Permit and rebate forms
New furnace installation in Minneapolis
A furnace should be sized to your house, not copied off the old nameplate. We run a load calculation, set a 95 percent or higher condensing furnace with new PVC venting, pull the Minneapolis permit, and file the rebate forms before we go.
- 24/7 calls answered
- Minneapolis service office
- 95%+ AFUE condensing furnaces
- Permit pulled and inspected
Quick answer
A furnace replacement in Minneapolis typically runs $3,800 to $9,500 installed, with most two-stage 95 to 96 percent AFUE furnaces landing between $5,000 and $7,500. The job includes a load calculation, PVC venting, a flat $216.60 city permit, and Xcel or CenterPoint rebate forms on qualifying units.
Heating
What a furnace replacement actually involves here
Most furnaces we replace in Minneapolis are 18 to 25 years old, many of them 80 percent units that vent into the chimney. Minnesota code steers most of those replacements to 95 percent and higher condensing furnaces, which means new PVC intake and exhaust pipes through a side wall, a condensate drain, and sometimes a chimney liner for the water heater left behind.
Before we recommend anything, we measure the house. Square footage, insulation, windows and duct size all feed a load calculation. An oversized furnace short cycles, runs loud and wears out early; an undersized one runs all night in January. Getting that number right is worth more than any brand choice.
Compare
Choosing the right furnace tier
| Tier | How it runs | Suits |
|---|---|---|
| Single-stage 95% | Full output every cycle | Smaller homes on a tighter budget |
| Two-stage 96% | Low fire most of the season | Most Minneapolis homes |
| Modulating 97%+ | Output matched to the load | Larger homes, zoned systems, heat pump pairing |
| 80% AFUE | Chimney vented | Rarely allowed as a replacement under current code |
Cost factors
What moves the price
The ranges above are planning figures; your number comes after we measure.
- Efficiency and staging. Single-stage, two-stage and modulating furnaces sit in different price tiers.
- Venting conversion. Moving from an 80 percent chimney-vented unit to PVC adds about $400 to $800 in pipe and labor.
- Furnace size. Larger BTU output and larger cabinets cost more; the load calculation sets this.
- Duct and return changes. Undersized returns or a new plenum add sheet metal work.
- Water heater venting. A chimney liner or power-vent water heater may be needed once the furnace leaves the chimney.
- Permit. The City of Minneapolis charges a flat $216.60 for a furnace replacement permit.
- Rebates. Xcel Energy and CenterPoint rebates of about $200 to $400 apply to qualifying 95 percent and higher furnaces.
Two-stage and variable-speed furnaces
A single-stage furnace runs full blast every time it fires. A two-stage furnace runs at a lower output most of the winter and only goes to high fire on the coldest days, which means longer, quieter cycles and more even temperatures between floors. A variable-speed blower adds finer airflow control and pairs well with a whole-home humidifier or a heat pump. For most Minneapolis homes a two-stage condensing furnace with a variable-speed blower is the sweet spot between comfort and cost; we will say so plainly when a simpler single-stage unit makes more sense.
80% to 96% AFUE venting change
An 80 percent furnace sends hot exhaust up the chimney. A 96 percent furnace extracts so much heat that its exhaust is cool and wet, so it vents through PVC pipe instead, usually out a side wall, with a second pipe bringing combustion air in. That change adds pipe, wall penetrations and a condensate drain to the job, and it can leave the water heater alone in a chimney too large for it. We plan the vent route away from windows, doors and snow lines and check the water heater draft before we leave.
Furnace and AC combined replacement
If the air conditioner is the same age as the furnace, replacing both together is often cheaper than two separate visits, because the indoor coil sits on top of the furnace and has to be matched to the outdoor unit anyway. Minneapolis homeowners typically spend $5,240 to $13,100 for a combined furnace and AC replacement, averaging about $7,860. We price the furnace alone and the pair together so you can compare, and we are straight about it when the AC has years left.
How Minneapolis homes shape this job
Minneapolis sits in Climate Zone 6A, where a 2,000 square foot house often needs a furnace near 100,000 BTU, but plenty of the older homes we measure have been insulated and re-windowed since the original furnace went in, and the load has dropped. The city charges a flat $216.60 permit on a furnace change-out and inspects the job, so we pull it before work starts and meet the inspector afterward.
Step by step
How a furnace replacement runs
- 1
Measure and calculate the load
We size the furnace from the house, check the ducts, and look at venting and the water heater.
- 2
Written options
You get a written price on the recommended furnace and at least one alternative.
- 3
Permit and removal
We pull the permit, shut down and remove the old furnace, and protect the floors.
- 4
Install, vent and wire
New furnace, PVC venting, condensate drain, gas connection and thermostat.
- 5
Start up, inspect, file rebates
Combustion and airflow checked, city inspection scheduled, rebate forms filed.
Brands we service and install
The furnaces we repair and replace most are Carrier, Lennox, Trane, Bryant and Goodman, with Amana and Rheem close behind.
Timing
How long you are without heat
A straightforward furnace swap takes about four to six hours. Converting from an 80 percent chimney-vented unit to a condensing furnace with PVC venting adds another one to three hours. Most replacements are finished the same day, so the house is warm again by evening, and in a cold snap we bring temporary electric heaters if the job runs long.
Questions we get on the phone
Furnace installation questions from Minneapolis homeowners
Age over 15 to 20 years, a cracked heat exchanger, repeated repairs in one season, or repair quotes approaching a third of replacement cost are the usual signs. We show you the reading or the crack before recommending replacement.
In most Minnesota replacements the code steers you to a 95 percent or higher condensing furnace.
It comes from a load calculation, not the old nameplate. Many insulated older homes need less capacity now.
Usually one day, including a change to PVC venting.
The federal 25C credit expired at the end of 2025. Utility rebates from Xcel Energy and CenterPoint still apply to qualifying high-efficiency furnaces, and we file the forms.
More from this category
Related work we handle
From our guides: What a furnace replacement costs in Minneapolis.
Plan your furnace replacement
Call and we will measure the house, run the load, and give you a written price with the permit and rebate paperwork included.