A furnace upgrade can be an intimidating expense, often costing thousands of dollars. If your heating system is nearing the end of its life, you have no choice but to get a new one. An investment in a high-efficiency furnace is a wise move even though the initial cost is higher. The savings on your utility bills will start adding up quickly, and over the unit’s lifetime, these savings can easily compensate for the system’s initial costs.
A less-expensive furnace system may at first sound like an economical choice. Don’t let the lower price mislead you. In some cases, what starts out as a low initial investment can turn into a long-term financial drain.
A cheaper furnace will likely have much higher lifetime operating costs than a more expensive unit. Since it’s less efficient, fuel costs will be higher. Repairs may be needed more often. A less expensive heating or cooling system may fail irreparably much sooner than expected, requiring a complete replacement.
Take the time to do a life cycle cost analysis before making an HVAC system purchase. This analysis will help you choose the best equipment at the right price for your budget and home size. It takes into consideration three important factors:
- Cost and benefits of ownership, including initial price, potential expenditures over time, and non-financial benefits such as improved reliability or quieter operation
- Time period, which includes the amount of time the system is owned and operated, most often 15 to 30 years.
- Discount rate, which is a rate applied to future costs of system operation as compared to current costs for the same thing. Discount rates account for economic changes, cost increases and differences in buying power. The U.S. Department of Energy publishes a revised discount rate annually.
For more than 30 years, Ace Hardware Home Services, Inc. has provided trustworthy heating and cooling services to Dayton and the surrounding area. We can help you evaluate the price and lifetime cost of any furnace upgrade you’re considering and identify the best system for your money. Contact us today.
Our goal is to help educate our customers about energy and home comfort issues (specific to HVAC systems). For more information about furnaces and other HVAC topics, download our free Home Comfort Resource guide.
Ace Hardware Home Services services the Ohio’s Miami Valley. Visit our website to see our special offers and get started today!
