A homeowner in Providence quoted $7,500 to replace a 20-year-old furnace and a neighbor quoted $14,000 for what sounds like the same work — that range is real, and the reasons it exists are predictable. This is what actually drives furnace replacement cost in Providence and the surrounding Rhode Island metro in 2026.
2026 furnace replacement cost ranges, Providence and RI metro
| Furnace type | Equipment + install (typical 80,000 BTU home) |
|---|---|
| Standard gas furnace (80% AFUE) | $5,500 to $8,500 |
| Mid-efficiency gas furnace (90-92% AFUE) | $7,000 to $10,500 |
| High-efficiency gas furnace (95-98% AFUE) | $8,500 to $13,500 |
| Standard oil furnace (replacement only) | $7,500 to $11,000 |
| High-efficiency oil furnace (85%+ AFUE) | $9,500 to $14,000 |
| Oil-to-gas conversion (gas line drop included) | $11,500 to $18,500 |
What moves the price within those ranges
1. AFUE efficiency rating
AFUE (Annual Fuel Utilization Efficiency) measures what percent of fuel turns into heat in the home. A 80% AFUE furnace wastes 20 cents of every fuel dollar. A 95% AFUE furnace wastes 5 cents. The higher-AFUE unit costs $2,000 to $4,000 more up front and saves roughly 15 percent on annual fuel — payback runs 6 to 10 years depending on fuel prices.
2. Single-stage vs two-stage vs modulating
Single-stage runs full-blast or off. Two-stage modulates between two firing rates. Modulating (variable-speed) furnaces adjust output continuously. Modulating adds $1,500 to $3,000 to the install and delivers more even temperatures, quieter operation, and longer equipment life.
3. Existing flue/venting type
High-efficiency furnaces (90%+ AFUE) require sealed PVC venting through a side wall — the old metal flue cannot be used. If the old furnace vented up a chimney, expect $500 to $1,500 extra for PVC vent install. If the chimney was shared with the water heater, the water heater may also need re-venting.
4. Ductwork condition
Furnace replacement assumes existing ductwork is correctly sized for the new unit. If the old furnace was oversized (common in 1970s-1990s homes), the new properly-sized unit may run into duct restriction issues that show up as airflow problems. Duct modifications run $500 to $2,500 depending on accessibility.
5. Permits and inspection
Providence requires a mechanical permit for furnace replacement ($75 to $150) and a final inspection. Pawtucket, Cranston, Warwick, and East Providence have similar requirements. The permit fee should be on the quote — if it isn’t, the work may not be permitted.
6. Combustion air and code compliance
RI code requires adequate combustion air for fuel-burning appliances. Older basements with tight modern insulation can starve a furnace of combustion air, causing dangerous backdrafting. The fix (combustion air intake or sealed combustion model) costs $300 to $1,500.
Federal tax credits available in 2026
| Credit | Amount | Equipment requirement |
|---|---|---|
| Federal 25C (gas furnace) | 30 percent of cost, capped at $600 | 97% AFUE or higher |
| Federal 25C (oil furnace, biofuel eligible) | 30 percent of cost, capped at $600 | Must use eligible biofuel blend |
Quote checklist — what should be in writing
- Specific manufacturer and model number of the furnace
- Exact BTU rating and AFUE rating
- Whether existing thermostat is included or replaced
- Permit fee included or excluded
- Removal and disposal of old equipment
- Manufacturer warranty terms (parts + labor)
- Installer labor warranty (1 year minimum)
- Code-required upgrades (venting, combustion air)
What Horizon HVAC handles
Horizon HVAC quotes furnace replacement as a flat-rate written quote in Providence, Pawtucket, Cranston, Warwick, East Providence, Johnston, North Providence, Smithfield, and across the broader RI service area. We install Carrier, Lennox, Trane, Bryant, Goodman, and Rheem gas and oil furnaces.
Owner Mike Cesaroni has been doing furnace installs in RI since 2008. RI HVAC License #00007430.
Further reading
- Heat pump vs boiler 20-year cost comparison
- Clean Heat RI rebate math
- Comfort Club maintenance plans for new equipment
Get a flat-rate furnace quote
A free in-home estimate gives you the specific equipment, all required code work, permit fees, and federal credit eligibility in writing.
Call (401) 425-9879 or schedule online.
Sources: U.S. Department of Energy furnace efficiency guidance, EnergyStar certified equipment requirements, Rhode Island Mechanical Code, IRS 25C credit guidance. Install ranges are 2026 RI metro typical pricing; final pricing depends on home configuration.