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What’s the Average Cost of a New Heating System?

Date: October 17, 2022

How to budget for a new oil-fired furnace or boiler installation

hvac installation massachusetts With high energy prices and record inflation, we know that many homeowners are looking for ways to save money. The best way to reduce your energy bills is to invest in more efficient heating equipment. This might cost a lot upfront, but it dramatically lowers your heating oil usage without sacrificing comfort.

With that said, you need to consider all the costs of upgrading your heating system.

Average cost of a new boiler or furnace

The average cost to replace an oil-fired furnace is between $2,500 and $6,000, although a high-efficiency unit might increase that cost to closer to $10,000. Boilers are more expensive to replace. The cost to replace a boiler system can range from $3,000 to $6,000, but a high-efficiency boiler could be as much as $12,000 to install.

Bear in mind that these numbers are national averages. Your region might be more or less expensive. Other factors can affect the cost of your heating system overhaul, including:

The size of your home

If you’ve built an expansion to your home since the last time a heating system was installed, you may need to increase heating capacity. The average home requires 100,000 Btus of heating capacity. But a larger home needs more. Here’s a breakdown of different homes’ heat needs:

 Smaller homes (700-1,300 square feet)  40,000 – 60,000 Btus
 Average-sized homes (1,300-3,000 square feet)  80,000 – 100,000 Btus
 Large homes (more than 3,000 square feet)  Over 100,000 Btus

Permits and registrations

Depending on your state or locality, you might need to file new permits and register your new boiler or furnace. On the other hand, you might qualify for rebates or tax credits if you’re installing energy-efficient equipment. Your heating installation company can help guide you through the permitting process and also tell you if there’s a benefit or discount you qualify for.

Additional plumbing and ventilation

Hopefully, your heating system upgrade will be limited to installing a new boiler or furnace and removing the old one. Connecting the new equipment to your home’s plumbing and/or ventilation system requires a skilled technician. Sometimes, it also requires the installation of new pipes, vents, and ductwork. This can add additional time and expense to your project.

Labor costs

The labor cost of your heating installation can vary based on the technician’s hourly rate and whether they have an assistant. While you might be tempted to seek out the least expensive contractor to install your furnace or boiler, remember that cheap labor can get expensive really fast. A haphazard job will lead to inefficient heating and costly breakdowns. There’s also no guarantee that a freelance tech will return to fix their work.

There are significant benefits to going with a full-service home comfort provider to install your heating system. Our certified heating specialists are experts in their field. As a company that supplies heating oil and equipment services, we are committed to getting your equipment installed correctly. We can also back up our installations with heating service plans that ensure your system runs at peak performance for years to come!

For a heating installation in greater Boston that you can feel confident in, contact Cubby Oil & Energy today.

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