Which efficiency level to ask for
AFUE is the share of the fuel a furnace turns into heat over a season. The federal minimum for a non-weatherized gas furnace is 80% AFUE (10 CFR 430.32 as read on the eCFR; confirm the current text). ENERGY STAR asks for 97% or more in the northern U.S., and Michigan is on that list. ENERGY STAR estimates its gas furnaces there are up to 18 percent more efficient than baseline models and can save $160 a year.
For a 70,000 Btu/h furnace in the northern region, the Department of Energy's FEMP tables show annual energy cost of $597 at 80% AFUE, $503 at 95% and $482 at 99%, at federal energy prices rather than Michigan rates. FEMP says an ENERGY STAR furnace saves money if it costs no more than $1,345 (2023 dollars) above the 80% model.
Furnace replacement costs in Michigan: wages, permits, energy and rebates
Our estimate for this job in Michigan is $3,250 to $7,225 per installed furnace. It is a model, not a quote, built from national published cost ranges and adjusted by Michigan's wage ratio to the US (1.00), with a typical permit fee added for the work.
No company prices are in this table yet. We are collecting what Michigan heating and cooling companies publish on their own sites, and when there are enough we will add them with the number of companies and the date we read them. Until then it shows wages, permit fees, energy figures and rebates. The furnace replacement cost guide explains what moves the price.
| Item | Figure | What it is |
|---|---|---|
| Estimated range, not a quote | $3,250 to $7,225 per installed furnace | Built from 2 national published ranges, adjusted by the Michigan HVAC technician wage ratio (1.00) plus a typical permit fee ($105). |
| Technician wage, Michigan mean | $31.01 an hour | Technician pay (BLS, May 2025), not a price. |
| Furnace permit, Grand Rapids | $21 plus a $52 application | Effective July 1, 2026; $73 by our addition. |
| Furnace permit, Sterling Heights | $57 to $64, plus $55 application | $57 up to 75,000 BTU, $64 above that; 2026-2027 form. |
| Furnace permit, Warren | $80 | Form dated 4/25/2023; confirm with the city. |
| Residential heating permit, LARA state | $50 plus a $75 application | Only where the state enforces the code. |
| Annual energy cost, 70,000 Btu/h, northern region | $597 at 80% AFUE, $503 at 95% | FEMP illustration at federal prices, not a Michigan bill. |
| DTE gas furnace rebate | $100 to $400 by AFUE | Funds limited. |
| Consumers Energy gas furnace rebate | $100 or $300 by AFUE | Installs in 2026; can change. |
How we estimate costs: the figures here are estimates, not quotes, built from BLS wages, published city permit fees and federal energy-cost evidence. We are collecting the prices Michigan heating and cooling companies publish; we have not yet collected quotes from them, and we will say how many and from when once we do. Estimated range. Built from national published ranges (2 sources), adjusted by Michigan's HVAC technician wage ratio to the US (1.00, BLS May 2025), plus the local permit fee where the city publishes one. Not a quote. We have too few Michigan company prices yet to show a range. Full method. Prices as of Oct 19, 2026.
Replace now or repair once more
ENERGY STAR says heating and cooling equipment more than 10 years old should be evaluated by a professional HVAC contractor, a cue for an evaluation that carries no lifespan. The repair-or-replace tool walks through your situation, and furnace repair covers what to check first.
- The system is not yet at ENERGY STAR's 10-year evaluation point and the fault is one part.
- An evaluation finds a cracked heat exchanger, which ENERGY STAR says can make equipment operate less safely.
Furnace rebates in Michigan as of Oct 19, 2026
DTE pays gas customers $400 for a furnace at 98% AFUE or higher, $200 at 97% and 96%, and $100 at 95%. Its page shows a Limited Funds Available banner, pays first come first served, and offers a $300 additional bonus on qualified installs from Oct 1 to Dec 15, 2026, applications by Dec 18, 2026. Consumers Energy's 2026 chart pays $100 for 95 to 96.99% AFUE and $300 for 97% or more on installs from Jan 1 to Dec 31, 2026, and says amounts can change without notice.
Which applies depends on your gas supplier, and border streets need an address check; in Detroit the state's territory data points mostly to DTE Gas. The IRS says the federal 25C credit ended for property placed in service after Dec 31, 2025. Use the rebate finder and read the DTE and Consumers rebate guide before you sign.
Sizing the furnace and checking the installer
A new furnace should be sized from a heat-loss calculation of your house, not the old unit's label; Manual J is the standard residential method, so ask to see it. Our system size estimator shows what a sizing estimate depends on. LARA's FAQ says plans are required for a residential home when total heating input exceeds 375,000 BTU/H, so ask about that on a large house.
Installing a furnace requires a Michigan mechanical contractor license. Which class applies is our inference: HVAC equipment, plus ductwork where it changes. Ask for the license number and check it on the LARA lookup. The guide to finding a licensed HVAC contractor has the steps.
Before you sign at the kitchen table
Michigan's Home Solicitation Sales Act lets you cancel a sale solicited and agreed at your home until midnight of the third business day, except when you ask for work to start without delay in an emergency. Our reading is that it applies when a seller comes to you, and not when you phoned the company yourself.
