Old Gilroy, homes before 1960
Small utility closets, older venting and original ducts, if there are any. Fitting a modern furnace often means new venting and some duct work, and it helps to know that before you compare bids.
Furnace installation in Gilroy, CA
Gilroy winters are mild, but the nights get cold enough that a furnace failing in January is a real problem, and the summers here run hotter than most of the Bay Area. A new gas furnace in Gilroy typically costs about $5,100 to $7,600 installed for common 60,000 to 100,000 BTU sizes.
We size it for your home, handle the permit and explain the Bay Area rule on gas furnaces, so you can choose with all the facts. Emergency service is available 24/7.
The price in plain numbers
Average installed prices in Gilroy from our pricing guide are about $5,100 for a 60,000 BTU furnace, $6,300 for 80,000 BTU and $7,600 for 100,000 BTU. Higher efficiency models, venting changes and duct work add to the total.
See the furnace installation pricing guide.
| Furnace size | Typical home size | Average installed |
|---|---|---|
| 60,000 BTU | Smaller homes and condos | $5,100 |
| 80,000 BTU | Most single story homes | $6,300 |
| 100,000 BTU | Larger and two story homes | $7,600 |
Examples of our work
Three kinds of Gilroy homes, three kinds of furnace jobs
Ranch style homes
Single story houses from the farming years, often with the furnace in the attic or garage and a long duct run. We check access, support and the condensate drain before we quote.
Tract homes from the 1990s onward
Furnaces and air conditioners from the same era, now 15 to 30 years old. Replacing both at once is worth pricing, since the indoor coil and the furnace work as a pair.
The Bay Area rule on new gas furnaces
Gilroy is in Santa Clara County, inside the Bay Area Air District. The district adopted a zero NOx standard for new gas central furnaces starting January 1, 2029.
It does not require you to remove a working furnace, and the products that meet it today are electric, such as heat pumps. The district said it would consider changes in 2026, so confirm the date with the Air District when you replace.
Until then, a high efficiency gas furnace remains a sensible choice for many Gilroy homes, and we will tell you plainly when a heat pump would serve you better. See heat pump installation in Gilroy.
Choosing an efficiency level for a mild climate
Furnace efficiency is rated in AFUE, the share of fuel that becomes heat. Because Gilroy winters are short, the top tier takes a long time to pay for itself.
A mid efficiency condensing furnace is often the best value, and a modulating model earns its price in comfort and quiet more than in gas savings.
| AFUE rating | Tier | Added to base price |
|---|---|---|
| 80 percent | Standard efficiency | Base price |
| 90 to 92 percent | Mid efficiency condensing | Add $400 to $900 |
| 95 to 96 percent | High efficiency | Add $900 to $1,800 |
| 97 to 98 percent or more | Premium modulating | Add $2,200 to $4,000 |
What a good furnace installation includes
- A load calculation that sizes the furnace to your home, not to the old unit.
- Venting that matches the furnace type, with a sloped condensate line for condensing models.
- A gas line pressure test and a leak check at every connection.
- Return air and duct connections checked, since a new furnace cannot fix a starved return.
- A carbon monoxide detector check on every level.
- The permit and a final combustion check before we leave.
Rebates and incentives
The federal tax credit ended after 2025, and gas furnaces rarely qualify for rebates. If you are considering going electric, Silicon Valley Clean Energy and the Bay Area Regional Energy Network have offered home electrification rebates, and TECH Clean California offers contractor applied heat pump rebates.
These programs change or close, so check BayREN and SVCE, and see our California rebates and rules guide.
How a furnace installation works
- A walk through. We see the space, the ducts and the electrical panel.
- A written plan. Size, model, efficiency and price, with no work started yet.
- Permit and scheduling. We handle the paperwork and tell you what to expect on the day.
- Installation. Equipment, lines, electrical and drain, then startup checks.
- Handoff. We show you the thermostat, the filter and what to watch for.
What moves the price of a Gilroy furnace job
- Moving from an 80 percent furnace to a condensing model, which needs a PVC vent and a drain.
- Attic or garage installs that need a platform, light and outlet to meet code.
- Plenums and flexible ducts that have deteriorated and should not be reused.
- A gas shutoff or line that no longer meets current requirements.
- A new thermostat, or wiring that has aged out.
None of these are surprises if you hear them in the estimate. If a quote does not mention them, ask whether they are included.
Questions worth asking any Gilroy contractor
- How did you size the furnace, and what did you measure in my house?
- Does the price include the permit, the vent and the drain?
- What will you do about my ducts if they leak or are undersized?
- Does this model meet the Bay Area rule that starts in 2029, and does it matter for my situation?
- What does the warranty cover, in writing, and who handles a claim?
Where we serve
We serve Gilroy, Morgan Hill, San Martin and Hollister. See furnace repair in Gilroy, AC installation in Gilroy and HVAC in Gilroy.
Brands we service
We repair and install all major brands. Each brand page lists the models we install, the problems we see most and what the warranty typically covers. See how we match a technician to your brand.
Gilroy, CA on the map
Common questions
How much does a new furnace cost in Gilroy, CA?
Average installed prices in our guide are about $5,100 for 60,000 BTU, $6,300 for 80,000 BTU and $7,600 for 100,000 BTU.
Can I still install a gas furnace in Gilroy?
Yes. The Bay Area rule for new gas furnaces starts January 1, 2029, and the district said it would consider changes in 2026. Check the Air District for the current date.
Do you install furnaces in Morgan Hill?
Yes. We serve Morgan Hill and San Martin along with Gilroy.
Is a high efficiency furnace worth it here?
Often a mid efficiency one is the best value, since winters are mild and the furnace runs fewer hours.
Do I need a permit?
In most cases yes. We handle it.
Talk to a person
Call any hour for emergency service, or reach us during business hours for a visit or a quote.