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 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 and runs heating equipment rebates on high-efficiency gas furnaces; ask whether the one you want requires a participating contractor. Township farmhouses burn propane, which Xcel's gas rebates don't cover. Permit paperwork is part of our job.
Updated September 23, 2026
An installed furnace from us runs about $4,500–$9,500 in Red Wing: 80% AFUE roughly $4,500–$6,000, 96–98% AFUE roughly $6,500–$9,500. Same prices in Red Wing as in every town we serve. 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, and electric-side rebates for central AC and air-source and ductless heat pumps. Several Xcel rebates require a registered contractor, so ask whether yours does before you buy. Homes in the townships around Red Wing may heat with propane or have a different electric provider; check the name on each bill. 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.
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.
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.
Read the guideReplacing the furnace and AC together in Minnesota costs $9,700–$19,300 installed with us. Matched coils, AHRI ratings, and when to split the job instead.
Read the guideConverting an oil furnace or boiler to gas in Minnesota: typical national costs, getting gas to the house, venting, the oil tank, hot water and rebates.
Read the guideFurnace replacement in Red Wing? Call or send a request.