A London Homeowner's Guide to High-Efficiency Furnace Installation Costs & Savings
Thinking about upgrading your furnace? Learn what a new high-efficiency system costs in London, Ontario, and how you can save money with rebates and lower energy bills.
When your old furnace starts to fail, the question isn't just about what a new one costs, but also how much you can save in the long run. High-efficiency furnaces are a smart investment, and understanding the factors that influence their installation cost can help you budget and prepare. This guide will walk you through what to expect for furnace installation costs in London, Ontario, and how you can maximize your savings with Enbridge rebates up to $650.
Breaking Down the Cost of a New High-Efficiency Furnace
The total cost of a new furnace can vary widely based on several key factors. Here's what affects the final price:
Furnace Efficiency (AFUE)
The Annual Fuel Utilization Efficiency rating is the most significant factor. High-efficiency furnaces (95% AFUE and above) cost more upfront but provide substantial savings on your energy bills. A 96% AFUE furnace saves 15-20% compared to an 80% model.
Furnace Size (BTUs)
The size must be matched to your home's square footage and insulation. An oversized or undersized furnace will be inefficient and lead to higher costs. We perform a proper load calculation to determine the exact size your home needs.
Installation Complexity
Converting from an 80% to 96% AFUE furnace requires new PVC exhaust venting. Ductwork modifications or removing old equipment can add time and cost. Most standard installations take one day.
Contractor & Labor
Reputable, licensed, TSSA-certified contractors may have higher labor costs, but they ensure the job is done correctly and safely — crucial for performance and longevity. We provide transparent, itemized quotes.
Furnace Installation Cost Breakdown by Brand & Efficiency
💰 Typical Annual Savings with 96% AFUE Furnace
Upgrading from an 80% to 96% AFUE furnace
Based on average London home heating costs of $1,500-$2,000 annually
Over 15-year lifespan: $3,375 - $6,000 total savings
Maximizing Your Savings: Rebates and Long-Term Efficiency
While the initial cost may seem high, the long-term savings and available rebates make a high-efficiency furnace a sound financial decision.
Government and Utility Rebates in London, ON
London homeowners are often eligible for government programs and utility rebates that can significantly reduce the cost of a new furnace:
- Enbridge Home Efficiency Rebate: Up to $650 for qualifying high-efficiency furnace upgrades (96% AFUE or higher). We handle all paperwork for you.
- Canada Greener Homes Grant: Up to $5,000 for qualifying home energy retrofits, including high-efficiency furnace installation when combined with other upgrades.
- Heritage Home Program: Additional incentives may be available for older London homes.
Energy Savings on Your Utility Bills
A high-efficiency furnace can save you a substantial amount of money on your monthly heating bills. By converting more than 95% of the fuel into heat, these systems waste very little energy. This is especially important during London's cold winters, where heating is a major expense. Many of our customers see payback within 3-5 years through energy savings alone.
Abdullah Ghzail – Owner & Lead TSSA-Certified HVAC Specialist
"After hundreds of furnace installations across London, I can tell you that a high-efficiency furnace is one of the best investments you can make for your home. The upfront cost is higher than a standard model, but between Enbridge rebates and monthly energy savings, most homeowners recoup the difference within 3-5 years. And with a 15-20 year lifespan, that's over a decade of pure savings. Don't wait until your furnace fails in January — plan ahead, get multiple quotes, and make sure your contractor does a proper load calculation. We include that with every free estimate."
What London Homeowners Say About Their New Furnaces
"Our old furnace was 18 years old and costing a fortune. Abdullah installed a 96% AFUE Goodman furnace for $3,400 and handled all the Enbridge rebate paperwork. We got $650 back, so net cost was $2,750. Our heating bills dropped by $60/month the first winter. The installation took one day and they left our basement spotless. Best home investment we've made near Byron."
— Spur B. London ON · December 2025
"I got three quotes for a new furnace in London. Hawana wasn't the cheapest, but Abdullah was the only one who did a proper load calculation instead of guessing. He explained why 60,000 BTUs was perfect for our 1,800 sq ft home near White Oaks. The Lennox 96% furnace runs quietly and our home is perfectly warm. The extra $400 upfront was worth every penny for the quality and expertise."
