Energy-Efficient Natural Gas Furnace

Get up to a $300 Rebate

If the furnace in your home is more than 15 years old, it’s time to consider replacing it. Old furnaces, including forced air, wall, room and floor furnaces, can have energy wasting standing pilot lights. Newer models with electronic ignition systems have an Annual Fuel Utilization Efficiency (AFUE) of 94% or higher and can run up to 15% more efficiently than standard models. Not only that, you can get up to a $300 rebate on the purchase and installation of a qualified furnace.

How to Apply

New Furnaces Cost Less

  • Save up to $1,615 over the product’s estimated 18 year lifetime*
  • Save up to 66 therms per year*
  • Help reduce greenhouse gas emissions

*Savings based on installation of a more efficient furnace (94% AFUE) to replace a less efficient unit (70% AFUE) of the same size.

How to Get Your Rebate

  • Customer must have natural gas distributed by PG&E to the installation address.
  • The central natural gas forced-air furnace must have an Annual Fuel Utilization Efficiency (AFUE) rating of:
    • AFUE ≥ 94% < 96% - $150 rebate
    • AFUE ≥ 96% - $250 rebate
  • Residential single family or multifamily customers who also have electricity distributed by PG&E to the installation address in climate zones 11, 12, or 13 can apply for a rebate when the central natural gas forced-air furnace has a built–in variable speed motor (VSM).
    • AFUE ≥ 94% < 96% with Built-In VSM - $200 rebate
    • AFUE ≥ 96% with Built-In VSM - $300 rebate

See a list of products and find your climate zone. Be sure your model meets or exceeds the requirements above and your home is located in a qualifying climate zone prior to applying for a rebate.

PG&E's 2010-2012 rebate program is available for qualifying products purchased and installed between January 1, 2010 and December 31, 2012. Payment of rebates is not guaranteed as funds are limited, and amounts and offerings are subject to change. All rebate program terms and conditions apply.

How to Apply:
Sign Up OnlineSign up for My Energy and apply online with eRebates
Mail in Your ApplicationDownload our HVAC Catalog to determine eligibility, then download and print a Rebate Application (PDF, 462 KB)
For More InformationContact the Smarter Energy Line at 1-800-933-9555 or e-mail

Buyer's Tips

Contact a licensed C-20 contractor to get an installation proposal for the qualifying products. You can also contact the Contractors State License Board (CSLB) at 1-800-321-CSLB or go to for more information.

Still Want More?

Check out the following links for even more energy saving information: