How does a furnace's efficiency affect energy bills?

A furnace's efficiency significantly impacts energy bills because it determines how effectively the furnace converts fuel into heat. Furnaces are rated by their annual fuel utilization efficiency (AFUE), which indicates the percentage of fuel that is converted into usable heat for your home. A higher efficiency rating means that a greater percentage of fuel is being effectively used, resulting in more heat produced for the same amount of fuel consumed.

When a furnace operates at higher efficiency, it requires less fuel to generate the desired level of heating. This means that homeowners will spend less on fuel over time, leading to lower overall energy bills. Conversely, a furnace that operates at lower efficiency will waste more fuel, meaning homeowners will have to purchase more fuel to achieve the same level of warmth. This waste translates directly to higher energy costs. Therefore, it is clear that a more efficient furnace not only conserves energy but also directly contributes to reduced energy expenses.