Furnace Cost to Replace in Oregon: A Complete Guide

If you’re considering replacing your furnace in Oregon, you’re likely wondering, “What is the furnace cost to replace in my area?”

Replacing your furnace is a significant investment for homeowners in Oregon, and the cost can vary widely depending on a range of factors. This guide is designed to give you a foundational understanding of what to expect, helping you budget effectively and explore the best options for your home.

At Advantage Heating, we’ve been helping Oregon homeowners find the right heating solutions for over 32 years. Whether you’re replacing an old, failing furnace or upgrading to a more energy-efficient model, we’re here to make the process simple and stress-free.

Please keep in mind that the prices mentioned are general estimates and may vary based on market conditions, equipment availability, and the specific needs of your installation. Use this guide as a starting point to ensure you’re making an informed decision and getting the best value for your money

What Is the Average Furnace Cost to Replace in Oregon?

The cost to replace a furnace in Oregon can vary widely depending on several factors. On average, homeowners in Oregon spend between $3,000 and $7,500 for a furnace replacement, as of 2024.

However, the price could be higher or lower based on the type of furnace, its efficiency rating, and installation requirements.

Key Factors Affecting Furnace Replacement Costs in Oregon

Several elements influence the total cost of a furnace replacement in Oregon:

1. Type of Furnace

• Gas Furnace: Gas furnaces are popular for their efficiency and lower operating costs. For a 2,000-square-foot home in Oregon, the cost of a gas furnace typically ranges from $4,000 to $8,000. The exact cost depends on the furnace’s efficiency and heating capacity requirements.
• Electric Furnace: Generally ranges from $2,000 to $7,000. Electric models tend to be less expensive upfront but often have higher monthly energy bills.
• Oil Furnace: Prices range from $4,500 to $8,000. These are less common but are an option in areas without access to natural gas. However, oil furnaces do have a higher risk of fire hazards compared to other options.
• Heat Pumps: While not technically furnaces, heat pumps provide both heating and cooling and range from $4,000 to $10,000. Oregon’s mild winters make heat pumps a great option to stay warm. According to PGE, you can save up to 60% on monthly energy bills when you switch from an electric furnace. Check how much you can save with a heat pump for free today.

2. Efficiency Rating

Furnaces with higher Annual Fuel Utilization Efficiency (AFUE) ratings cost more upfront but can save you money in the long run by reducing energy bills. For example:

• Standard-efficiency furnaces (80-85% AFUE) are more affordable.
• High-efficiency furnaces (90%+ AFUE) are more expensive but qualify for energy rebates and tax credits.

Advantage Tips on Energy Rebates for High-Efficiency Furnaces

Here are some rebate options available in Oregon:

1. Energy Trust of Oregon: Offers cash incentives for qualifying high-efficiency natural gas furnaces. Income-qualified households can receive up to $1,600 for installing a high-efficiency natural gas furnace.
2. Northwest Natural Rebates: Rebates are often available for upgrading to a high-efficiency natural gas furnace when installed by an NW Natural Preferred Contractor, like Advantage. Check if programs are available now.
3. **Oregon Department of Energy Rebates (2025-2026):**
   • The Home Efficiency Rebate Program (HOMES) will provide rebates covering 50-100% of project costs, up to $10,000 for energy-efficient upgrades.
   • The Home Electrification and Appliance Rebate Program (HEAR) will offer rebates covering 50-100% of project costs, up to $14,000 for low- and moderate-income households.

To maximize your savings, contact Energy Trust of Oregon or your local utility provider for up-to-date incentives and eligibility requirements. Alternatively, work with knowledgeable, local HVAC providers who can help you claim available rebates and tax credits.

90% of people qualify for at least some of these programs — check what you qualify for today for free.

3. Size of the Furnace

The size of your furnace is crucial because it determines how effectively it can heat your home. Furnaces are measured in BTUs (British Thermal Units), which represent the amount of heat the furnace can produce per hour.

Proper sizing is essential to avoid wasting money. A furnace that’s too small will struggle to heat your home adequately, while an oversized furnace will cycle on and off too frequently, leading to inefficiency, increased energy bills, and unnecessary wear and tear.

