How much does a new furnace cost in Minneapolis?
In Minneapolis the gas comes from CenterPoint Energy, and our furnace prices split by efficiency: roughly $4,500–$6,000 installed for an 80% AFUE furnace, roughly $6,500–$9,500 for a 96–98% condensing one. The bottom of either band is a straight swap, and a city basement rarely stays that simple. Going condensing adds line items: PVC intake and exhaust routed to a wall where the terminations clear the neighbor's windows, a condensate line run to the floor drain, or a pump, and new venting for the water heater stranded in the chimney, which usually means relining the flue or switching to a power-vent water heater. Keeping an 80% furnace on a flue in good shape skips all of that.
Low ceilings and returns come next. A furnace and coil stacked under low joists may need a shorter cabinet, and a converted octopus system often needs return capacity added before a modern blower can breathe; both go into the written quote. Sizing can pull the number down, since a Manual J on a bungalow that has gained windows and attic insulation often calls for a smaller furnace than the one there now.
Related: Furnace replacement in Minneapolis · Furnace repair in Minneapolis · Our furnace replacement cost guide
How much does a new central AC cost in Minneapolis?
Central AC replacement runs $5,200–$9,800 installed with us, and that range assumes a Minneapolis house with forced air; a radiator house without ducts is a ductless job instead. The new coil has to match the condenser and sit on the furnace you already have, so an older, narrower furnace cabinet can call for a new transition, and a low basement ceiling limits how tall that coil can be. A system still running on R-22 is a full changeover: condenser, coil, and a line set that is either flushed and reused, if its size is right, or replaced. Moving a condenser out of a cramped gap between houses to a spot with real clearance lengthens the line set and adds to the price. Electrical cost is usually small on a straight swap, since the old circuit can often be reused. Ask for a heat pump price too: it takes the condenser's spot, costs more, and carries spring and fall heating with the furnace as backup.
Related: AC replacement in Minneapolis · AC repair in Minneapolis · Our AC replacement cost guide
How much do heat pumps and mini-splits cost in Minneapolis?
A ducted heat pump runs $7,500–$14,500 installed with us, and in Minneapolis most go in as dual fuel, with the CenterPoint gas furnace covering the coldest weeks. The quote climbs with a cold-climate model sized to carry more of the winter, and again when the returns on a gravity-era duct system need rebuilding for the steady airflow a heat pump wants. A full panel with no room for a 240-volt breaker adds electrical work.
Ductless runs $4,200–$12,500 with us, and the count of indoor heads mostly sets where a job lands. A single head for the finished upstairs of a Longfellow or Nokomis bungalow sits low in that range; a head in every bedroom of a radiator house, on a multi-zone outdoor unit, sits high. On the electric side, look at Xcel Energy's Heat Pump Rebates, and ask whether the rebate you want requires a registered contractor.
Related: Heat pumps in Minneapolis · Ductless mini-splits in Minneapolis · Our heat pump cost guide
How much do HVAC repairs cost in Minneapolis?
Repairs start with a $79 trip charge that we waive once you approve the work, and the repair price is flat-rate and written before anything is replaced. The figures below are published national ranges for scale, not our pricing. National cost guides such as HomeGuide put a condenser fan motor at $200–$700 and a capacitor at $150–$400, two parts that wear out early on a condenser wedged between city houses. For the inducer motor on an older furnace, a typical national range is $400–$1,100, per HomeGuide. R-22 is where a leak gets expensive: for reclaimed or stockpiled R-22, HomeGuide's typical national range is $90–$150 per pound installed, and plenty of Minneapolis condensers still use it. A condensate pump, common in low basements far from a floor drain, has a typical national range of $100–$450, per HomeGuide.
Related: Furnace repair in Minneapolis · AC repair in Minneapolis · AC capacitor cost · Our furnace repair cost guide
Which rebates lower the price in Minneapolis?
Utility rebates are claimed after the install with the paid invoice, so they cut your net cost, not the quote. Gas here is CenterPoint Energy, whose heating system rebates cover high-efficiency furnaces and boilers from the dealer of your choice if you apply in the install year. Xcel Energy runs the AC, heat pump and ductless rebates, and some require a contractor registered with Xcel. The City of Minneapolis Green Cost Share program, run with the Center for Energy and Environment, is worth checking before work starts. The federal 25C tax credit ended for equipment put into service after December 31, 2025, and Minnesota's HEAR and HOMES rebates haven't launched. Terms change yearly, so confirm each program's current rules.
Related: What happened to the federal credits · Minnesota heat pump rebates · Our Xcel and CenterPoint rebate guide
- Natural gas
- CenterPoint Energy
- Electric
- Xcel Energy
Minneapolis cost questions
Is the city permit an extra charge on top of a Minneapolis furnace or AC quote?
No. Minneapolis normally requires a mechanical permit for a furnace, boiler, AC or heat pump replacement, and on our installs the permit is listed in the written quote, so nothing gets added after the inspection. The city sets the fee and can change it, which is why we don't print a figure here. When you compare bids, check that every one of them includes the permit.
Our Minneapolis duplex has two furnaces the same age. Is each one priced separately?
Yes. Each furnace heats its own unit, so each gets its own load calculation, its own equipment and its own line in the quote, within our $4,500–$9,500 installed range. Replacing both in one project lets us plan the venting once, which helps when both furnaces and a water heater share one old chimney. If one is still running well, you can budget its replacement for a later season.
What does it cost to cool the finished upstairs of a Minneapolis story-and-a-half?
Usually the price of one ductless head, which sits near the bottom of our $4,200–$12,500 ductless range, not a new central AC. A bigger condenser can't push air up ducts that never reached the half-story. One head mounted high on an outside wall cools that floor in July and takes the chill off in April. If the upstairs is split into closed bedrooms, a second head on a two-zone outdoor unit adds to the price.
Is an 80% furnace the cheaper choice for an old Minneapolis chimney?
Up front, usually yes. An 80% furnace runs roughly $4,500–$6,000 installed with us and can keep venting into a sound chimney, with no PVC run, condensate line or water heater fix. It also sends about a fifth of the gas it burns up the flue, every winter. For a house you plan to keep, a 96–98% furnace at roughly $6,500–$9,500 usually makes more sense. A chimney that needs relining anyway narrows the gap.
Updated September 25, 2026