Before you purchase a new home furnace for your house, it is highly suggested that you thoroughly research the type of furnace or HVAC system that would best be able to meet the needs of your household.
The most common furnace fuels in Canada are natural gas, propane, electricity, and oil. The cost of a new furnace and operational costs over the years will depend on which fuel you use.
This breakdown of furnace prices and furnace fuel prices in Canada will help you understand how fuel prices can impact costs and what you can expect to pay for different furnace types.
Check out our infographic examining heating systems and fuel types used in Canada.
Understanding Furnace Prices and Furnace Fuel Prices
The average cost of a new furnace in Canada is between $4,000 and $6,500, including installation, which can account for $1,000+ of that cost.
But the actual cost will depend on many things, including what type of fuel the furnace uses.
Furthermore, furnace fuel prices for natural gas, propane, electricity, and oil will also determine ongoing operational costs.
It can be difficult to compare heating costs because fuel prices are measured in different units. But after reading this, you’ll have a much better idea of what you can expect to pay for different furnace types and heating costs depending on the type of furnace you have.
Factors Influencing Furnace Prices in Canada
Many factors will determine the actual cost of a new furnace, including:
- Furnace manufacturer or brand
- Make and model
- BTU output
- Efficiency rating
- Where you live*
- Special features and technologies
- Furnace type (electric, propane, natural gas, oil)
- Furnace kind (single-speed, two-speed, modulating, variable)
- Installation and labour
*A note about location: Furnace prices tend to be lower in major metropolitan areas such as Toronto and the GTA, Hamilton, Kitchener-Waterloo, and Ottawa, as there is more competition among heating and cooling companies.
Fuel Types for Home Heating: Pros and Cons
Natural gas pros: Furnace fuel prices tend to be lower compared to other types of furnaces, it has lower emissions than oil/coal, it’s readily available throughout most of Canada, and you don’t have to store it on-site.
Natural gas cons: It’s not available in many rural and remote areas, it does produce greenhouse gas emissions, there are risks associated with combustion and carbon monoxide, the hookup must be done by a professional, and there is a small risk of explosion.
Propane pros: It’s a cleaner burning fuel compared to natural gas and oil, it’s available in places where natural gas isn’t, it’s a very efficient fuel, and it can be used for multiple appliances.
Propane cons: It’s more expensive than natural gas, and it requires a storage tank on-site that must be filled and inspected by a professional.
Oil pros: It produces a lot of BTUs of heat, it’s available in places without natural gas infrastructure, and oil furnaces are long-lasting.
Oil cons: It has much higher emissions than other fuel types, there’s a higher environmental impact, it’s more expensive than natural gas or propane, it must be stored on-site in a tank, and there’s a risk of leaks.
Electricity pros: Electric furnaces are highly efficient, electricity is available just about everywhere, the installation is easier and often cheaper compared to fossil fuel furnaces, maintenance requirements tend to be lower, there are multiple options for heating methods (furnaces and heat pumps), and it’s better for the environment if your electricity comes from a renewable source.
Electricity cons: It tends to be more expensive than natural gas or propane, it doesn’t have the same heating power as fossil fuels, and the heat distribution may not be as good.
Read more about the different furnace types.
A Comparison of Furnace Prices and Furnace Fuel Prices for Gas, Propane, Electric, and Oil Furnaces
Natural Gas Furnaces
No matter where you live just so long as you are able to access natural gas you can have a highly effective and well priced gas forced air furnace at your house at a reasonable price. This goes for both natural gas as well as furnaces that use propane gas.
Getting the correct size of furnace unit for your home is important since if it is too big you will end up having a gas furnace that will short cycle on and off leading to inadequate heating for your home. On the other hand one that is too small will run all the time while not properly heating the home thus wasting energy.
Home natural gas furnaces in Ontario and the rest of Canada usually cost between $4,000 and $8000.
In terms of operation, natural gas furnace fuel prices cost an average of $5.50 to $8.00 per day to heat a home, which works out to between $1,155 and $1,680 per year.
Propane Furnaces
Propane furnaces are popular in areas that don’t have access to natural gas pipeline infrastructure, namely, rural areas. Prices range from $4,000 to $7500 on the high end, including conversion costs. They function similarly to gas furnaces and are comparable in cost. Propane is generally delivered and stored on your property in a large tank.
Based on current furnace fuel prices, it costs the average Canadian between $2,000 and $3,000 to heat a home with propane each winter.
Electric Furnaces
Electric furnaces are more rarely found in urban homes as there are often higher running costs by way of electric bills. They may be used in places where winters are not harsh. The brand of electric furnace you decide to have installed in your house will have a major impact on the price. In the case of electric furnaces brand is the biggest determinant to price. The installation is slightly higher than that of a gas furnace as the higher the brand is the more one is likely to attract more costly HVACs who are more qualified.
The average electric furnace can cost anywhere from $2000 to more than $7000 including installation. Just like with the gas furnace you need to get the right size for your home in order to provide optimum heating efficiency and efficacy.
Furnace fuel prices for electric furnaces vary widely throughout Canada, and you might pay anywhere between $290 and $1,450 a month to heat your home with an electric furnace.
Oil Furnaces
Oil furnaces are also in use in various homes especially in those places where heating oil is more common than gas. These ones use forced hot air to spread out heat in the home and the average oil furnace will cost around $3000+ while the cost including installation could go up to $4000+.
On average, it costs Canadians between $2,000 to $5,500 per year to heat their home with an oil furnace.
Exploring Alternative Heating Options: Wood-Burning Furnaces
There are other furnace types such as wood-burning furnaces which tend to be more popular in the country. These can be cheaper for someone who owns lots of land and has access to plentiful firewood, but generally does not have the ease, convenience, and efficiency of natural gas and other modern furnaces. In Canada, new wood furnaces typically retail for between $1500 and $4500.
Depending on furnace fuel prices in your area, you might pay between $800 to $3,200 each year to heat your home with a wood furnace.
FAQ
Which furnace fuel prices are the cheapest for heating a home?
Natural gas typically has the cheapest furnace fuel rates compared to propane, oil, and electric furnaces.
Which furnace fuel is cheapest per BTU?
Again, natural gas is typically the cheapest per BTU, but it depends on the cost of propane in your area. Propane is actually more efficient than natural gas, but the prices tend to be higher.
What is the most expensive fuel for home heating?
Oil is generally the most expensive furnace fuel for home heating.
Related Posts
-
Finding your house to be very dusty and not sure the root cause? Could it…
-
It is estimated that around 45% of Canada's emissions come from the burning of fossil…
-
Buying a new furnace or air conditioner is a big investment, so to budget properly,…
Get Quotes
How soon are you looking to buy?*
