Furnaces in Elk Grove and Folsom homes are often 15 to 25 years old, installed when the neighborhoods were built. When one fails in the middle of winter, the decision has to happen quickly. This guide covers what a replacement costs, how to choose an efficiency level, what the city requires and what happens on installation day.
What a furnace costs
Cost guides give wide ranges because homes differ. Angi’s 2026 data puts a typical furnace installation at about $2,800 to $6,900, with an average near $4,800, and gas furnace installations at about $3,800 to $10,000. In our new HVAC system cost guide, replacing the furnace and the air conditioner together generally runs $11,000 to $15,000 for a standard efficiency pairing. What moves the price:
- Efficiency. A 95 percent furnace costs more than an 80 percent one and needs PVC venting and a condensate drain.
- Size and staging. Two-stage and variable-speed furnaces cost more than single-stage models.
- Location. Attic and closet installations take more labor than a garage.
- Ductwork. Damaged or undersized ducts can add to the job, and California’s energy code can require duct testing.
80 percent or 95 percent AFUE
AFUE, or annual fuel utilization efficiency, is the share of the gas energy that becomes heat in your home over the heating season. The federal minimum for a new gas furnace is currently 80 percent. The Department of Energy calls 90 to 98 percent furnaces high efficiency, because they condense the water vapor in the exhaust to capture extra heat.
A 2023 federal rule would require 95 percent AFUE for non-weatherized gas furnaces manufactured on or after December 18, 2028. That rule is under court review, so its final status is not settled. Whatever happens, the higher-efficiency furnace is not automatically the better deal here. Sacramento heating seasons are short, so the gas savings take longer to add up than in colder cities. Our best furnace brands guide covers this in more detail.
Sizing matters more than the label
A furnace that is too large heats in short bursts, wears faster and heats unevenly. The correct size comes from a load calculation, not from copying the old unit. The national standard for that calculation is ACCA’s Manual J, and many codes and local authorities require it. See what size furnace do I need.
Permits in Elk Grove and Folsom
- Elk Grove: replacement of a furnace, condenser or ducts in the same location can be filed through the city’s eTrakit system, and the city says to allow 24 to 48 hours. Applications filed after December 30, 2025 must meet the 2025 codes.
- Folsom: over-the-counter permits are available for replacement heating and air conditioning units, and applications and inspection scheduling are online through eTrakit.
A licensed contractor should pull the permit. You can verify a contractor’s license on the CSLB website.
Title 24 and duct testing
California’s energy code treats a furnace or air handler replacement as an alteration. Under the 2022 code, replacing the equipment can require the connected duct system to be sealed and tested by a third-party rater, and the permit comes with compliance forms. The 2025 code took effect on January 1, 2026 and applies to permits filed after that date, so ask your contractor which tests your permit requires.
Natural gas and electricity
PG&E delivers natural gas in both Elk Grove and Folsom. Electricity in Folsom is provided by SMUD. SMUD’s rebate program covers gas-to-electric conversions to a heat pump, up to $3,000 for a variable-stage system at the time of writing, and lists no rebate for a new gas furnace. If you are weighing both options, read heat pump vs furnace in Sacramento and SMUD heat pump rebates.
What installation day looks like
- The crew protects floors and shuts off gas and power.
- The old furnace is removed and the new one is set and connected to gas, venting, ducts and the thermostat.
- The crew starts the furnace, checks the gas pressure and temperature rise, and tests the safety controls.
- The city inspector reviews the work, and a rater tests the ducts if required.
Carrier says a standard installation takes about a day. Lennox gives a range of roughly four to ten hours, and says duct changes can stretch it to a day or two.
Questions to ask each contractor
- Did you do a load calculation, and may I see it?
- What is the exact model number and efficiency?
- Does the price include the permit, duct testing and disposal of the old unit?
- What does the warranty cover, and does it include labor?
We install furnaces across the Sacramento area. See our furnace service in Elk Grove, our furnace service in Folsom or the guide for Roseville and Rocklin. When you are ready, contact us.
Frequently asked questions
How much does a new furnace cost in Elk Grove or Folsom?
Angi’s 2026 cost data puts a typical furnace installation at roughly $2,800 to $6,900, with an average near $4,800, and gas furnace installations at about $3,800 to $10,000. Your price depends on size, efficiency, venting and any duct work. A furnace and air conditioner replaced together typically costs about $11,000 to $15,000 in our area.
Do I need a permit to replace a furnace in Elk Grove or Folsom?
Yes. Elk Grove accepts same-location furnace replacement permits through its eTrakit system, and Folsom issues over-the-counter permits for replacement heating and air conditioning units, also through eTrakit. A licensed contractor normally files the permit and schedules the inspection.
Is a 95 percent AFUE furnace worth it?
It uses less gas than an 80 percent furnace, but the savings depend on how much you run it. Sacramento winters are short and mild, so the payback on the higher efficiency is slower than in a cold climate. Compare the extra equipment cost, the venting work and your expected gas use before deciding.
How long does furnace installation take?
Carrier says a standard furnace installation takes about one day, and Lennox gives a range of roughly four to ten hours. Moving the furnace, changing the venting or replacing ductwork can add a day or more.
Is there a federal tax credit for a new furnace in 2026?
No. The federal energy efficient home improvement credit ended for property placed in service after December 31, 2025.