As the go-to heating experts for families from Penticton to Vernon, we hear one question more than any other: "How much will a new furnace cost?" It’s the most important piece of the puzzle for any homeowner planning an upgrade. That’s why we’ve put together this straightforward guide to replacement gas furnace prices in the Okanagan. We’ll share the typical price ranges we see in our work, explain the factors that cause costs to vary, and give you the information you need to feel prepared. Our goal is to turn a complicated decision into a clear and simple one.

Key Takeaways

Budget for a Range, Not a Single Price: Expect a new furnace to cost anywhere from $3,000 to $8,000 in the Okanagan. The final quote will be tailored to your home's needs, considering the unit's efficiency, size, and the specifics of the installation.
Stack Your Savings for a Better Deal: Don't just accept the first price you see. Combine government rebates from CleanBC with company offers, like our $500 installation discount, and ask about financing to make the investment more manageable.
Protect Your Investment with a Pro Install: The single best way to ensure your new furnace runs safely and efficiently is to have it installed by a certified technician. This protects your warranty and prevents common DIY mistakes that can lead to costly future repairs.

What Does a New Gas Furnace Cost in the Okanagan?

Figuring out the cost of a new furnace is one of the biggest questions we get from homeowners in Kelowna, Vernon, and Penticton. It’s a major investment, and you want to know what to expect. Based on our experience, a full gas furnace replacement in the Okanagan typically costs between $3,000 and $8,000. This range covers the furnace itself, professional installation, and any necessary adjustments to get your system running perfectly.

The final price tag depends heavily on the type of furnace you choose. Modern furnaces aren't a one-size-fits-all solution; they come in different stages that determine how they produce heat and how efficient they are. Understanding these differences is the first step to finding the right fit for your home and your budget. Let’s break down the three main types of gas furnaces and their typical installed costs.

Single-Stage Furnaces: $3,000-$4,500

Think of a single-stage furnace like a light switch—it’s either all the way on or all the way off. When your thermostat calls for heat, it fires up at 100% capacity until your home reaches the set temperature, then shuts down. This straightforward operation makes it the most affordable option upfront.

While it’s budget-friendly, the all-or-nothing approach can lead to noticeable temperature swings and is the least energy-efficient of the three types. It’s a solid choice for smaller homes, rental properties, or if your primary concern is the initial purchase price. According to a buying guide from Consumer Reports, a basic furnace unit can start around $3,000.

Two-Stage Furnaces: $4,000-$6,000

A two-stage furnace offers more finesse. It has two levels of heat output: a low setting that runs about 60-70% of the time, and a high setting for those frigid Okanagan winter days. By running on the lower, more efficient setting most of the time, it provides more consistent heat with fewer ups and downs.

This approach uses less energy, runs more quietly, and does a better job of filtering your home’s air because the fan runs for longer periods. For most homeowners, a two-stage furnace hits the sweet spot between upfront cost and long-term comfort and efficiency. It’s a great all-around choice for reliable, even heating.

Modulating Furnaces: $5,500-$8,000

A modulating furnace is the top-of-the-line option, operating more like a dimmer switch than an on/off switch. It can adjust its heat output in tiny, precise increments to match your home's heating needs exactly. This means it runs almost continuously at a very low, steady level, maintaining your desired temperature with incredible accuracy.

The result is the most comfortable, quiet, and energy-efficient performance available. While the initial investment is higher, a modulating furnace can deliver significant savings on your monthly energy bills. If you prioritize ultimate comfort and long-term efficiency, this is the best choice for your home. You can learn more about the high-efficiency models we install on our furnace services page.

Factoring in Labor and Installation

The price of the furnace unit itself is only part of the equation. Professional installation is a critical component that ensures your system runs safely, efficiently, and meets warranty requirements. Installation costs cover the skilled labor of our NATE-certified technicians, removal and disposal of your old unit, any necessary ductwork or venting modifications, and permits.

