The majority of homes throughout Wisconsin get their heat from forced-air furnaces and fuel-fired systems in particular. Wisconsin is also notable for its growing adoption of high-efficiency furnaces. These systems are more advanced and cost more to purchase and install. That said, they can save you significant money over the life of the equipment. Let’s explore what you should know before choosing your new furnace.

Sizing Your New Furnace

Whether installing a mid- or high-efficiency furnace, accurate sizing is crucial. It’s the key to minimizing your costs over the life of the equipment. That information is also going to shape many of the other decisions you’ll have to make. Hiring a professional is imperative because they’ll perform a custom load calculation. That process will determine the heating output you need by factoring in your home’s floor plan and cubic footage. It will also account for the local climate, your home’s location, its building envelope, and so forth.

Annual Fuel Utilization Efficiency

The HVAC industry measures furnace efficiency using the annual fuel utilization efficiency (AFUE). The higher the AFUE rating, the less fuel a furnace will use and the cheaper it’ll be to run. A standard mid-efficiency gas furnace has an AFUE rating of around 80. That indicates that it successfully converts about 80% of the fuel it burns into home heating. High-efficiency furnaces must have an AFUE rating of at least 90 and are often higher. This increase in efficiency can translate to meaningful fuel savings over time, depending on usage and conditions.

ENERGY STAR Certification

ENERGY STAR is a joint program of the U.S. Department of Energy (DOE) and the Environmental Protection Agency (EPA). The federal government establishes minimum efficiency standards for HVAC manufacturers, while the EPA sets higher performance benchmarks focused on reducing environmental impact. Furnaces that meet those criteria earn the ENERGY STAR label. ENERGY STAR–certified models are clearly labeled, while the yellow EnergyGuide label provides standardized efficiency and estimated operating cost information for comparison.

Rebates

ENERGY STAR furnaces are often eligible for rebates that can help lower upfront costs. Homeowners can search the EPA website for available incentives and should also contact their local utility providers for regional offers. Local HVAC companies can often assist with identifying and applying for these incentives.

Tax Credits

Homeowners may qualify for the Energy Efficient Home Improvement Credit, a nonrefundable federal tax credit worth 30% of eligible installation costs, subject to annual and equipment-specific limits. Credit availability and eligibility requirements can change, so homeowners should review current IRS guidelines or consult a tax professional.

Fuel Options for Your Furnace

Natural gas is widely used in Wisconsin, with more than 70% of households relying on it for heat. If your property has access, natural gas is often the most cost-effective and convenient option. If gas is unavailable, common alternatives include liquid propane and heating oil. Both fuels are delivered and stored in tanks on the property, and their relative costs can vary depending on availability and market conditions in your area.

Gas Plumbing Considerations

Many homes in Wisconsin already have gas plumbing installed. However, when upgrading a furnace, existing gas piping should be evaluated to ensure compatibility with the new equipment. Depending on the furnace model and the home’s existing infrastructure, modifications to gas piping may be required.

The Core High-Efficiency Feature: Condensing

In the context of furnaces, high efficiency refers specifically to fuel-burning systems. All fuel-fired furnaces create combustion byproducts that must be safely vented outside the home. Standard furnaces lose heat during this process, which is one reason they typically operate at around 80% efficiency. High-efficiency, or condensing, furnaces include a secondary heat exchanger that captures additional heat before venting exhaust gases. This process produces condensation that must be safely drained, which is why condensing furnaces include components such as a drain line, drip pan, and wet switch.

Other Features to Consider

A condensing design is not the only feature that separates high-efficiency furnaces from mid-efficiency models. Depending on the system, additional features may be available.

Multistage Burners and Modulating Gas Valves

Conventional furnaces typically operate at a single fuel input level, which can be inefficient when full heating capacity isn’t required. Multistage burners offer high and low operating modes, while modulating gas valves allow for more precise adjustments to fuel flow based on heating demand.

Variable-Speed Air Handling

Traditional HVAC blowers operate at a fixed speed set during installation. Variable-speed blowers adjust output as needed to improve comfort and efficiency. In some cases, upgrading to a variable-speed blower may also require updates to the existing air conditioning system.

High-MERV Air Filtration

Minimum efficiency reporting value (MERV) ratings measure how effectively HVAC filters capture airborne particles. Higher MERV ratings provide better filtration but also increase airflow resistance. Many standard furnaces are designed to accommodate filters up to MERV 8. High-efficiency furnaces often support filters rated up to MERV 13, which can significantly improve indoor air quality.

Humidity Control

Indoor air tends to become drier during winter months, and fuel-fired furnaces can intensify that effect. Many high-efficiency furnaces can be paired with bypass or whole-home humidifiers to help maintain balanced indoor humidity and improve overall comfort.

Energy-Saving Add-Ons

High-efficiency furnaces can be paired with additional features that further improve energy savings and comfort, such as advanced thermostat controls and zoning systems.

Programmable or Smart Thermostat

The DOE estimates that proper temperature setbacks can reduce heating costs, with potential savings around 8% depending on usage. Programmable thermostats allow homeowners to automatically adjust temperatures throughout the day. Smart thermostats build on this functionality by offering Wi-Fi connectivity, remote access, and energy monitoring features.

Zone Control System

Central HVAC systems can waste energy by heating unused areas of a home. When zoning systems are properly designed and installed, energy savings of up to 30% may be possible. Zoning typically requires compatible equipment, such as variable-speed air handlers, zone dampers or smart vents, and one or more smart thermostats.

Expert High-Efficiency Furnace Installations in Wisconsin

Southport Home Services is a trusted local HVAC company with over 15 years of experience installing high-efficiency furnaces. We have locations in Caledonia, Madison, and Wausau, WI. Our team offers a wide selection of furnaces and add-on options from leading manufacturers. We provide on-site installation consultations at no charge and without obligation, during which we can review available incentives and financing options on approved credit.

If you are ready to upgrade your comfort and prepare for winter with confidence, contact us today.

Meet the Author
Thomas Suchla
Thomas Suchla

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