When a failed furnace cannot wait
- You smell gas: leave, then call 911 and your gas utility from outside.
- A carbon monoxide alarm is sounding: get outside and call 911.
- A working furnace you are thinking of upgrading.
Before you collect quotes
- Read the efficiency and input rating on the current furnace's data plate.
- Ask your gas utility which rebate programs it runs and whether funds remain.
- Get each quote in writing with the AFUE, load calculation, permit responsibility and license number.
Permit for a furnace replacement
LARA's exemption list covers portable equipment under 30,000 Btu/hr and window air conditioners of not more than 1.5 hp, among a few items. A furnace is not on it, so replacement needs a permit; we infer that from the list, and LARA has no sentence saying so. The license holder secures it; an owner-occupant of a single-family house may install personally, with a permit and an inspection afterward. Grand Rapids issues its own; elsewhere check LARA's Statewide Jurisdiction List. See the mechanical permit guide.
Ask for the license number and check it with your state's licensing board before any work starts. Our state pages link the lookup.
- Grand Rapids mechanical permit fee schedule Read Oct 19, 2026.
- Sterling Heights mechanical permit fee schedule Read Oct 19, 2026.
- Warren mechanical permit fee schedule Read Oct 19, 2026. Confirm with the source before you rely on it.
- LARA (state) mechanical permit fee schedule Read Oct 19, 2026.
- LARA BCC Mechanical FAQs Read Oct 19, 2026.
- MCL 339.5809 Read Oct 19, 2026.
- MCL 339.5803 and 339.5801 Read Oct 19, 2026.
- LARA: Find / Verify a Licensed Professional or Business Read Oct 19, 2026. Our reading of the source, not something it states outright. Confirm before you rely on it.
- LARA BCC: Mechanical Permit Information Read Oct 19, 2026.
- MCL 339.5819 Read Oct 19, 2026.
A tool for this job
Repair or replace, by age and quote
If you smell gas or a carbon monoxide alarm is sounding, leave first. Otherwise four taps give a direction based on the one age fact we could source: ENERGY STAR says equipment more than 10 years old, or not keeping the house comfortable, should be evaluated by a professional HVAC contractor. It marks when to get an evaluation and gives no lifespan, and the tool asks for and prints no prices.
Open the toolQuestions people ask
Do you need a permit to replace a furnace in Michigan?
It is not on LARA's list of exempt work, so it needs a permit, secured by the licensed contractor. Your city or LARA's Statewide Jurisdiction List shows who issues it.
What efficiency furnace should I buy in Michigan?
Rebates tier by AFUE: DTE pays most at 98% and Consumers Energy at 97%, so check your utility's tiers before choosing.
Are there rebates for a new furnace in Michigan?
DTE's rebate tops out at $400 and Consumers Energy's at $300, as of Oct 19, 2026. The federal 25C credit ended after 2025. See the rebate finder.
What is the average lifespan of a furnace?
The sources we read give none. ENERGY STAR's guidance is to have equipment over 10 years old evaluated by a professional HVAC contractor.
What is the $5,000 rule for furnaces?
No authoritative source states it. The repair-or-replace tool shows it only as a labeled rule of thumb.
- U.S. Bureau of Labor Statistics, OEWS May 2025: heating, air conditioning and refrigeration mechanics and installers (SOC 49-9021), Michigan statewide Read Oct 19, 2026.
- DOE FEMP: Purchasing Energy-Efficient Residential Furnaces Read Oct 19, 2026.
- DTE Furnaces Read Oct 19, 2026.
- Home Solutions 2026 Qualifying Measures and Incentive Levels (res-programs.pdf) Read Oct 19, 2026.
- ENERGY STAR: Furnaces Key Product Criteria Read Oct 19, 2026.
- eCFR 10 CFR 430.32 Read Oct 19, 2026. Confirm with the source before you rely on it.
- ENERGY STAR: Furnaces Read Oct 19, 2026.
- IRS Energy Efficient Home Improvement Credit Read Oct 19, 2026.
- MPSC Natural Gas Utility Service Areas feature layer (State of Michigan) + City and Township Boundaries layer Read Oct 19, 2026. Our reading of the source, not something it states outright. Confirm before you rely on it.
- Residential Mechanical Permit | City of Grand Rapids Read Oct 19, 2026.
- MCL 445.112 and 445.111 Read Oct 19, 2026.
- ENERGY STAR: Heating & Cooling at Home Read Oct 19, 2026.
- DTE Energy: Natural Gas Emergency Read Oct 19, 2026.
- Consumers Energy: Emergencies Read Oct 19, 2026.
- SEMCO Energy Gas: Gas Leaks and Emergencies Read Oct 19, 2026.
- Michigan Gas Utilities: Emergencies Read Oct 19, 2026.
- DTE Energy: Home Safety (gas) Read Oct 19, 2026.
- HVACMatch: how we estimate costs (editorial policy) Read Oct 19, 2026.