The four main reasons why you would need to replace a furnace are: 1) Extremely old and inefficient. If you move into a home that was built in the 1960s or even earlier, chances are that it has an old boiler system or furnace. This doesn't necessarily mean that you need a new furnace, but chances are that your system will need an overhaul to make it energy efficient for you. 2) High cost of fuel to run your furnace. Find out which is least expensive in your area: gas or electricity, and try to use the least expensive resource for your system. 3) Heating load. Heating load is the amount of energy required to maintain a steady 65-degree temperature indoors. To find out your heating load, you may want to consider contacting your utility company to perform an energy audit, which will help you figure out ways to make your home more energy efficient - and possibly save you from replacing the entire furnace or air conditioner. If you find that despite your efforts your furnace continues to work inefficiently, you probably need a new furnace. 4) Government Rebates. Ontario homeowners can get Government of Canada grants for a new furnace when they replace heating equipment. 1. $790 — gas furnace 94% AFUE or higher with a brushless DC motor (when installing a condensing furnace for the first time)
or $650 — gas furnace 94% AFUE or higher with a brushless DC motor
2. $250 — gas furnace By upgrading your furnace to a high-efficiency model that has an Electronically Commutated Motor (ECM) designed to decrease energy use, Ontario Power Authority allows a $250 rebate.
The HEATING & COOLING INCENTIVE runs from January 1, 2011 through to December 31, 2011.