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Furnace Replacement in Oak Grove, MN

A new furnace on an Oak Grove lot, gas or propane, runs $4,500–$9,500 installed. The Manual J sets the size, and the quote is flat-rate and written. On gas lots a 96–98% model is the usual choice, and on propane lots we price a heat pump pairing too.

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Furnace replacements in Oak Grove homes

A furnace replacement on an Oak Grove lot often turns into a decision about the whole heating plan. With CenterPoint Energy gas, a 96–98% furnace is the usual choice. On propane, pairing the furnace with a heat pump makes more sense, since Connexus Energy charges less for heat pump heating when a furnace backs it up automatically. On a big lot, a ground-source system is worth pricing too.

Venting takes some thought where trees and drifts are part of the yard. The PVC should exit where leaves and snow won't pile against it, clear of windows and the gas meter or propane regulator, and in the 1970s and 80s houses the water heater still using the chimney may need a liner once the furnace moves to PVC. The size comes from a Manual J, and Oak Grove issues HVAC permits at the time of application.

Updated November 10, 2026

What affects the price of a new furnace in Oak Grove?

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 Oak Grove?

CenterPoint Energy rebates high-efficiency furnaces and boilers installed by any contractor, as long as the application is in by the end of the install year, and its ducted heat pump rebate requires a gas furnace partner. Ask us which rebates apply when we quote. 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 Oak Grove: questions

Our 1970s Oak Grove split-level needs a new furnace. Where will a 96% model vent?

Usually out the rim joist or a lower-level wall near the furnace, since a split-level's furnace normally sits in the lower level. The termination has to clear the snow line, windows, doors and the gas meter or propane regulator by the manufacturer's distances, and it shouldn't sit under a deck where snow and leaves collect. If no wall works, the pipes can go up through the roof. We plan the route on the quote visit.

We may add a heat pump in a few years. What should the new furnace in our Oak Grove home have?

A blower and control board that can run dual-fuel, room above the cabinet for a coil that will match a future heat pump, and thermostat wiring for an outdoor unit. Planned that way, adding the heat pump later is mostly outdoor work. Under Connexus Energy's reduced heating rate, the furnace, gas or propane, then becomes the automatic backup the co-op requires, and the heat pump carries the milder days.

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