When a furnace dies, you can replace the furnace and keep everything else, or replace it and the AC together by adding a heat pump.
A new furnace
The old furnace comes out and a new one goes in. The AC outside and the coil above the furnace stay if they still work and fit the new cabinet. The installer reconnects the gas, venting, ducts and thermostat, then fires it up and checks it.
Efficiency moves the price most. An 80% furnace vents through a metal flue. A 95% furnace vents through PVC and needs a condensate drain, so switching from one to the other adds venting work. A tight closet or narrow basement stairs add labor too.
A furnace with a heat pump
This setup is called dual fuel. A heat pump takes the AC's place outside. It cools in summer and heats through most of the winter, and the furnace takes over on the coldest days. It costs about four times as much because it replaces both systems.
It makes sense when the AC is old too, or when you want to burn less gas. Most heat pump rebates apply here, and you can see the current rebate amounts.
What a good quote names
A good quote names the furnace model and its efficiency, says whether the coil and AC stay, and describes the venting work, including a condensate drain if the venting changes. A total and a brand name can't be compared with anything.
For more on cost, read the furnace installation cost guide.
Common questions
Do I have to replace the AC with the furnace?
No. If the AC is in good shape and its indoor coil fits the new furnace cabinet, a furnace-only replacement keeps both.
Why are rebate amounts not listed here?
They change often, and Xcel Energy lowered its heat pump bonus for Xcel gas customers on October 1, 2026. Current amounts are linked from this page.
