If you’re realizing that it’s time to upgrade your furnace, one of the first steps is to decide on an efficiency rating. This will impact your up-front costs and what you pay for home heating in the future. Use this guide to learn more about AFUE ratings and how they affect you.
AFUE stands for Annual Fuel Utilization Efficiency. It is a measure of how efficiently a furnace or boiler changes fuel into heat for your home within a 12-month period. The higher the AFUE rating (on a scale of 0% to 100%), the more efficient the system is at converting fuel into usable heat.
AFUE ratings are measured by calculating the ratio of a furnace’s heat output to the amount of fuel it consumes in the process. This calculation accounts for the energy lost through exhaust gases, radiation and other elements that reduce efficiency. The result is expressed as a percentage, representing the proportion of fuel converted into heat.
Determining a heating system’s AFUE rating includes conducting a standard test cycle to measure the heat output and fuel consumption. This test cycle is designed to simulate normal heating conditions throughout the year, including both on and off periods. The heating system is then run at maximum capacity for a prolonged period to define its peak performance.
The U.S. Department of Energy (DOE) has gradually increased HVAC efficiency ratings over the past few decades in an effort to promote energy efficiency and reduce carbon monoxide from the atmosphere. In 2023, the minimum rating for new gas furnaces changed to 81 AFUE. From 2015 to 2022, the South and Southwest regions had a minimum rating of 80 AFUE, and the North required furnaces to be rated 90 AFUE or higher. Better AFUE ratings reduce energy consumption, lowers energy bills and reduces the environmental impact of heating your home.
When shopping for new furnaces, you may find many models around 80 and 90 AFUE, and not a whole lot else to consider. This is because the technology required to exceed 80 AFUE causes a substantial jump in performance.
The 80 AFUE threshold has been the minimum requirement for gas furnaces in the U.S. since the 1990s. At this level, furnaces transform 80% of the fuel they consume into heat, with the remaining 20% lost to the atmosphere through the flue.
Gas furnaces must incorporate more advanced technology to attain higher AFUE ratings, such as two-stage or modulating gas valves, variable-speed blowers and secondary heat exchangers. These technologies help the furnace pull heat from the fuel source more effectively, boosting efficiency from 80 to 90 AFUE or higher. Today’s best furnaces cap out at around 98.5 AFUE.
The cost of a furnace with a higher AFUE rating is typically higher than that of a lower AFUE-rated furnace. After all, more advanced technologies come at a higher price. The exact cost difference depends on the furnace brand, size and efficiency rating.
When thinking about the initial cost of a more efficient furnace, remember the long-term energy savings that awaits you. The potential to save money on energy bills for the next decade or longer helps you to recoup the extra up-front investment.
While a higher AFUE rating results in better home heating and lower energy bills, this doesn’t necessarily mean everyone should buy a 95 AFUE furnace. Here are the factors to take into account when comparing costs and efficiency ratings:
For help determining the perfect heating system for your needs and budget, turn to Levy & Son Service Experts. We can help you weigh the up-front costs and long-term benefits of different AFUE ratings to steer your decision. We’re so confident you’ll be satisfied with our services that we offer a 100% satisfaction guarantee! For more information or to schedule a no-cost furnace installation estimate, please contact a Service Experts office near you.
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