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AFUE Ratings Guide

If you’re considering an upgrade to your furnace, an early choice in the process is to determine an efficiency rating. This will influence your up-front costs and what you pay for home heating in the future. This guide is intended to inform you about AFUE ratings and how they affect you.

What Is an AFUE Rating?

AFUE is short for Annual Fuel Utilization Efficiency. It is a standard for measuring how efficiently a furnace or boiler changes fuel into heat for your home within a year. The higher the AFUE rating (on a scale of 0% to 100%), the more efficient the system is at converting fuel into usable heat.

How Is AFUE Measured?

AFUE ratings are estimated by calculating the ratio of a furnace’s heat output to the fuel it consumes in the process. This calculation factors in the energy lost through exhaust gases, radiation and other elements that diminish efficiency. The result is expressed as a percentage, representing the amount of fuel converted into heat.

Figuring out a heating system’s AFUE rating involves conducting a conventional test cycle to quantify the heat output and fuel consumption. This test cycle is designed to simulate ordinary heating conditions throughout the year, including both on and off periods. The heating system operates at full capacity for a prolonged period to define its peak performance.

What Is the Minimum AFUE Rating in 2023?

The U.S. Department of Energy (DOE) has steadily increased HVAC efficiency ratings over the past several decades in an attempt to improve energy efficiency and reduce emissions that harm the ozone/atmosphere. In 2023, the minimum rating for new gas furnaces was set 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 cut down energy consumption, lowers power bills and reduces the environmental impact of heating your home.

Why Do Gas Furnaces Jump from 80 to 90 AFUE?

When searching for new furnaces, you may discover many models around 80 and 90 AFUE, but not much in between. This is due to the technology necessary to exceed 80 AFUE triggers a substantial rise in performance.

The 80 AFUE threshold has been the minimum expectation for gas furnaces in the U.S. since the 1990s. At this level, furnaces convert 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 secure higher AFUE ratings, such as two-stage or modulating gas valves, variable-speed blowers and supplementary heat exchangers. These technologies help the furnace grab heat from the fuel supply more effectively, improving efficiency from 80 to 90 AFUE or higher. Today’s top-rated furnaces cap out at approximately 98.5 AFUE.

How Do AFUE Ratings Determine Furnace Prices?

The total price of a furnace with a higher AFUE rating is usually more than that of a lower AFUE-rated furnace. In the end, more sophisticated technologies come with a higher price tag. The exact cost difference is based on the furnace brand, size and efficiency rating.

When thinking about the up-front cost of a more efficient furnace, remember the future energy savings that awaits you. The potential to save money on utility bills for the next decade or longer will allow you to recoup the additional up-front investment.

Is It Smart to Buy a Furnace with the Highest AFUE Rating Possible?

Although a higher AFUE rating leads to more effective home heating and more affordable energy bills, we are not saying every homeowner should pick a 95 AFUE furnace. Here are the factors to take into account when reviewing costs and efficiency ratings:

  • Local weather: The colder the temperatures, the longer your high-efficiency furnace operates, and thus, provides an earlier ROI. Because of this, higher AFUE ratings are most suitable in cold climates that require more heating than cooling to keep a comfy indoor temperature.
  • How long will you live there?: If you imagine living in your home for a long time, choosing a high-efficiency furnace may be a smart investment since it will pay for itself over the coming years in energy savings. However, if relocating is in your plans within the next couple of years, the extra cost of a higher AFUE-rated furnace may not be worth it.
  • The cost of fuel: The impact of an efficient furnace is more pronounced when energy costs are higher. You’ll see the savings in your bottom line as your furnace converts a higher percentage of fuel into usable heat for your home.

Get a New Furnace Today

When trying to find the best furnace system for your needs and budget, select Service Experts Heating, Air Conditioning & Plumbing. We can help you sort out the initial costs and long-term benefits of different AFUE ratings to steer your decision. We are so certain that you’ll love working with Service Experts that we offer a 100% satisfaction guarantee! To find out more or to schedule a no-cost furnace installation estimate, please contact a Service Experts office near you.

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