How Much Does a New Furnace Cost in Raleigh? [2025 Data]

New furnace costs in Raleigh, North Carolina, average $4,913, and most homeowners pay between $3,043 and $6,917. Your total will depend mostly on the size of your home and the fuel type you plan on using, but furnace efficiency can also play a role. Be sure to consider local incentives for furnace replacement—several gas companies in the city offer rebates.

New Furnace Cost Factors

Installing a new furnace in Raleigh costs between $3,043 and $6,917 for most residents, but prices can climb as high as $9,000. There’s such a wide range because there are a few factors that make a big difference in your total.

Home Size

HVAC pros in Raleigh will size your furnace based on your home’s square footage. Bigger homes have more space to heat and require more powerful furnaces that cost more in materials.

Furnaces are sized in British Thermal Units (BTUs), and in Raleigh’s somewhat moderate climate, homeowners need 45 to 50 BTUs per square foot of living space. The average home in Raleigh is just under 1,900 square feet, which needs a furnace that can put out between 85,500 and 95,000 BTUs.

You can use the table below to get an idea of where your material cost will fall based on home size, but it’s important that you have a pro size your system. They’ll take other crucial things into consideration, including ceiling height, home age, insulation quality, sun exposure, and more. Keep in mind that you’ll also need to pay for labor, which is not included in the costs below.

Fuel Source

Most furnaces in Raleigh are gas furnaces, which cost close to twice as much as electric furnaces to install due to the higher cost of the equipment and the added labor to connect the new furnace to your gas line. 

Electric furnaces are the most affordable type of furnace up front, although they cost the most to run. Oil-fired and propane furnaces aren’t common in Raleigh, but they’re the most expensive options.

Furnace Efficiency

The efficiency of the furnace you choose will also significantly affect your total cost. You’ll pay more up front for a high-efficiency furnace, although higher efficiency ratings bring down fuel costs and can save you money over time. In areas with a moderate climate like Raleigh, the Department of Energy notes that splurging on the highest-efficiency furnace can be hard to justify financially because long-term savings are lower than the up-front costs to upgrade.

However, you should consider that there are rebates and tax credits available for high-efficiency furnaces in Raleigh. The federal investment tax credit can effectively save you up to 30% on your total if you aim for the highest-efficiency furnaces available. Several gas companies in Raleigh also have rebate programs available for new gas furnaces, including Enbridge (formerly Dominion Energy), which offers a rebate of up to $400.

Furnace efficiency is rated using the annual fuel utilization efficiency (AFUE) rating, with higher ratings meaning lower running costs for equal performance.

Old Furnace Removal

Many HVAC professionals include the cost of removing your old furnace in their estimate, so you could see between $60 and $300 added to the total for this service. Double-check with your pro if it’s included or ask if they’ll handle the removal and haul-away for an additional charge.

You may see additional charges if you’re converting to a different fuel type. Switching from gas to electric is common in Raleigh, and capping the old gas line will add between $125 and $250 to your total.

HVAC Pro Costs

When you hire an HVAC pro in Raleigh, North Carolina, you can expect the labor alone to cost between $1,000 and $3,000. On an hourly basis, labor costs in Raleigh are close to 9% higher than you’d pay in most other cities, thanks to the above-average cost of living in the area bringing up labor costs. While the labor can get expensive, it’s illegal to carry out your own furnace replacement, so hiring a pro is your only option. Even if it wasn’t, a professional will ensure your furnace is safe and sized properly, so the labor is worth the investment.

Your HVAC pro will also charge you separately for the permits required to replace your furnace. The City of Raleigh charges a flat fee of $123 for permits for mechanicals, plus a $5 technology fee, so your total fee will be $128. You’ll be responsible for paying the permit fee, but your HVAC pro should handle all of the paperwork and scheduling the necessary inspections.

Does a New Furnace Increase Home Value?

Replacing your furnace will increase your home value. You can expect an average return on investment of 30% when installing a new furnace, which means an average value bump of just under $1,500 in Raleigh.

You can secure the highest ROI by choosing a system that will maximize long-term savings for future buyers. Gas furnaces are the most popular in Raleigh and have some of the lowest running costs, so gas is often the best way to boost your returns. However, North Carolina is also one of the most solar-friendly states in the country, so if you have solar installed, you could reduce furnace running costs and maximize ROI by installing an electric furnace that can run at little or no cost just off of solar energy.

How Angi Gets Its Cost Data

Home is the most important place on earth, which is why Angi has helped more than 150 million homeowners transform their houses into homes they adore. To help homeowners with their next project, Angi provides readers with the most accurate cost data and upholds strict editorial standards. We survey real Angi customers about their project costs to develop the pricing data you see, so you can make the best decisions for you and your home. We pair this data with research from reputable sources, including the U.S. Bureau of Labor Statistics, academic journals, market studies, and interviews with industry experts—all to ensure our prices reflect real-world projects. 

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