Your HVAC system is the most energy-intensive equipment in your home, accounting for approximately 42% of the average family’s annual energy costs. When you replace a furnace or boiler, choosing the right unit will dramatically reduce the costs and environmental impact of your heating system. When you’re looking at new units, it helps to understand what an efficiency rating is and how the number is calculated before making a decision.

What Is an Annual Fuel Utilization Efficiency Rating?

The Federal Trade Commission requires manufacturers to display the annual fuel utilization efficiency (AFUE) rating on labels for new furnaces and boilers. The AFUE rating measures the proportion of heat output compared to its fuel consumption. For instance, a high-energy furnace with a 95% efficiency rating transfers 95% of the heat produced into the home, while only 5% escapes through the chimney or other means. Higher ratings translate to lower heating and cooling costs, while furnaces and boilers with ratings of 80% or below will be more expensive to operate.

How Should You Choose a New Furnace?

The most advanced HVAC equipment with the highest ratings typically feature sealed combustion chambers, which pull air directly into the unit and expel exhaust gases outside of the home. Older, unsealed furnaces often send heated air up a chimney, which wastes energy and drives up utility expenses.

Choosing an appropriately sized unit will also make your home more energy efficient. An oversized unit will produce more heat than necessary, but a furnace that’s too small cycles on and off too frequently, which also causes heat loss. If you’re not sure which furnace or boiler to choose, an HVAC contractor can recommend the ideal equipment based on your home’s size, insulation, and thermostat settings.

By using an energy-efficient unit and properly insulating your home, you can save money on your utility bills and reduce the environmental impact of your household. With over 40 years of experience and an inventory of advanced HVAC equipment, Gary Duncan Service Company helps keep homes comfortable throughout DeSoto County and northern Mississippi. If you’re buying a new furnace or boiler, their Trane®-certified technicians will help you choose the most energy-efficient model for your home. To learn more about their services and request a quote, visit their website or call (662) 895-2023.