"Deciding whether or not to replace home heating equipment is a critical issue for the homeowner," says Richard Roll, AHA President, "because the capital outlay must be weighed against annual energy costs, comfort of the home, and other important considerations."

The Age Factor
By today's standards, your furnace is a candidate for replacement if it's 15 years or older. Although your older furnace may still be running and providing sufficient heat, it's less energy- efficient than currently available equipment, which means your fuel bills are higher than they need to be. Also consider that your furnace is similar to your car--the older it gets, the more expensive it is to repair and maintain.

Energy Efficiency
At best, most 15 year-old furnaces are only about 65-70% fuel- efficient. In contrast, new models are 80-96% efficient. For an exact measure, a heating contractor can test your furnace's efficiency. (Just remember that's the same company that probably wants to sell you a new furnace.) Nonetheless, if a test indicates your furnace falls between 50 and 75%, begin exploring energy rebates on a new furnace. Many utilities offer rebates to encourage consumers to buy higher-efficiency furnaces.

Return on Investment
This is the key to making an intelligent financial decision about whether or not to replace your existing furnace. Add up your annual fuel bill and estimate what you would save annually if you had, for example, a 90% efficient furnace instead of your older unit. Divide the cost of a new furnace (after rebates) by the amount of estimated annual savings over time. You'll see how long it takes for the furnace to pay for itself.

Oil, Gas, or Electric
There is no magic formula for deciding what fuel is best except by determining what types of fuel are available locally and their current prices. Gas burns more cleanly and efficiently, as high as 96% efficient, while high-efficiency oil furnaces will run at about 85% efficiency. Electricity is the cleanest yet most expensive. In addition, if power lines go down, the homeowner could be without heat until power is restored--unless there is a backup system for the electrical heat. Local fuel prices can fluctuate from year to year. Your heating contractor or fuel supplier should tell you the average monthly operating cost of a proposed system.

Warranties
Warranties are worth considering as heating equipment becomes more computerized and complicated. Newer electronic components can be expensive to replace. In addition, limited access to the heating equipment can complicate routine maintenance and result in maintenance being deferred. A modest annual investment in a warranty could help with these contingencies. As always, read the proposed warranty carefully for what it does and does not cover. Installation
The most overlooked yet most critical aspect of buying a new furnace is the company hired to install it. By mismatching your equipment's specifications to your home, or improperly installing the unit, a substandard heating contractor will cost you lots of money in the long run. Be sure to check references carefully before you hire your heating contractor. Shop At Home for Heating Equipment and Other Appliances
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