Industry data shows that installation can be a significant portion of the total cost. For example, some experts find that homeowners can spend between $1,600 and $6,000 on furnace replacement labor and materials. This is why getting an all-in quote is so important. At TruFinity, we provide upfront pricing so you know the full cost before we begin any work.

What Factors Drive Your Final Replacement Price?

That $3,000 to $8,000 price range for a new furnace is a big one, and you’re probably wondering where your home might fall on that spectrum. The final number on your quote isn't arbitrary; it’s a detailed calculation based on your specific home, your comfort goals, and the equipment you choose. Think of it less like buying a product off the shelf and more like a custom home improvement project. Several key variables come into play, from the raw power of the unit to the complexity of the installation itself. Understanding these factors will help you make sense of any estimate you receive and ensure you’re comparing your options fairly. At TruFinity, we believe in complete transparency, which is why we provide upfront pricing after a thorough assessment of your home.

Furnace Size (BTUs)

First up is the furnace’s heating capacity, measured in British Thermal Units (BTUs). It’s easy to assume that a bigger, more powerful furnace is always better, but that’s not the case. A unit that’s too large for your home will turn on and off constantly—a process called “short cycling”—which wastes energy, creates uneven temperatures, and puts extra wear on the components. One that’s too small will run constantly without ever reaching your desired temperature. A professional technician calculates the perfect size for your home based on its square footage, insulation levels, number of windows, and the local Okanagan climate to ensure efficient, consistent heat.

Energy Efficiency (AFUE Rating)

A furnace’s efficiency is measured by its Annual Fuel Utilization Efficiency (AFUE) rating. This percentage tells you how much of the fuel it consumes is converted directly into heat for your home. For example, a furnace with an 80% AFUE rating turns 80 cents of every dollar you spend on gas into warmth, while the other 20 cents is lost. High-efficiency models with ratings of 95% or more cost more upfront but can significantly lower your monthly energy bills. Choosing the right AFUE rating is about balancing the initial investment with long-term savings, a decision we can help you calculate during a consultation.

Brand and Model

Just like with cars or appliances, the brand and model of the furnace you choose play a big role in the price. We partner with trusted manufacturers like Lennox and Bosch because they have a proven track record of reliability and performance. Within each brand, you’ll find different tiers of models. A basic, single-stage furnace is the most budget-friendly option, while more advanced two-stage or modulating furnaces offer quieter operation and more precise temperature control at a higher price point. Our team can explain the practical differences to help you find the right fit for your home and budget.

Installation Complexity

The cost of labor is a major component of your final price, and it’s directly tied to the complexity of the job. A simple, straightforward replacement in an easily accessible space might only take a few hours. However, if the installation requires significant modifications—like working in a tight crawlspace, upgrading electrical circuits, or re-routing gas and vent lines—it will take more time and expertise. Our NATE-certified technicians are equipped to handle any scenario, ensuring your new furnace services are installed safely and correctly, no matter the challenges.

Your Home's Layout

Your home’s existing infrastructure is another key factor. If your current ductwork is old, improperly sized, or in poor condition, it may need to be repaired or replaced to support your new, high-efficiency furnace. A great furnace can’t perform well if the system delivering the warm air is leaky or restrictive. We always perform a 25-point system inspection to assess your entire heating system, not just the furnace unit. This ensures we identify any potential issues with ductwork or ventilation upfront so there are no surprises on installation day.

Local Permit Requirements

A safe and legal furnace installation requires a permit from your local municipality, whether you live in Kelowna, Vernon, or Penticton. This is a non-negotiable step that ensures the work is done to code, protecting your home and your family. The cost of the permit itself, which typically ranges from $100 to $400, will be included in your overall project quote. Any contractor who suggests skipping the permit process is cutting corners and putting you at risk. We handle the entire permitting process for you, giving you one less thing to worry about.

What Other Costs Should You Plan For?

The price tag on the furnace itself is just the starting point. To get a complete picture of your investment, you need to account for a few other essential services and potential upgrades that come with a full replacement. These costs ensure your new system runs safely, efficiently, and meets local codes. Planning for them ahead of time helps you avoid surprises and create a realistic budget for your home comfort project.

