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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In Shakopee, a new furnace costs $4,500–$9,500 installed with us: about $4,500–$6,000 for 80% AFUE and $6,500–$9,500 for 96–98%. Every quote is flat-rate, written and Manual J sized. Gas comes from CenterPoint Energy or Xcel Energy depending on the neighborhood, and each runs its own furnace rebate.
The builder furnaces in Shakopee's mid-1990s and 2000s subdivisions come in two kinds, and the replacement differs. A 90%-plus furnace already has PVC, and the question is whether the pipe size and run length suit the new one. An 80% builder furnace usually vents through a metal B-vent shared with the water heater, and switching to a 96–98% furnace leaves the water heater alone in a vent sized for two, which often means resizing that vent or going to a power-vent water heater. Builder sizing by square footage also means a Manual J often lands smaller.
Townhome associations may control where new PVC terminations go. Rebates follow the gas bill: CenterPoint Energy lets you use the dealer of your choice, while some Xcel Energy measures need a participating contractor. If you add a heat pump, Shakopee Public Utilities, which serves much of the city's electricity, runs its own conservation rebates. The permit comes with the job.
Updated September 23, 2026
An installed furnace from us runs about $4,500–$9,500 in Shakopee: 80% AFUE roughly $4,500–$6,000, 96–98% AFUE roughly $6,500–$9,500. Same prices in Shakopee as in every town we serve. See the furnace replacement cost guide.
Start with the two bills. If gas comes from CenterPoint Energy, its furnace and boiler rebates let you choose any dealer; if it comes from Xcel Energy, ask whether Xcel's furnace rebate needs a participating contractor. For electricity, Shakopee Public Utilities offers rebates on air-source, ground-source and ductless heat pumps that are ENERGY STAR rated, and it asks for a receipt showing the model numbers and efficiency ratings. Xcel and Minnesota Valley Electric customers follow their own utility's rules. 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.
Yes. That metal pipe is usually B-vent sized for the furnace and water heater together. Once the furnace moves to PVC, the water heater exhausts alone into a vent larger than it needs, and the flue gas can cool, condense and draft poorly. The fix is resizing the vent for the water heater alone or replacing the water heater with a power-vent model. We size it against the venting tables and include it in the quote.
Yes. A heat pump paired with a gas furnace, called dual fuel, cools in summer and heats in milder weather, with the furnace taking the cold. SPU runs its own conservation rebates with its own equipment rules, separate from Xcel Energy's, so check its current program. If CenterPoint supplies your gas, its ducted heat pump rebate applies only to that furnace pairing. Adding it now means one install instead of two.
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 guideFurnace size comes from a Manual J heat loss at a -15°F design day, not square feet. Input vs output BTU, AFUE, why old furnaces run big and what to ask for.
Read the guideBang at startup, squeal, scrape, rattle, hum, click, whistle or a rumble after shutoff: what each furnace noise means and whether it's safe to keep running.
Read the guideFurnace replacement in Shakopee? Call or send a request.