As the Bay Area’s weather starts cooling down, homeowners often wonder: How much does it cost to install a new furnace? At Galaxy Heating & Air Conditioning, we install premium systems from American Standard, Carrier, and Lennox, providing reliable warmth, energy efficiency, and compliance with California’s Low NOx requirements.
Below, we break down what affects furnace installation pricing, local code factors, and what to expect if you’re replacing or upgrading your system.
Average Furnace Installation Cost in the Bay Area
In the San Francisco Bay Area, a typical furnace installation costs between $6,000 and $10,000, depending on the brand, size, efficiency, and complexity of the job.
| Furnace Type | Typical Price Range (Installed) |
| 80% AFUE Standard Efficiency | $6,000 – $7,000 |
| 95%+ High Efficiency | $7,000 – $9,000 |
| Variable-Speed / Modulating Systems | $9,000 – $12,000+ |
Note: Homes with difficult attic or crawl-space installations, new ductwork, or major gas/electrical upgrades can push the total higher.
What Affects Furnace Installation Cost?
1. Furnace Brand and Model
At Galaxy, we specialize in top-tier systems designed for California homes:
- American Standard: Known for quiet operation, high efficiency, and durable build quality. The Silver and Gold series are most popular among Bay Area homeowners.
- Carrier: Reliable and efficient, especially in the Performance and Infinity lines, which feature variable-speed motors and smart control compatibility.
- Lennox: Offers some of the most efficient furnaces on the market, like the EL296V and SL280V, ideal for homeowners prioritizing energy savings.
Each brand offers multiple efficiency levels and warranty options. Higher-end furnaces typically cost more upfront but deliver lower energy bills and better comfort.
2. Low NOx vs. Ultra-Low NOx Furnaces
California’s strict air-quality standards require Low NOx (Nitrogen Oxide) furnaces to reduce emissions.
Some regions, including the Bay Area, also allow Ultra-Low NOx models, but Galaxy Heating & Air Conditioning generally does not recommend them unless required by local code.
Why?
- Ultra-Low NOx furnaces use extra sensors and complex combustion systems to reduce emissions further, but this also makes them more sensitive and prone to frequent breakdowns.
- Low NOx furnaces, on the other hand, still meet Bay Area compliance standards while offering better reliability and easier maintenance.
Our technicians can verify which model type your city or county requires and help you select a system that balances performance, reliability, and compliance.
3. System Efficiency (AFUE Rating)
A furnace’s AFUE (Annual Fuel Utilization Efficiency) measures how much of your fuel turns into usable heat:
- 80% AFUE: Standard efficiency, good for mild climates or lower budgets.
- 90–95% AFUE: High efficiency, with sealed combustion and PVC venting for better performance.
- 96–98% AFUE: Premium, variable-speed units ideal for comfort and energy savings.
While higher efficiency systems cost more initially, they often pay for themselves through reduced energy usage, especially in larger homes or colder inland areas.
4. Ductwork and Venting
If your existing ductwork is old, undersized, or leaky, it may need sealing or replacement. Proper duct design is essential for comfort and efficiency.
Re-venting, ductwork replacement or upgrade can also add $1,500–$5,000 depending on layout.
5. Code Upgrades and Compliance
Modern furnace installations in the Bay Area often require additional code-related upgrades to meet California Title 24 and local building standards. These may include:
- Dedicated electrical outlet for the furnace
- Gas line upgrades such as a properly installed sediment trap
- Condensate drain line improvements, including installation of an SS2 safety switch
- Double-wall flue pipe or venting updates for safety and efficiency
- Permits and inspections per California Title 24 standards
At Galaxy Heating & Air Conditioning, our installations include all required permits, pressure testing, and safety inspections, ensuring full compliance. We handle all required code upgrades as part of your installation. Our technicians ensure every system passes inspection and meets or exceeds current California and local jurisdiction requirements for safety and performance.
Why Choose Galaxy Heating & Air Conditioning?
- Authorized dealer for American Standard, Carrier, and Lennox
- 10-year parts and labor warranty available on most systems
- Free in-home estimates and transparent pricing
- Code-compliant Low NOx installations for every Bay Area city
- Experienced local team serving Contra Costa County, Alameda County, San Francisco and San Mateo County.
Final Thoughts
The total cost to install a new furnace in your Bay Area home typically ranges from $6,000 to $10,000, depending on the system type, efficiency, and installation complexity.
Galaxy Heating & Air Conditioning will help you choose a furnace that fits your home, budget, and local code, without unnecessary upsells or unreliable equipment.
Ready to get started?
Contact Galaxy Heating & Air Conditioning today at (925) 578-3293 or schedule your free estimate online.
Stay warm, efficient, and compliant this winter with a system you can count on.