Permits and Post-Installation Inspections

Before any work begins, a professional installer will secure the necessary permits. This isn't just red tape; it's a crucial step that ensures your new furnace installation is compliant with local safety and building codes. The cost for permits and the required follow-up inspections typically runs between $50 and $300. Think of it as an investment in your family's safety and your peace of mind. A properly permitted job confirms that everything was installed correctly, protecting you from potential hazards down the road.

Ductwork Changes or Repairs

Your furnace can only work as well as the ductwork that distributes the warm air. If your existing ducts are old, leaky, or not the right size for your new, more efficient unit, they may need repairs or modifications. Addressing these issues is key to getting the performance you're paying for. Expect to budget an additional $300 to $600 for each duct run that needs to be repaired or replaced. Properly sealed and sized ductwork ensures you aren't losing heated air (and money) in your walls or crawlspace.

Electrical and Gas Line Updates

Sometimes, a new furnace requires more power or a different gas line connection than your old one. Bringing your home’s infrastructure up to speed is a non-negotiable part of a safe installation. Depending on the extent of the work, updating electrical circuits or gas lines can add $200 to $700 to your total cost. Our certified technicians handle these adjustments to ensure your new system has the stable, safe power and fuel it needs to operate reliably for years to come.

A New Smart Thermostat

Pairing your new furnace with a new thermostat is always a good idea, and upgrading to a smart model is even better. A modern thermostat provides more accurate temperature control, and a smart thermostat can learn your habits and optimize heating schedules to save you money on energy bills. The cost for a new thermostat, including installation, generally falls between $150 and $400. It’s a small price for a significant improvement in both comfort and long-term efficiency.

Removing Your Old Furnace

Your old furnace won't just disappear. It needs to be safely disconnected, removed from your home, and disposed of according to environmental regulations. Most professional installation quotes will include this service, but it's always smart to confirm. The cost for removal and disposal is typically between $50 and $200. Handling this properly is important, as old units contain materials that require special handling, and it’s a task best left to the pros.

The Added Cost of an Emergency Replacement

When a furnace fails unexpectedly in the middle of a cold snap, you don't have the luxury of time to shop around. An emergency replacement will almost always cost more due to after-hours labor rates and urgent scheduling. While a planned replacement might fall within our typical range, an emergency furnace replacement can easily exceed $4,700 and sometimes climb past $6,000. This is why we always recommend being proactive. If your furnace is getting old, scheduling a replacement before it breaks down is the best way to control costs and avoid a stressful, chilly situation.

Should You Repair or Replace Your Furnace?

It’s a question every Okanagan homeowner faces eventually. Your furnace starts making a strange noise or your heating bills creep up, and you have to decide: do you pay for another repair or invest in a full replacement? The answer isn't always straightforward, but weighing the short-term cost of a fix against the long-term value of a new system is the best place to start.

Making this call often comes down to a few key factors: the age of your furnace, the cost and frequency of repairs, and its overall performance. A sudden breakdown forces your hand, but even a furnace that’s still running might be costing you more than you realize in wasted energy and looming repair bills. Before you make a final decision, getting a professional opinion is crucial. A thorough 25-point inspection can give you a clear picture of your furnace's health and help you understand whether a simple repair will suffice or if a replacement is the more sensible financial choice.

When a Replacement Is the Smarter Choice

Sometimes, your furnace gives you clear signals that its best days are behind it. If you’re nodding along to any of these points, a replacement is likely your most cost-effective option in the long run. It may be time to consider a new furnace if your current one is over 15 years old, your energy bills have spiked without explanation, or you’re on a first-name basis with your repair technician. Inconsistent heating, like rooms that are always cold or strange rattling noises, are also signs that major components are starting to fail. These issues rarely fix themselves and often point to a system that’s losing efficiency and reliability.