— Cove T. London ON · November 2025
"We were freezing in our St. Thomas home with a failing furnace. Hawana came the next day, quoted a 96% AFUE Carrier for $4,200, and installed it within a week. They handled the permit, Enbridge rebate, and even showed us how to register for the 10-year parts warranty. Our natural gas bill dropped $75/month compared to last winter. Worth every dollar for the comfort and savings."
— Dune K. St. Thomas ON · October 2025
High-Efficiency Furnace FAQ — 2026
AFUE stands for Annual Fuel Utilization Efficiency. It measures how much of the fuel a furnace consumes is converted into usable heat for your home. A 96% AFUE furnace converts 96% of fuel into heat, wasting only 4%. The minimum standard in Canada is 90%, but high-efficiency furnaces with 95-98% AFUE provide significant long-term savings. For London's cold winters, choose 96% AFUE or higher.
High-efficiency furnace installation in London typically costs $3,400-$5,500 depending on brand, AFUE rating, and installation complexity. A standard 96% AFUE Goodman furnace starts at $3,400 installed. Premium brands like Lennox or Carrier with 96-98% AFUE range from $4,200-$5,500. After Enbridge rebate ($650), net cost can be as low as $2,750. Get a free quote for your specific home.
London homeowners can access up to $650 Enbridge rebate for qualifying high-efficiency furnace upgrades (96% AFUE or higher). The Canada Greener Homes Grant offers up to $5,000 for qualifying home energy retrofits. Additional provincial programs may be available. We handle all rebate paperwork for our customers — you don't need to figure it out alone.
Upgrading from an 80% AFUE furnace to a 96% AFUE furnace can save 15-20% on heating bills. For the average London home spending $1,500-$2,000 annually on heating, that's $225-$400 saved each year. Over a 15-year furnace lifespan, total savings range from $3,375-$6,000 — often exceeding the initial cost difference after rebates.
Furnace size is measured in BTUs (British Thermal Units). A typical London home needs 40,000-100,000 BTUs depending on square footage, insulation, windows, and air sealing. A 1,500-2,000 sq ft home typically needs 60,000-80,000 BTUs. Never guess — we perform a proper load calculation (Manual J) to determine the exact size your home needs for maximum efficiency and comfort.
Most standard furnace installations are completed in one day (6-8 hours). We arrive in the morning, remove your old furnace, install the new unit, connect venting and gas lines, test thoroughly, and clean up before leaving. More complex jobs involving ductwork modifications or converting from 80% to 96% AFUE (which requires new PVC exhaust venting) may take 1.5-2 days.
With proper annual maintenance, a modern high-efficiency furnace lasts 15-20 years. Regular tune-ups keep efficiency high, prevent breakdowns, and maintain warranty validity. Without maintenance, lifespan drops to 10-12 years. Our Basic Maintenance Plan ($149/year) includes annual tune-up, filter change, and priority service to protect your investment.
A 98% AFUE furnace is 2% more efficient than a 96% model. For the average London home spending $1,800/year on heating, that's $36/year in additional savings. The 98% model typically costs $500-$1,000 more upfront. Payback period is 14-28 years — longer than the furnace's lifespan. For most homeowners, 96% AFUE offers the best value. However, 98% models often include advanced features like variable-speed blowers.
Yes. Furnace replacement and new installation require a permit from the City of London. A professional TSSA-certified contractor handles all permitting and inspections for you. Never hire a contractor who suggests skipping permits — it's illegal, unsafe, and can cause issues when selling your home. We manage all permits and schedule inspections so you don't have to worry.
Replace your furnace if it's over 15 years old, requires repairs costing 50%+ of a new unit's price, has a cracked heat exchanger, or needs frequent repairs. If your furnace is under 10 years old and repair costs are reasonable, repair may be better. A new 96% AFUE furnace can cut heating bills by 20-40% compared to an old 80% model — often paying for itself within 3-5 years.
Ready for a New High-Efficiency Furnace?
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