Furnace Replacement and Installation Cost in Alaska

New gas or electric furnace installation including unit, venting, gas line connections, electrical, and startup. In Alaska, homeowners can expect to pay between $2,750 and $11,000, with the average furnace installation costing around $4,950. Alaska's cold winters (10,570 heating degree days) put extra demand on heating systems, making regular maintenance essential.

Furnace Replacement and Installation Price Breakdown

System / Option	Low Estimate	High Estimate
80% AFUE gas furnace	$2,750	$5,500
90-95% AFUE gas furnace	$3,850	$7,700
96-98% AFUE modulating furnace	$5,500	$11,000
Electric furnace	$1,650	$4,400
Ductwork modification	$550	$2,200
Gas line installation	$330	$880

Factors That Affect Furnace Installation Cost in Alaska

1. System size and type: Larger systems and more complex equipment cost more to install. A 5-ton system will cost more than a 2-ton unit.
2. Electricity rates: Alaska's average electricity rate of 27.7¢/kWh affects long-term operating costs. Higher-than-average rates make efficiency upgrades more worthwhile.
3. Regional labor costs: West region costs are above the national average (+10%).
4. Climate demands: Alaska's Climate Zone 7 (Very Cold) puts heavy demand on heating systems during long winters.
5. Equipment age: Older systems (10+ years) may require costlier repairs due to discontinued parts. Consider our Repair or Replace Calculator to evaluate whether repair or replacement is the better investment.
6. Time of year: Summer is typically the cheapest time to replace a furnace.

How to Save Money on Furnace Replacement and Installation

• Get multiple quotes: Always get 2-3 estimates from licensed contractors in Alaska
• Schedule during off-season: Spring and fall installations may offer better pricing
• Ask about rebates: Federal tax credits and Alaska utility rebates can offset costs significantly
• Maintain regularly: Annual maintenance prevents costly breakdowns and extends equipment life
• Use our free tools: Try our HVAC Cost Estimator and BTU Calculator to size your system correctly

Alaska HVAC Energy Data

Metric	Alaska	National Average
Electricity Rate	27.7¢/kWh	18.1¢/kWh
Heating Degree Days	10,570	4,000
Cooling Degree Days	0	1,200
Annual Heating Cost	$2,200	$950
Annual Cooling Cost	$0	$265
Primary Heating Fuel	Natural Gas	Natural Gas

Frequently Asked Questions

How much does furnace installation typically cost in Alaska?

The average cost for furnace installation in Alaska is $4,950, with most homeowners paying between $2,750 and $11,000 depending on the specific system and installation complexity.

Is furnace installation more expensive in Alaska than other states?

West region pricing is about 10% above the national average. Major factors include local labor rates, cost of living, and seasonal demand patterns.

When is the best time to get a new furnace installed in Alaska?

Summer is typically the cheapest time to replace a furnace. Off-season installations (spring for heating, fall for cooling) often come with better prices and shorter wait times.

How can I find a reliable HVAC contractor in Alaska?

Look for contractors who are licensed in Alaska, insured, and have positive reviews. Get 2-3 written estimates, verify their license, and ask for references from recent jobs. Avoid contractors who give quotes without inspecting your system.

Pricing data compiled from Angi, HomeGuide, This Old House, Forbes Home, and Thumbtack (2025-2026). Energy data from U.S. Energy Information Administration. Costs are estimates and may vary by specific equipment, home conditions, and contractor. Last updated February 2026.