Key Factors: Age and Efficiency

The two biggest factors in the repair-or-replace debate are age and efficiency. A furnace that’s over 15 years old is approaching the end of its typical lifespan. Even if it’s still working, it’s likely operating at a much lower efficiency than modern units, wasting energy and money every month. A new high-efficiency furnace can last 15 to 30 years and comes with a solid warranty, giving you peace of mind and predictable performance. Investing in a new system isn't just about avoiding future repairs; it's about upgrading to better technology that provides more consistent comfort for less cost.

Common Myths About Furnace Costs

Many homeowners believe that the biggest or most expensive furnace is automatically the best choice, but this is a common furnace myth that can lead to wasted money and poor performance. The most important factor is getting a furnace that is correctly sized for your home. A unit that’s too powerful will turn on and off constantly—a process called short-cycling—which wastes energy and puts excessive strain on its components. A professional will perform calculations based on your home’s square footage, insulation, and layout to recommend a unit that provides steady, efficient heat without the extra cost.

A Simple Rule for Making the Call

If you’re looking for a straightforward way to decide, here’s a reliable rule of thumb: if a proposed repair costs more than one-third of the price of a new furnace, it’s usually better to replace it. This is especially true if your furnace is already more than 15 years old. Pouring hundreds or even thousands of dollars into an aging system is often a temporary fix for a problem that will only get worse. Instead of paying for a costly repair today and facing another one next winter, that money is better invested in a new, reliable system that will save you money for years to come.

How to Save Money on Your Furnace Replacement

A new furnace is a significant investment, but the final price tag isn't set in stone. While it’s tempting to focus only on the upfront cost, a little planning can reveal several ways to lower both the initial expense and the long-term cost of ownership. From taking advantage of local programs to simply choosing the right time to buy, you have more control over your budget than you might think.

Making a smart financial decision now means you’ll enjoy reliable, efficient heating for years without overspending. Here are five practical steps you can take to save money on your furnace replacement.

Find Government Rebates and Incentives

Before you buy, always check for government programs that can reduce your costs. Both federal and provincial governments often offer rebates and tax credits to encourage homeowners to install energy-efficient appliances. These programs can significantly cut down the price of a new high-efficiency furnace. The best place for Okanagan residents to start is the CleanBC Better Homes program, which lists available rebates for furnaces, heat pumps, and other home energy upgrades. These incentives change, so it’s worth checking for the latest offers before you commit to an installation.

Use TruFinity's $500 Installation Discount

We believe that home comfort should be accessible, which is why we provide clear ways to save. TruFinity offers a $500 discount on any new furnace, air conditioner, or heat pump installation. This isn't a limited-time gimmick; it's a straightforward offer to help you manage the cost of a major home upgrade. When you get a quote from our team, we’ll automatically apply this discount. You can see our current rebates and offers to learn more about how we help Okanagan homeowners save on essential home services.

Explore Financing and Payment Plans

A large, one-time payment can be a major hurdle for many households. That’s why financing is such a helpful tool. Instead of paying for the entire furnace replacement upfront, you can spread the cost over time with manageable monthly payments. This approach makes it easier to afford the right high-efficiency unit for your home without draining your savings. We offer flexible financing options to fit different budgets, allowing you to get the comfort you need now and pay for it in a way that works for you.

Choose the Best Time of Year to Buy

Timing your purchase can lead to significant savings. The busiest time for HVAC contractors is during the first cold snap of fall or in the dead of winter when furnaces are most likely to fail. If you can plan your replacement during the off-season—late spring through early fall—you may find more scheduling flexibility and better pricing. Proactive replacement not only helps you avoid the stress and higher costs of an emergency call but can also save you 15% or more on the total installation.

Calculate Your Long-Term Energy Savings

The cheapest furnace isn't always the one with the lowest price tag. Focusing on long-term value is key. Upgrading from an older, inefficient furnace to a new high-efficiency model with a 95% AFUE rating or higher can save you hundreds of dollars a year on your heating bills. Over the 15- to 20-year lifespan of the unit, those savings add up to thousands. When you get a quote for our furnace services, we can help you calculate the potential energy savings to see how a better furnace pays for itself over time.

