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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Mendota Heights furnace installs are priced flat and in writing at $4,500–$9,500, sized by a Manual J: about $4,500–$6,000 for 80% AFUE and $6,500–$9,500 for 96–98% AFUE. Xcel Energy supplies the gas citywide, and its Heating Equipment Rebates include high-efficiency models.
Size is the first thing to get right in Mendota Heights. Many houses sit under mature trees and have had windows, insulation or, near the flight paths, sound insulation work since they were built, so a furnace copied from the old nameplate often comes out too big. A Manual J load calculation that reflects those changes settles it.
A 96–98% condensing furnace is sealed combustion, taking its air from outside through PVC, which suits a tight, sound-insulated house. Its condensate needs a floor drain or a pump, and on the private septic systems in the Somerset area we can add a neutralizer. On a walkout lot the vent pipes often leave through the exposed lower wall, clear of decks and patio doors. Xcel's Heating Equipment Rebates point you to a participating contractor, so check the terms. A Home Energy Squad visit through the city's Partners in Energy plan can trim the load first. We pull the permit.
Updated September 26, 2026
An installed furnace from us runs about $4,500–$9,500 in Mendota Heights: 80% AFUE roughly $4,500–$6,000, 96–98% AFUE roughly $6,500–$9,500. Same prices in Mendota Heights as in every town we serve. See the furnace replacement cost guide.
Mendota Heights is all Xcel Energy for gas and electricity, and the city worked with Xcel's Partners in Energy program on an Energy Action Plan that sends residents to Home Energy Squad visits, free for income-qualified households. For equipment, Xcel's Heating Equipment Rebates are for high-efficiency gas furnaces and point you to a participating contractor, its heat pump rebates are paid through the Trade Partner Network, and Residential Cooling Rebates, Saver's Switch and AC Rewards cover the cooling side. 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.
Often out the exposed walkout wall, since it's close to the furnace and above grade. The pipe ends need the manufacturer's set distances from openable windows, doors and the gas meter, sit above the expected snow line, and usually stay out from under a deck, where exhaust can collect. If the walkout faces the patio, we route the pipes to a side wall or up through the roof instead, and we plan the route before quoting.
Pick a furnace whose blower can move the airflow of the air conditioner or heat pump you expect to add, and leave room above it for a matched coil. A variable-speed blower handles either choice best. If a heat pump is likely, confirm the furnace and thermostat can run dual fuel. That way the second project is a condenser, a coil and a line set, not rework on a furnace that's two years old.
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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