can go.

Mid-city split-entries and townhomes usually have a condensing furnace already, so the job is reusing or correcting the PVC run and sizing properly, since plenty of 1990s furnaces were oversized. On the rural south end, propane homes get the same sizing work. Xcel Energy supplies natural gas across the built-up city, and its furnace rebate page points you to participating contractors, so ask about that requirement before signing. The swap normally needs a mechanical permit, and the chimney liner or side-wall vent is part of that work.

Updated October 27, 2026

What affects the price of a new furnace in Inver Grove Heights?

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 Inver Grove Heights?

Xcel's heating equipment rebates for high-efficiency gas furnaces point customers to participating contractors, so ask whether the rebate needs a registered contractor. 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 Inver Grove Heights: questions

Can a 96% furnace fit in our small north-end Inver Grove Heights basement?

Usually. Condensing furnaces are about the same size as the old 80% units. The harder parts are the pipe route, which needs a side wall with proper clearance from windows, doors and the gas meter, and a place for condensate to drain, which may mean a small pump. Then the water heater needs its own venting fix. We sketch all of it before quoting, so the written price covers the whole job.

Our Inver Grove Heights townhome furnace sits in a closet. Can the new one go in the same space?

Usually. The new furnace has to fit the closet with the clearances the manufacturer lists, and a condensing model needs a side-wall route for its two PVC pipes and a drain. We measure the space and check the combustion air before quoting. If the closet is too tight, a slimmer model or a different spot for the unit can work, and the written quote says which.

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