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Furnace Replacement in Watertown, MN

A furnace replacement in Watertown runs $4,500–$9,500 installed: about $4,500–$6,000 for 80% AFUE and $6,500–$9,500 for 96–98%. Our quote is written, flat-rate and sized with a Manual J. Township homes on propane can get the same condensing furnaces, set up for LP.

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Furnace replacement in Watertown: $79 trip charge, waived with the repair.

We'll call or text you back about this request only. Rather talk now? Call 612-429-3465.

Furnace replacement calls in Watertown homes

Replacement in Watertown's newer neighborhoods is mostly first-time: an original furnace from the 1990s or 2000s coming out of a split-entry or two-story, often with the AC due at the same time. A Manual J resets the size, and the PVC venting and condensate drain are usually already in place, though pipe size and termination clearances have to match the new furnace's manual.

Near downtown, the old brick chimney decides a lot. An 80% furnace can stay on it with a proper liner; a 96–98% condensing furnace skips it entirely but orphans the water heater, which then needs its own liner or a power-vent model. Low basements can make a tall furnace and coil stack tight. In the township, a dual-fuel heat pump is worth pricing alongside a propane furnace. Xcel Energy handles both gas and electric rebates in town; ask whether they need a participating contractor.

Updated September 23, 2026

How much does a new furnace cost in Watertown?

An installed furnace from us runs about $4,500–$9,500 in Watertown: 80% AFUE roughly $4,500–$6,000, 96–98% AFUE roughly $6,500–$9,500. Same prices in Watertown as in every town we serve. See the furnace replacement cost guide.

Are there rebates for a new furnace in Watertown?

Watertown is one of the towns where Xcel Energy supplies both gas and electricity, so rebates for a high-efficiency furnace, a heat pump or a central air conditioner all come from Xcel, each with its own rules. The gas furnace rebate points to a participating contractor, and ducted heat pump rebates call for a Trade Partner Network contractor. Xcel's AC Rewards program pays an annual reward for a connected smart thermostat. Township acreage on propane won't get a gas furnace rebate, but a heat pump can still qualify on Xcel electric. Rebate programs change every year, so check the utility's current terms before you buy.

Our guides: Xcel and CenterPoint rebates, heat pump rebates.

Outdoor unit of a ductless heat pump on a ledge beside a house wall and window

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 Watertown: questions

Can a Watertown township home on propane use a high-efficiency furnace?

Yes. Most 96–98% furnaces can be set up for propane with the manufacturer's conversion kit, and the condensing design gets more heat out of every gallon, which matters more at propane prices. A dual-fuel setup goes a step further: a heat pump handles milder weather and the propane furnace covers deep cold. We quote the furnace alone and the dual-fuel option side by side.

What happens to the old brick chimney when a Watertown house switches to a 96% furnace?

The furnace stops using it, but a gas water heater often still does, and a chimney sized for two appliances is too big for one small, cool flue. Condensation can damage the masonry and weaken the draft. The fix is a correctly sized liner or a power-vent water heater. If nothing else vents into the chimney, it can be capped. The written quote includes the chimney plan.

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Furnace replacement in Watertown? Call or send a request.

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We'll call or text you back about this request only. Rather talk now? Call 612-429-3465.

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