While the size of your home is typically the biggest factor in determining the size of your furnace, other important factors can also influence the required BTUs, such as:

• Climate Zone: Oregon’s milder coastal regions may need less heating, while colder areas require higher BTU furnaces.
• Insulation Quality: Well-insulated homes need smaller furnaces, while poorly insulated homes lose heat faster and require more heating power.
• Ceiling Height: High or vaulted ceilings demand more heat to fill the extra vertical space.
• Home Layout: Open-concept homes heat more easily, while multi-story or segmented homes may require zoning or larger furnaces.
• Ductwork Efficiency: Leaky or inefficient ductwork can result in heat loss, requiring a more powerful furnace.

Sizing a furnace isn’t something you have to figure out on your own. Skip the guesswork with a free HVAC consultation from Advantage. We’ll provide 3–6 tailored options based on your home, needs, and budget, ensuring you get the right size furnace to maximize efficiency and comfort.

4. Installation Complexity

Installation costs depend on factors like ductwork modifications, venting requirements, and accessibility. Homes with older or damaged ductwork may need additional repairs or replacements, increasing costs.

For homeowners considering switching systems — for example, converting from an oil furnace to a gas furnace or an electric furnace to a heat pump — expect additional costs. These conversions may involve upgrading ductwork, installing new gas lines, or making electrical adjustments.

Overwhelmed by all the options? Get a free consultation to find 3-6 best options for your needs & ideal price.

5. Brand and Warranty

Premium brands like Daikin often come with higher price tags but offer better reliability and warranties. For example, Daikin’s systems include a Comfort Pro Promise, which is a 1-year labor and parts warranty — meaning if anything goes wrong and you’re not satisfied, you can get it serviced for free.

Always consider the manufacturer’s warranty when choosing a furnace.

Did you know that most manufacturers require regular maintenance for you to keep your warranty? Enjoy year-round comfort, safety, and peace of mind for just $18/mo. Advantage takes care of everything — so you never have to worry about missing seasonal maintenance again.

Join today.

Signs It’s Time to Replace Your Furnace in Oregon

Not sure if it’s time to replace your furnace? Here are some common warning signs that indicate it might be time for an upgrade:

• Your furnace is over 15–20 years old: Older furnaces become less efficient and are more prone to breakdowns.
• Frequent breakdowns and costly repairs: If repair bills are piling up, replacing your furnace could save you more money in the long run.
• Uneven heating or inability to maintain a comfortable temperature: Hot and cold spots in your home often indicate your furnace is struggling to distribute heat properly.
• Rising energy bills despite consistent usage: An inefficient furnace consumes more energy to do the same job, driving up your bills.

If you’re experiencing any of these signs, continuing to repair your furnace may not be the most cost-effective solution. A newer, high-efficiency furnace can save you money on energy bills, improve your home’s comfort, and provide peace of mind.

Don’t wait until your furnace completely fails during a cold Oregon winter. Check your replacement options today for free.

What time of year is the cheapest to replace a furnace?

The off-season — spring and fall — is typically the best time to replace a furnace. Because it’s less busy, HVAC companies in Oregon often offer discounts during these periods. You can also get service and installation without long wait times compared to the peak winter season.

How to Save on Furnace Replacement Costs in Oregon

Replacing a furnace doesn’t have to break the bank. Here are some ways to save:

• Take Advantage of Seasonal Discounts: HVAC companies in Oregon often offer promotions during the off-season.
• Flexible Payment Plans: Look for HVAC companies that provide payment plans to avoid paying a large upfront cost.
• Rebates and Tax Credits: Check for local, state, or federal programs that reward energy-efficient upgrades.
• Bundle Services: If you’re replacing your air conditioner as well, bundling the two services can save money.

Get a Free Quote for Furnace Replacement Costs in Oregon

Replacing your furnace in Oregon doesn’t have to be stressful. Let us simplify the process for you. Schedule a free in-home visit and receive 3–6 tailored options based on your home, needs, and budget — all with a free, no-obligation quote.

We’ll also guide you through rebates, tax credits, and discounts you may qualify for, ensuring you maximize your savings. Don’t wait to make your home safer, more comfortable, and more energy-efficient. Schedule your free visit today!

About Advantage Heating, A/C, & Electrical

Since 1992, our father-son business has proudly served families and neighborhoods across the Mid-Valley with unmatched expertise & care. Learn more about Advantage.