Why a Professional Install Protects Your Investment

A new furnace is one of the most important investments you'll make in your home. When you’re looking at the final price, it can be tempting to find ways to cut costs, but the installation is one area where you shouldn't compromise. Think of a professional installation not as an expense, but as insurance for your new equipment. A furnace is a complex appliance that involves gas lines, high-voltage electricity, and proper ventilation—all things that need to be handled with precision to ensure your family's safety and comfort.

Hiring a certified professional guarantees that your furnace is installed correctly according to manufacturer specifications and local building codes. This not only protects your warranty but also ensures the system runs at peak efficiency, saving you money on energy bills for years to come. At TruFinity, our commitment to "True Service, Infinite Care" starts with a flawless installation, giving you the peace of mind that your investment is secure from day one. Our NATE-certified technicians have the training to handle every detail, ensuring your home stays warm and safe all winter long.

The Importance of Certified Technicians

When you hire a professional, you’re paying for their expertise and training. Our team includes NATE-certified technicians, and our co-founder, Edrice Ferdoussi, is a Red Seal Certified Plumber and Class B Gasfitter. This level of qualification means we understand the technical details that make the difference between a furnace that just works and one that works perfectly. A licensed professional ensures your system is sized correctly for your home, vented properly to prevent carbon monoxide risks, and calibrated for optimal performance. An improper installation can lead to reduced efficiency, frequent breakdowns, and even void your manufacturer’s warranty, which is why choosing a certified team for your furnace services is so important.

What Our 25-Point Inspection Guarantees

A great installation is more than just connecting the new unit. It’s a comprehensive process that sets your system up for a long, healthy life. As part of our process, we perform a detailed 25-point inspection to ensure every component of your heating system is functioning correctly. This includes checking gas pressure, inspecting the heat exchanger, testing safety controls, and verifying thermostat calibration. By being this thorough, we catch small issues before they become major headaches. This meticulous approach guarantees your new furnace operates safely and efficiently, giving you reliable warmth and preventing the kind of unexpected breakdowns that always seem to happen on the coldest night of the year.

How Warranties Protect You

A new furnace typically comes with a manufacturer's warranty of 5 to 10 years, which is a fantastic safety net for your investment. However, most manufacturers state that the warranty is only valid if the unit is installed by a licensed HVAC professional. A DIY or improper installation can immediately void that coverage, leaving you responsible for the full cost of any future repairs. By working with a trusted company, you ensure all the paperwork is filed correctly and the installation meets the manufacturer's strict standards. This keeps your warranty intact, protecting you from unexpected expenses and confirming that your system is in good hands, a promise backed by our customer reviews.

Access to High-Quality Brands

When you work with a professional HVAC contractor, you gain access to top-tier equipment that isn't always available at big-box stores. We partner with leading brands like Lennox and Bosch because we know they deliver reliable performance and excellent long-term value. More importantly, our technicians can help you choose the right brand and model for your home's specific needs, considering factors like square footage, insulation, and your family's budget. We’ll help you understand the differences between models and efficiency ratings so you can make an informed decision, rather than just picking whatever is on sale.

Avoid Common (and Costly) DIY Mistakes

Trying to install a furnace yourself to save a few dollars can easily backfire. Common DIY mistakes—like choosing the wrong size unit, creating an air leak in the ductwork, or improperly venting the exhaust—can lead to major problems. An oversized furnace will cycle on and off too frequently, wasting energy and wearing out parts, while an undersized one will struggle to heat your home. Even worse, incorrect venting can release dangerous carbon monoxide into your home. These mistakes often require expensive professional repairs that cost far more than the initial installation would have. With flexible financing options, getting a professional installation is more accessible than you might think and helps you avoid these costly errors.

