Furnace Installation & Replacement in Sacramento

Signs it's time to replace your furnace

• The heat exchanger is cracked. On most older furnaces, this ends the furnace's useful life.
• It is 15 to 20 years old or more and needs a major part such as a blower motor, inducer or control board.
• Repairs keep coming. Two or three service calls in a couple of winters is a pattern.
• Some rooms never get warm, or the furnace runs constantly and gas bills keep climbing.

If the furnace is younger and one part failed, start with furnace repair.

80% vs 95% AFUE in a mild climate

AFUE (annual fuel utilization efficiency) is the share of the gas you buy that ends up as heat in your home. An 80% furnace sends about a fifth of its fuel's energy up the flue. A 95% or higher condensing furnace pulls extra heat out of the exhaust, which cools it enough to condense into water.

	80% AFUE (non-condensing)	95%+ AFUE (condensing)
Venting	Metal flue through the roof, often reusing the existing vent if it is in good shape	PVC intake and exhaust pipes through a wall or roof
Condensate	None	Needs a drain line and trap, sometimes a pump
Upfront cost	Lower	Higher, more so if new venting is hard to route
Gas savings	Baseline	Lower gas use for the same heat
Good fit in Sacramento	Smaller gas bills, tight budget, simple vent swap	Larger homes, higher gas use, longer stay in the home

Sacramento winters are short and mild, so a furnace here runs far fewer hours than one in a cold climate. That stretches out the payback on a 95% furnace. We look at your gas use and the venting path before recommending one.

Federal rules may change this choice. The Department of Energy adopted a standard that would require 95% AFUE for most new gas furnaces made on or after December 18, 2028. In June 2026 the U.S. Supreme Court sent the legal challenge back to the federal appeals court, so at the time of writing (2026) its timing is uncertain. Either way, it would not affect a furnace you install today.

You can also choose single-stage, two-stage or modulating burners. Two-stage and variable-speed equipment runs quieter and evens out temperatures in two-story homes.

Attic furnaces in Sacramento

Many Sacramento-area homes have a horizontal furnace in the attic instead of a closet or garage. Attic installs need extra planning:

Attic ducts are often the weakest part of the system, and fixing them during the install costs less than coming back later. See air duct sealing for how leakage testing works.

Matching the furnace with your AC and coil

A furnace and central AC share the same blower and ductwork, and the AC's indoor coil sits on top of or beside the furnace. When you replace one, check the other:

• Blower size. The furnace blower has to move the right airflow for your AC's tonnage. A mismatch hurts cooling on 100°F days.
• Coil fit. The coil cabinet has to match the new furnace's width and airflow direction.
• Refrigerant. New AC and heat pump equipment now uses lower-GWP A2L refrigerants such as R-454B and R-32. A newer coil will not pair with an older R-410A outdoor unit in every case, so a furnace replacement next to an aging AC is a good moment to plan both.

If your AC is more than 12 to 15 years old, get a price for doing both. See AC replacement for what that involves.

When a heat pump makes more sense

A heat pump is an air conditioner that can also run in reverse to heat your home. In a climate like Sacramento's, where winter lows rarely drop far below freezing, a modern heat pump can handle all of your heating without a gas furnace.

Option	How it heats	When it fits
Gas furnace + AC	Burns natural gas	You want to keep gas, or the electrical panel has no room
Heat pump + air handler	Electric, moves heat from outdoor air	You are replacing both furnace and AC, and want to go all-electric
Dual fuel	Heat pump most of the time, gas furnace as backup	You want lower gas use but like the gas backup

SMUD encourages customers to move from gas to electric, and in February 2026 it increased its heat pump HVAC rebates, with the largest amounts for gas-to-electric conversions. SMUD pays these through its Contractor Network, and Airflow has been a participating contractor since 2020, so for SMUD customers we can submit the rebate paperwork on a qualifying heat pump conversion. The federal 25C tax credit for heat pumps and furnaces ended for equipment placed in service after December 31, 2025. At the time of writing (2026), the statewide TECH Clean California heat pump incentives are reported as fully reserved for single-family homes, so check techcleanca.com before counting on them. Rebates change often. Check current terms before you sign.

Read more on our heat pump installation page, or ask for both options in one estimate.

Permits, Title 24 and HERS testing

Replacing a furnace in California requires a building permit. California's Title 24 Energy Code also sets testing rules for HVAC changeouts. A few points that apply to most Sacramento homes:

• Duct leakage testing. When you replace a furnace on a ducted system, the ducts usually have to be tested for leakage and sealed if they fail. A third-party HERS rater verifies the result.
• AC at the same time. If the AC or heat pump is replaced too, refrigerant charge and airflow verification are added.
• Safety items. The inspector looks at venting, gas connections, combustion air and clearances. California also requires carbon monoxide alarms in homes with gas appliances.

We pull the permit with the City of Sacramento, Sacramento County or your city, schedule the HERS rater, and meet the inspector.

How a furnace replacement works

1. Free in-home estimate. We look at the furnace, venting, ducts, coil, electrical and gas line, and ask how the house heats and cools room by room.
2. Load calculation. We size the furnace to your home, not to the old furnace's label. Many older furnaces are oversized.
3. Options and price. Typically an 80% and a 95% option, and a heat pump option when it fits, with what each includes.
4. Permit. We file it before install day.
5. Install day. Remove the old furnace, set the new one, connect gas, venting, ducts, condensate and wiring, then start it up and test combustion and temperature rise. A straight swap is usually one day. Attic installs and new venting can add time.
6. Testing and inspection. HERS testing and the city or county inspection close out the permit.

What does furnace replacement cost in Sacramento?

What moves the price:

• Efficiency and features. 80% vs 95% AFUE, single-stage vs two-stage or modulating, and blower type.
• Venting. Reusing a sound flue costs less than running new PVC venting through walls or the roof.
• Location. Attic installs take more time than a garage or closet swap.
• Duct condition. Ducts that fail the Title 24 leakage test need sealing or repairs.
• Coil and AC. Replacing the coil or the whole AC adds equipment but saves labor compared with doing it later.

Where we install furnaces

We replace and install furnaces across the Sacramento region, including Folsom, El Dorado Hills, Roseville and Rocklin.

Furnace replacement FAQ