How to Calculate When That High Efficiency Furnace Will Pay Off
Buying any appliance for your home is a big investment that takes some careful research. When you’ve made the decision to buy a new high efficiency furnace, you’re looking at making an investment in the comfort and safety of your entire family through the seasons. When you take into consideration that the Environmental Protection Agency reports older models convert up to 50 per cent of incoming energy into heat and for newer models those numbers are as high as 90 per cent, it becomes even more clear why the newer furnace is the right choice. While they are more expensive, there’s a simple way to calculate the payoff period so you’ll see the upside to this investment. To determine your final cost of the furnace:
- Add the cost of purchasing and installing a new furnace.
- Subtract any manufacturer or government rebates that you get with the new unit.
To determine your energy cost savings:
- Add up the estimated energy use for your old furnace
- Add up the estimated energy use for the new furnace (your contractor can help you determine these numbers)
- Subtract the cost of operating the new furnace over the older one.
Finally, take the final cost of the furnace and divide it by the energy cost savings number. That will give you the final answer as to how long it will take for the new furnace to pay for itself in energy cost savings. Generally, people find they can pay off the new unit in a little over four and a half years. It’s a good idea to stay in your home for as long as the payoff period to get the most from your investment. Oosterveld Heating and Air Conditioning is a family owned and operated business servicing Guelph and the surrounding areas. Call today!