Furnace Replacement Cost in Minnesota (2026)
A new furnace installed in Minnesota runs $4,500–$9,500 with us: 80% vs 96–98% AFUE prices, what moves a quote, and rebates now that 25C has ended.
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Replacing a Rosemount furnace costs $4,500–$9,500 installed with us: about $4,500–$6,000 for an 80% model and $6,500–$9,500 for 96–98% AFUE. Gas here comes from Xcel Energy or Minnesota Energy Resources depending on the address, and the rebate follows whichever utility bills you. Each quote is written, flat-rate and Manual J sized.
Most Rosemount furnace replacements swap one condensing furnace for another. If the old PVC's diameter and length suit the new furnace, it can carry over, but walkout homes on open lots often benefit from moving the termination to a spot the wind doesn't drift. Post-2000 houses are built tight, so a Manual J usually calls for a smaller furnace than the builder installed, and a two-stage or modulating model runs longer, gentler cycles in them. The air exchanger ties into the ductwork and sometimes into the furnace controls, and it gets rewired and rebalanced after the swap.
Older houses along Highway 3 downtown and some 1980s homes may still have an 80% furnace sharing a chimney with the water heater, which changes the venting plan. On rural properties, propane furnaces pair well with a heat pump. Electric service comes from Xcel Energy or Dakota Electric Association, and Dakota Electric offers a rebate for first-time dual-fuel enrollment. We handle the permit and inspection.
Updated September 23, 2026
An installed furnace from us runs about $4,500–$9,500 in Rosemount: 80% AFUE roughly $4,500–$6,000, 96–98% AFUE roughly $6,500–$9,500. Same prices in Rosemount as in every town we serve. See the furnace replacement cost guide.
Rosemount is split twice. Gas comes from Xcel Energy or Minnesota Energy Resources, and each runs its own rebates for high-efficiency furnaces and boilers. Electricity comes from Xcel or Dakota Electric Association. Dakota Electric's Energy Wise Rebates include heat pumps, tune-ups and first-time dual-fuel enrollment, though its quality-installation rebates for central AC and air-source heat pumps need a registered contractor. Xcel has its own contractor rules. Which programs apply depends on your address. 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.
Often. A heat pump heats efficiently through the mild part of the season, and the propane furnace takes over in real cold, so the tank lasts longer. Whether it pays depends on your propane price and electric rate. If Dakota Electric serves you, its Energy Wise rebates include first-time dual-fuel program enrollment; if Xcel serves you, it has its own heat pump rebates. Some rebates require a registered contractor, so ask before you sign.
Yes. Gas furnace rebates come from the gas utility, so a Minnesota Energy Resources customer applies under its program, and an Xcel Energy gas customer applies under Xcel's. Each sets its own efficiency requirements and paperwork, and both change from year to year. Check the name on your gas bill, then look up that utility's current furnace rebate before choosing equipment. Propane homes aren't covered by either.
A new furnace installed in Minnesota runs $4,500–$9,500 with us: 80% vs 96–98% AFUE prices, what moves a quote, and rebates now that 25C has ended.
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.
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Read the guideFurnace replacement in Rosemount? Call or send a request.