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 Ramsey, MN
A new furnace in Ramsey costs $4,500–$9,500 installed with us, roughly $4,500–$6,000 for an 80% model and $6,500–$9,500 for 96–98% AFUE. Propane homes out on acreage get the same Manual J sizing and written flat-rate quote, with the furnace set up for LP instead of natural gas.
Furnace replacement calls in Ramsey homes
Most Ramsey furnace replacements land in one of two houses. In a 1970s or 80s split-entry, the furnace sits in a half-below-grade lower level, and moving from 80% to 96–98% means a PVC run out through the rim joist with the termination kept above grade and the snow line. If the old furnace shared a chimney with the water heater, the water heater needs its own venting plan. A 1990s or 2000s two-story already has PVC, though the new furnace's manual decides whether the old pipe still qualifies.
Fuel changes the math. CenterPoint Energy's heating rebates cover high-efficiency gas furnaces and let you use the dealer of your choice, but a propane house isn't a CenterPoint customer. Connexus Energy, the electric utility for most of the city, has heat pump rebates and a reduced-rate dual-fuel program, and pairing a heat pump with the new furnace often makes sense where propane is the fuel. Replacement needs a city mechanical permit, which we pull.
Updated September 23, 2026
How much does a new furnace cost in Ramsey?
An installed furnace from us runs about $4,500–$9,500 in Ramsey: 80% AFUE roughly $4,500–$6,000, 96–98% AFUE roughly $6,500–$9,500. Same prices in Ramsey as in every town we serve. See the furnace replacement cost guide.
Are there rebates for a new furnace in Ramsey?
Natural gas homes in Ramsey can use CenterPoint Energy's furnace and boiler rebates. Propane homes have no gas utility rebate, so on those properties the electric utility's programs matter more. Connexus Energy offers rebates on air-source, ductless and ground-source heat pumps, an AC rebate, and a reduced-rate dual-fuel program. Anoka Municipal Utility's central AC rebate requires replacing both the outdoor unit and the indoor coil. Check which utility is on your bill before choosing equipment. 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 Ramsey: questions
Is a 96% propane furnace worth the extra cost on our Ramsey acreage?
Usually yes. Propane typically costs more per unit of heat than natural gas, so every point of efficiency saves more money each winter than it would on a gas main. An 80% furnace can still make sense for a building you barely heat. For the house itself, compare a 96% furnace alone against a 96% furnace paired with a heat pump on Connexus's dual-fuel rate, which lets electricity carry the mild days and saves propane.
The furnace in our Ramsey split-entry sits under the stairs. Will a condensing furnace fit there?
Usually. A 96% furnace has a similar footprint to an 80% one, so the cabinet itself is rarely the problem. The questions are where the PVC exits (through the rim joist, high enough to clear snow), where the condensate drains (a floor drain, or a pump if it's across the room), and whether there's enough room in front to service it. We measure all three before quoting.
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