Installing a central heating system can make home heating much more convenient and comfortable. However, it also represents a major investment that can cost anywhere from $3,000 to $15,000 depending on the type of system and size of your home. When budgeting for central heating installation, understand that the overall central heating installation cost depends on both equipment and labor expenses. Below we’ll break down the average costs and what impacts pricing for this home upgrade, including details on how factors like the heating system type and home’s square footage impact your central heating installation cost.
Types of Central Heating Systems
There are a few main options when choosing a type of central heating:
Forced-air Furnace
Forced-air furnaces work by heating air and distributing it throughout your home via ductwork. They are one of the most popular options due to reasonable cost and installation flexibility.
Boiler and Radiators
Boilers heat water that gets distributed through radiators to warm your space. This hydronic system is common in colder climates and lends itself well to zoned temperature control.
Electric Heat Pump
Heat pumps use electricity to absorb heat from outdoor air and release it indoors. While installation costs are low, operating expenses can be higher than other central heat options.
Geothermal Heat Pump
Geothermal heat pumps use the consistent temperature below ground. A ground loop circulates water or antifreeze through pipes underground to transfer heat.
Factors That Affect Cost
There are several key considerations that impact how much you’ll pay for a new heating system:
Location and Size of Home
The location and square footage of your home influence sizing requirements and labour needed for installation. Larger homes or spaces spread across multiple floors are more complex and therefore costlier to outfit with central heating.
Type of Fuel
Heat systems that run on electricity, oil, natural gas, or propane all have different equipment and fuel supply needs which impact total expenses. Fuel rates can also fluctuate over time, so choosing wisely is important.
Additional Costs
You may need to upgrade outdated wiring or excavate land for placement of components like a geothermal ground loop. Central air conditioning added on to the system is another costly but nice-to-have upgrade.
Average Cost by Type of System
Here are cost ranges you can expect by different central heating types, including equipment, installation and additional system components:
Forced-air Furnace
$3,000 to $7,000
Boiler and Radiators
$6,000 to $12,000
Heat Pump
$4,000 to $8,000
Geothermal
$15,000 to $30,000+
As you can see, there’s significant cost variation across central heating methods. Geothermal is the most expensive. However, it can lead to drastically lower monthly utility bills over time.
Ways to Reduce Cost
While you may not have full control over the heating equipment and installation pricing, there are ways to reduce costs indirectly:
Improve Insulation
By preventing heat loss to begin with, your heating system won’t need to work as hard. Added insulation is one of the most impactful home upgrades.
Programmable Thermostat
Letting your thermostat automatically adjust temps when you’re asleep or away leads to heating fuel savings.
Correctly Sized System
An oversized central heating unit results in short cycling and energy waste. Have a professional assess your needs.
Take Advantage of Rebates
Many utility companies and municipalities offer rebates on high efficiency heating equipment to offset upgrade expenses.
Choosing the Right Contractor
Contractor selection plays a critical role in central heating costs and overall customer satisfaction:
Get Multiple Quotes
Rather than going with the first bid, get 3-4 quotes to find the best combination of price and service.
Check Licence and Certifications
Verify technicians are properly trained and meet local licensing requirements for heating equipment installation.
Read Reviews
Online reviews can provide insight into a company’s quality of work and customer service track record.
Conclusion
Installing central heating certainly isn’t cheap. But you can lower total costs through savvy preparation and system selection. Taking the time to understand your needs and different equipment options leads to smarter investments and long-term home comfort.
FAQs
What type of central heating is cheapest to run?
Geothermal heat pumps have the lowest operating costs of any central heating option. High upfront equipment expenses are offset down the road through energy bill savings.
Does replacing a furnace require new ductwork?
If your existing ductwork is in good condition, it can often be reused with a furnace replacement. Your contractor will advise if any updates or modifications are needed.
How long does a central heating system last?
With proper maintenance, central heating equipment like furnaces and boilers typically last 15-20 years. Heat pumps tend to have a slightly shorter lifespan of 10-15 years.
Should I get quotes from HVAC or plumbing companies?
That depends on your heating system type. HVAC professionals generally handle forced-air furnaces, while plumbing contractors specialise in boilers and hydronic heating.
Does installing AC cost more with central heat?
Yes, adding central air conditioning at the same time raises cost due to additional ductwork and the outdoor condenser unit needed. But combos allow for discounted parts.
