What is The Cost To Install a New Furnace in 2025? Everything BC Homeowners Need to Know

If you live in Vancouver, you know how crucial a reliable heating system is during the colder months. When your furnace is no longer keeping up or has reached the end of its lifespan, it’s time to explore your options for a new installation. However, understanding the cost to install a furnace in Vancouver requires considering local factors, including the climate, housing types, and unique cost structures in the region.

In this guide, we’ll dive into the details of furnace installation costs, highlight Vancouver-specific considerations, and provide tips for making the most of your investment.

Before you read! Try our Furnace Installation Cost Calculator to get a price estimate for your home in seconds:

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1. What Is the Average Cost to Install a Furnace in Vancouver?

In Vancouver, the cost to install a new furnace typically falls between $3,000 and $8,500, depending on the type of furnace, efficiency rating, and the complexity of the installation. Here’s a breakdown of what you can expect:

• Basic Furnaces: Standard-efficiency furnaces with an 80% AFUE rating start at around $3,000 to $4,000, including installation.
• High-Efficiency Furnaces: These systems, with AFUE ratings of 90% or higher, can cost between $4,500 and $7,500. They are a popular choice in Vancouver, where energy efficiency is valued for both cost savings and environmental considerations.
• Advanced Systems: Furnaces with smart features, variable-speed blowers, and other premium options can exceed $8,500, especially if additional work, like duct modifications, is required.

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2. Factors Affecting Furnace Installation Costs in BC

While many factors influencing furnace installation costs are universal, several considerations are specific to the Vancouver market.

Climate Considerations

Vancouver’s mild winters compared to the rest of Canada may allow some homeowners to opt for lower-capacity furnaces. However, damp, rainy conditions make consistent heating critical for maintaining comfort and preventing moisture-related issues, which might lead to choosing higher-quality or more efficient systems.

Home Size and Layout

Housing in Vancouver varies significantly, from compact apartments in the city center to larger family homes in surrounding areas. Smaller spaces may require less heating capacity, potentially lowering costs, while larger or older homes may need ductwork upgrades or higher-capacity systems, increasing expenses.

Ductwork Modifications

Many older Vancouver homes may have aging ductwork that leaks or isn’t compatible with modern, high-efficiency furnaces. Repairing or replacing ductwork can add between $1,000 and $3,000 to the cost of a new furnace installed. In some cases, a ductless mini-split system might be a better alternative for homes without existing ducts.

Energy Efficiency Rebates in BC

In British Columbia, homeowners can take advantage of several rebate programs to offset the cost of a new furnace and installation. For example, the CleanBC program offers rebates for installing high-efficiency natural gas furnaces or switching to electric heat pumps. These incentives can reduce upfront costs by $1,000 or more, depending on the system’s efficiency rating.

Permit and Inspection Fees

Vancouver homeowners are required to obtain permits for HVAC installations to ensure compliance with local building codes. Permit fees in Vancouver typically range from $100 to $250 and are often included in the contractor’s estimate.

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3. Cost to Install Furnace and AC Together

Many Vancouver homeowners choose to install a furnace and air conditioner together to create an integrated HVAC system. The cost to install a furnace and AC together typically ranges from $5,500 to $12,000, depending on the size and efficiency of the units.

Vancouver’s relatively moderate summers mean that a high-end air conditioner may not be necessary, allowing homeowners to save on costs. However, combining installations can save labor expenses and ensure both systems are compatible.

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4. How to Save on Furnace Installation Costs in Vancouver

Take Advantage of Seasonal Promotions

HVAC contractors in Vancouver often offer discounts during the shoulder seasons (spring and fall) when demand is lower. Scheduling your installation during these periods can result in significant savings.

Utilize Local Rebates

In addition to CleanBC rebates, FortisBC also offers incentives for upgrading to energy-efficient natural gas furnaces. Pairing these programs can significantly reduce the cost to install a furnace.

A current Rebate in 2025 is the FortisBC duel fuel rebate

A dual fuel heating system combines a high-efficiency gas furnace with an electric heat pump. This setup is designed to offer reliable heating during colder months using natural gas while benefiting from the energy efficiency of an electric heat pump in milder weather. It also provides air conditioning during summer, making it a versatile year-round solution.

FortisBC Dual Fuel Rebate:

FortisBC offers a rebate of up to $10,000 for homeowners who install an eligible dual fuel system, making it an excellent option for upgrading to a more efficient and environmentally friendly heating system.

• Eligibility Requirements:
  • The gas furnace must operate at 95% efficiency or higher.
  • The heat pump must meet specific efficiency standards, such as SEER ≥ 16 and HSPF ≥ 10.
  • Installation must be completed by a licensed contractor who is part of the Home Performance Contractor Network.
• Additional Rebates:
  • Northern Top-Up: Homes located north of 100 Mile House may qualify for an additional $3,000 rebate.
  • Two-Upgrade Bonus: Install a dual fuel system alongside another eligible energy upgrade to earn an extra $300 rebate.
  • Connected Thermostat Rebate: Receive $150 for installing a qualifying smart thermostat.
• How to Apply:
  • Purchase and install an eligible dual fuel system.
  • Submit the required application within six months of installation, including your FortisBC account number, invoices, and other documentation.

By taking advantage of these rebates, homeowners can significantly reduce the cost to install a furnace and heat pump system while upgrading to a high-efficiency solution that lowers energy consumption and greenhouse gas emissions.

Choose the Right Furnace for Your Home

Avoid overspending on a furnace that’s too large for your home. A licensed HVAC professional will perform a load calculation to determine the right size system for your needs, ensuring both efficiency and cost savings.

Work with Local Experts

Hiring a contractor familiar with Vancouver’s building codes and unique climate conditions ensures a smooth installation process. Experienced professionals can help you navigate permits, rebates, and system options to minimize costs.

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5. Additional Costs to Consider

Beyond the furnace and labor, several additional costs can impact your budget:

• Smart Thermostat Installation: Modern high-efficiency furnaces are best paired with smart thermostats to maximize energy savings. Expect to pay $200 to $500 for a thermostat and installation.
• Zoning Systems: Homes with multiple levels or varying heating needs may benefit from zoning systems, which can cost $1,500 to $3,000.
• Gas Line Upgrades: If your current gas line isn’t sufficient for a new furnace, upgrades could add $500 to $1,500.
• Old Furnace Removal: Removing and disposing of your old furnace is typically included in the installation cost, but always confirm with your contractor to avoid surprise fees

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6. Why Invest in a High-Quality Furnace?

While it may be tempting to choose the least expensive option, investing in a high-quality, energy-efficient furnace pays off in the long run. High-efficiency systems reduce energy consumption, lower utility bills, and qualify for rebates. Additionally, reliable systems require fewer repairs and last longer, providing better value over time.

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7. Conclusion

The cost to install a new furnace in Vancouver depends on a variety of factors, including the type of furnace, the size of your home, and the complexity of the installation. While prices can vary, understanding the specific needs of your home and leveraging local rebate programs can help you make a smart, cost-effective choice.

Partnering with a trusted Vancouver-based HVAC contractor ensures that your new furnace is installed efficiently and complies with local regulations. Whether you’re upgrading to a high-efficiency model or replacing an outdated system, a well-chosen furnace is an investment in your home’s comfort and energy savings for years to come.

For personalized advice and accurate quotes, consult a local HVAC professional who understands Vancouver’s unique climate and housing landscape.

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