96% vs 98% AFUE Furnace: Worth the Upgrade in Minnesota?
A 98% AFUE furnace saves only about 2% more gas than a 96% model. Our condensing furnaces run $6,500–$9,500 installed. See what the extra buys.
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Furnace replacement in Red Wing runs $4,500–$9,500 installed through us. An 80% furnace that keeps using a sound, lined chimney is about $4,500–$6,000; a 96–98% condensing model with PVC venting is about $6,500–$9,500. Every quote is written, flat-rate and sized with a Manual J load calculation.
Tall brick chimneys shape most Red Wing furnace replacements. Keep an 80% furnace and the chimney has to be sound and properly lined for it. Switch to a 96–98% furnace with PVC and the water heater is left alone in a big, cold flue, which usually means a liner sized for the water heater or a power-vent replacement. On a sloped lot, the PVC termination goes where it clears grade and drifting snow by the manufacturer's distances, which often favors the downhill or walkout side of the house.
Sizing takes care in older houses with thick masonry walls, additions and patched-together duct systems; a Manual J keeps a replacement from repeating the oversizing common in converted systems. Xcel Energy is both the gas and the electric utility in town. Township farmhouses burn propane instead. A mechanical permit is normally required, and it is listed on your written quote.
Updated October 27, 2026
What moves the quote in Red Wing: venting changes on a switch to a condensing furnace, a liner for a water heater left alone in the chimney, and ductwork and returns. See the furnace replacement cost guide.
Xcel Energy supplies both natural gas and electricity in Red Wing, so its programs cover the whole system: heating equipment rebates for high-efficiency gas furnaces and boilers. 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.
Sometimes. The chimney has to be structurally sound, clear, and sized or lined for what's venting into it. Older chimneys around Red Wing are often unlined or have cracked clay tile, and an unlined chimney on a cold outside wall condenses flue gas and erodes from the inside. We look down the flue, check the base and test draft before quoting. If the chimney needs a liner either way, that cost goes in the written quote up front.
Usually out the walkout side if the furnace is near it, because the grade drops away and the pipe stays well above the snow. On the uphill side, the termination can end up close to the ground and get buried. The manufacturer sets the minimum height above grade and the clearances from windows, doors and the gas meter. Sometimes a longer PVC run across the basement is worth it to reach the better wall.
Signs your furnace needs replacing
A 98% AFUE furnace saves only about 2% more gas than a 96% model. Our condensing furnaces run $6,500–$9,500 installed. See what the extra buys.
Read the guideWhy a furnace high-limit switch keeps tripping, a symptom-to-cause table, the checks to do yourself, the order a technician follows, and what the fix costs.
Read the guideFurnace clicking but not lighting? Follow a technician's startup sequence, from power and inducer to igniter, gas and flame sensor, then call 612-429-3465.
Read the guideHeat out? AC quit? Call or send a request.