Preparing for New Furnace Efficiency Rules

Understand the installation needs and attributes of high-efficiency, condensing furnaces so that you — and your customers — make a smooth transition.

Builders and remodelers in the northern half of the United States should start bidding farewell to noncondensing furnaces.

A U.S. Department of Energy mandate set to take effect in less than a year will affect the minimum efficiency for residential furnaces sold in the northern half of the country. To prepare for the changes, construction professionals should make sure they understand the impact of the ruling on the types of products and installation techniques that will be available for their projects.

"Space heating is, by and large, the largest end-use load in residential buildings," James Lyons, a research engineer with Davidsonville, Md.-based research firm Newport Partners, says. "And you're looking at a dramatic change in the standard equipment that goes in homes in the northern half of the U.S."

Set to take effect in May 2013, the Energy Department's direct final ruling mandates that all furnaces sold and installed in heating climates must be at least 90 percent efficient as measured by annual fuel utilization efficiency, or AFUE. Furnaces in this efficiency range are known as condensing furnaces. Because they extract 90 percent or more of the available heat from their combustion gases, the water vapor in those gases condenses into liquid water and must be managed and drained.


With an AFUE rating of up to 95 percent, the Trane XC95 gas furnace will meet the minimum furnace efficiency requirements.

The ruling will have a significant impact in many markets around the country, according to Jim Lowell, a furnace product manager in the Residential Solutions division of Ingersoll Rand, maker of Trane furnaces. While high-efficiency furnaces are relatively common in some northern regions, other areas, such as greater Chicago, have a large installed base of 80 percent efficient [noncondensing] furnaces.

"If [they've] got a large number of homes that already have noncondensing furnaces and they take the path of least resistance, they're going to stay with those noncondensing furnaces for the most part," he says. "What's going to happen next year is that's an option that's going to go away."

The good news? Contractors affected by this law won't see any products they're not familiar with. Contractors in northern climates have likely already installed condensing furnaces, which require a condensate management system and vent through PVC piping instead of metal. For remodeling customers, however, replacing the obsolete venting in their home with a new venting system may add complexity to their project.

To help their customers understand the new rules, pros can highlight the advantages of high-efficiency furnaces, Lowell suggests. "The biggest part of the story is the efficiency that a consumer will get from a higher-efficiency product and the savings that they will get," he says. "In many cases, they will find that they can get a payback within the life of the furnace, and consequently it's a smart economic choice to upgrade to a more efficient furnace like this."

A Comparative Study and Analysis of Residential Heating Systems, conducted by Newport Partners, analyzed 15 heating systems to compare metrics such as annual energy costs, CO2 emissions, and simple paybacks for higher first cost. The study found that a heating system with a 95-AFUE high-efficiency propane-fueled furnace is less expensive to install than heating oil, air source heat pump, and ground source heat pump alternatives. The high-efficiency propane-fueled furnace actually achieved a slightly lower first cost than the 78-AFUE standard-efficiency propane furnace because of its reduced venting costs. The high-efficiency furnace also saved $430 in annual energy costs compared with the standard-efficiency furnace, and propane furnaces produced 15 percent fewer CO2 emissions than oil systems of the same efficiency. To analyze the results in your own market, use the interactive Comparative Heating Map, below.

How do propane heating systems compare with alternatives in your project area? Updated for 2012.

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Customers leaving behind old furnaces may find that they can upgrade more than just their efficiency. Furnaces with variable-speed technology or modulating gas valves — such as Carrier's Infinity 98 gas furnace line — may not have been available the last time the customer bought a furnace, notes John Gibbons, director of residential product strategy at Carrier. "A furnace even 10 years old isn't as sophisticated as the products on today's market," he says. "And the warranties are currently longer, so there's some peace of mind."

Today's systems also benefit from accessories like Trane's ComfortLink XL950 LCD color display thermostat control. "So customers have an opportunity to upgrade not only from a fuel-efficiency standpoint but also from a comfort standpoint in their home," Lowell says.

You can start exploring high-efficiency furnaces now in the Propane Products and Appliances Directory by filtering the results to include only furnaces with efficiency greater than 90 percent.

To learn more about how high-efficiency, propane furnaces compare with other types of heating systems, check out A Comparative Analysis of Residential Heating Systems at the Propane Training Academy.


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