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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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 the north end's small 1940s and 1950s basements, the written quote also covers the water heater left behind when the furnace stops using the shared chimney.
Furnace replacement calls 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. We pull the mechanical permit as part of the job.
Updated September 23, 2026
How much does a new furnace cost in Inver Grove Heights?
An installed furnace from us runs about $4,500–$9,500 in Inver Grove Heights: 80% AFUE roughly $4,500–$6,000, 96–98% AFUE roughly $6,500–$9,500. Same prices in Inver Grove Heights as in every town we serve. See the furnace replacement cost guide.
Are there rebates for a new furnace in Inver Grove Heights?
Gas in Inver Grove Heights comes from Xcel Energy, whose heating equipment rebates for high-efficiency gas furnaces point customers to participating contractors, so ask whether the rebate needs a registered contractor. Electricity comes from Xcel Energy or Dakota Electric Association depending on your address. Xcel customers have heat pump and AC rebates through its Trade Partner Network; Dakota Electric members have Energy Wise Rebates, including an AC tune-up rebate open to any contractor. Propane homes in the south can look at their electric utility's heat pump rebates. Rebate programs change every year, so check the utility's current terms before you buy.
Our guides: Xcel and CenterPoint rebates, heat pump rebates.
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 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.
Which rebate applies to a new furnace in Inver Grove Heights?
For gas equipment, it's Xcel Energy's, since Xcel supplies natural gas to the built-up parts of the city. Xcel's heating equipment rebates cover qualifying high-efficiency gas furnaces, and its page directs homeowners to participating contractors, so ask whether that applies to you before you sign. Rebate amounts shift from year to year; check Xcel's current page. We provide the model and AHRI numbers the application needs.
More in Inver Grove Heights
- Furnace repair in Inver Grove Heights
- AC repair in Inver Grove Heights
- AC replacement in Inver Grove Heights
- All HVAC service in Inver Grove Heights
Furnace replacement near Inver Grove Heights
- Newport, MN 3 mi
- St. Paul Park, MN 3 mi
- South St. Paul, MN 3 mi
- Cottage Grove, MN 5 mi
- Mendota Heights, MN 5 mi
- West St. Paul, MN 6 mi
Brands we install and service
Guides on furnace replacement
Furnace Burning Smell in a Minneapolis Home: What Each Smell Means
Dust, hot plastic, rotten eggs or exhaust: what each furnace smell means, which mean shut it off now, and the basement causes we find in Minneapolis homes.
Read the guideWhat Does It Mean When a Furnace Is Red-Tagged?
A red tag means a technician or the gas utility found your furnace unsafe and shut it off. Common reasons, what not to do, and how to get a second opinion.
Read the guideContact Us
Furnace replacement in Inver Grove Heights? Call or send a request.