How to Get an Accurate Quote for Your Home

Getting a furnace quote can feel like a big task, but a little preparation makes all the difference. Your goal is to get a clear, comprehensive estimate that covers everything, so there are no surprises later on. An accurate quote is more than just a number; it’s a detailed plan for your home’s comfort and safety. This process should always start with a thorough in-home assessment, which is the only way a technician can see exactly what your space needs and give you a price that truly reflects the scope of the work.

What to Expect During Our Consultation

The best way to understand the real cost of a new furnace is to have a certified technician evaluate your home’s specific layout and needs. A quote given over the phone is just a guess. During our free, no-obligation consultation, a TruFinity expert will perform a detailed assessment, including our 25-point system inspection. We’ll measure your home, check your existing ductwork, and discuss your family’s heating needs and budget. This allows us to recommend the right size and efficiency for your space and provide a clear, upfront price for a professional furnace installation. You’ll get a complete picture with no hidden fees, so you can make a confident decision.

Key Questions to Ask Your Contractor

When you receive an estimate, it’s your chance to interview the contractor and make sure they’re the right fit for the job. Don’t hesitate to ask detailed questions. Start with the basics: Are your technicians licensed and insured? What warranties are included with the furnace and the labor? Ask for a detailed breakdown of the costs, including the equipment, installation, permits, and removal of your old unit. It’s also a great idea to ask about their experience in the Okanagan and check their customer reviews. A trustworthy contractor will be happy to provide clear answers and prove their qualifications.

Red Flags to Watch Out For

A few warning signs can help you spot a less-than-reputable operator. Be cautious of any contractor who gives you a firm price without visiting your home or pressures you into making an immediate decision with a "today only" deal. Vague estimates that don’t itemize costs are another major red flag. You should also be wary of anyone pushing for a major repair when your furnace is over 15 years old, especially if the repair cost is more than a third of the price of a new unit. A professional will give you honest advice on whether a repair or replacement makes more financial sense in the long run.

How to Compare Estimates Fairly

When you have multiple quotes in hand, it’s tempting to just look at the final price. However, you need to compare them line by line to see what you’re really getting. Make sure each estimate is for a furnace of the same size (BTUs) and efficiency rating (AFUE). Check the warranty terms for both parts and labor. Does one quote include a smart thermostat or ductwork modifications while another doesn’t? Understanding the typical cost breakdown—where about 60% is for the unit, 25% for labor, and 15% for permits and other costs—can help you see where prices differ. Also, consider the company’s reputation and available financing options to make the best overall choice.

Frequently Asked Questions

How much should I budget for a new furnace in the Okanagan? For a complete replacement, including professional installation, homeowners in areas like Kelowna and Penticton should plan for a budget between $3,000 and $8,000. The final cost depends on the furnace's efficiency, size, and the specific requirements of your home, but this range covers most standard installations.

How long does a typical furnace installation take? A straightforward furnace replacement can usually be completed in a single day, often within four to eight hours. If your project requires more complex work, such as significant ductwork modifications or electrical updates, it might extend into a second day. We always provide a clear timeline with our upfront quote so you know exactly what to expect.

What's the real difference between a basic furnace and a high-end one? The main difference comes down to comfort and long-term efficiency. A basic, single-stage furnace works like a light switch—it's either on at full blast or completely off. A more advanced modulating furnace operates like a dimmer switch, making tiny adjustments to provide incredibly consistent heat. While it costs more initially, it runs more quietly and can save you a significant amount on your monthly energy bills.

Why can't I get an exact furnace price over the phone? An accurate quote requires an in-home assessment because every home is different. A technician needs to see your current setup, evaluate your ductwork, and calculate the correct furnace size for your home's square footage and layout. A price given over the phone is just a guess, whereas an in-person consultation ensures you get a firm, all-inclusive price with no surprises.

Are there ways to make a new furnace more affordable? Absolutely. We recommend looking into financing options, which allow you to spread the cost over time with manageable monthly payments. You should also check for provincial rebates, like those from CleanBC, and ask us about our current offers, such as our $500 installation discount. Planning your replacement during the off-season, like spring or summer, can also lead to better pricing.

Replacement Gas Furnace Prices: A Buyer's Guide