Most furnaces are designed to last between 10 and 15 years. We're not saying that your furnace will break down after 10 to 15 years, but its performance is likely to drop noticeably in that time.

When an older furnace starts to go, you'll pay more on your energy bills but see less consistent heating throughout the winter months. 

If you have an older furnace and are starting to think about a replacement, you probably want to know what it will cost. This article gives an overview of the estimated costs, incentives, and financing options to replace a furnace in Portland or Bend, Oregon. 

Before getting into the details, please note that pricing and cash incentives are subject to change. For the latest, please give us a call at 541.330.8767 or self schedule an appointment:

Cost of the Gas Furnace

Legally, you could install a furnace with an efficiency as low as 78%. If you installed such a low efficiency furnace, you’d pay less upfront but more over time. Only 78% of the fuel that you consume would become heat for your home. The rest would go to waste - driving up your heating bills and polluting the air around the home.

Here at GreenSavers, we’re committed to installing energy efficient furnaces that perform reliably for our clients over a long period of time. Most clients in Portland and Bend, Oregon go with the Lennox Elite Series 96% Efficient Gas Furnace. 

This furnace costs about $5,500 depending on a few variables. For example, you'll likely pay less if you answer “No!” to all of the following questions:

• Is the location of your existing furnace difficult to access? 

• Do your electrical or gas lines need to be moved? 

• Does your ducting need to be updated? 

  
  

Gas Furnace Incentives

Most homeowners in Portland and Bend can access the $550 cash incentive for a new gas furnace from Energy Trust of Oregon. If you live in Central Oregon and get natural gas from Cascade Natural, click here to learn more about incentives to replace your furnace. 

For a limited time, the Energy Trust of Oregon is increasing their incentive from $550 to $1,000 for new gas furnace installations. The increased incentive only applies to income-qualified homeowners, single-family rentals, and multifamily properties (e.g. condos, townhomes). 

To get the increased incentive, you’d need to install the new furnace before March 2021. Start by giving us a call at 541.330.8767 to find out if you are eligible and schedule an appointment.

Financing a gas furnace replacement

We work with a team of local lending partners to provide financing for our clients. To finance a furnace replacement, you could work with one of our lending partners or go with another bank or credit union that you trust.

Here are three estimated monthly payments with different lenders and terms. 

• Selco: $40.68 (4.00%, 15-year term)

• Advantis: $60.37 (5.75%, 10-year term)

• Craft3: $61.03 (5.99%, 10-year term for income qualified homeowners)

• Banner Bank: $80.32 (5.99%, 7-year term)

Please note that these estimates have not been independently verified by the lenders. You would need to call or schedule a free estimate to get lending options for your project.

Brining it all together

We'd like to close with an example of what a gas furnace replacement would cost. 

There are lots of assumptions that go into an example like this (more in a moment). It’s very likely that your costs, financing, and payback will look different. That said, we’re providing the example to give a fuller picture of the financial considerations that go into replacing a furnace in Portland or Bend, Oregon. We hope it’s helpful to you.

The assumptions: Sarah wants to replace her 80% efficient gas furnace. She qualifies for the Savings Within Reach program because her household (married with two kids) earns less than $99,934. This means that she has access to the Energy Trust’s increased incentive of $1,000 to replace her furnace before March 2021. She can also finance the furnace replacement with a loan from Craft3 at 5.99% with a 10-year term. 

Here’s what her costs and payback would look like:

• Total Cost: $5,500

• Cash Incentives: $1,000

• Tax Credit: $150

• Net Cost: $4,350

• Monthly Loan Payment: $61.03

• Annual savings on heating bills: 16%

• Estimated Payback: 10-years

Want to learn more about the costs and cash incentives to replace your furnace? Please give us a call at 541.330.8767 or self-schedule an appointment in either Portland or Bend, Oregon.

Learn More About Heating

Start by visiting our heating and cooling resource pages for homeowners in Portland or Bend, Oregon. You can also keep reading our latest blog articles about energy efficient home heating.