Heating & Furnace Installation

What the efficiency numbers actually mean

Furnaces are rated by AFUE, which is simply the percentage of fuel that becomes heat inside your house rather than going out the flue. A standard furnace runs around 80% AFUE. A condensing furnace, which pulls a second round of heat out of the exhaust before venting it, runs 90% or higher. Heat pumps get measured twice, SEER2 for cooling and HSPF2 for heating, and the federal minimum for a new split-system heat pump is 14.3 SEER2 and 7.5 HSPF2.

San Diego winters sit in the range where heat pumps are at their most efficient, so the cold-weather objection you may have read about does not apply here the way it does in colder states. If you are replacing both a furnace and an aging air conditioner, a single heat pump is worth pricing against two separate systems, because one piece of equipment then covers both jobs and SDG&E rebates on qualifying heat pumps are among the better utility incentives still running in 2026.

The equipment we install and service

We install and service Carrier, Trane, Lennox, Rheem, Goodman, York, American Standard and Bryant systems, and for ductless and heat pump work we install Mitsubishi Electric, Daikin, LG and Bosch. Carrying multiple lines matters more than it sounds, because it means the recommendation you get is based on what fits your house and your budget rather than on the one brand a company is locked into.

It matters for repairs too. Our trucks stock the parts that actually fail on these systems, which are usually capacitors, contactors, blower motors, ignitors and flame sensors, so most repair calls finish the same day rather than turning into a parts-ordering exercise. One thing worth knowing if your system is more than about fifteen years old: the industry has moved off R-410A refrigerant to lower-emission blends such as R-454B. Older R-22 systems are the ones where a refrigerant leak turns into a replacement conversation, because that refrigerant is no longer produced. We will tell you which side of that line your system sits on before you spend money on it.

Why we measure your house before quoting equipment

The most common mistake in this trade is sizing a replacement by reading the label on the old system. If the original was wrong, and many were, you inherit that mistake for another fifteen years. We run an ACCA Manual J load calculation instead, which works out how much heating and cooling your specific house actually needs based on square footage, insulation, window area and orientation, ceiling height and air leakage. Manual S then matches equipment to that load, and Manual D confirms your existing ductwork can carry the airflow the new system expects.

Oversizing is the failure mode people do not expect. A system that is too large cools quickly, satisfies the thermostat and shuts off before it has run long enough to pull humidity out or distribute evenly. That is short cycling, and it produces hot and cold spots, higher bills and a compressor that wears out early. Bigger is not better. Correct is better.

Rebates and incentives, and what actually changed

Start with the part most contractors have not updated on their websites: the federal 25C energy efficiency tax credit ended on December 31, 2025. If you had qualifying work done in 2025 you can still claim it on that year's return, but there is no federal HVAC tax credit for work done today. Anyone still quoting you a $600 or $2,000 federal credit on a new system is working from old information, and you should ask them what else on their quote is out of date.

What is still available in San Diego is the utility side. SDG&E runs equipment rebates that generally fall in the $200 to $500 range on qualifying high-efficiency systems, with smart thermostat rebates on top of that, and there are additional income-qualified programs for households at or below 80% of area median income. One detail that catches people out: SDG&E requires your local permit to be pulled and closed out before it will release an incentive, so a contractor who skips the permit also costs you the rebate. We pull permits on every installation and handle the close-out. Statewide GoGreen Home financing is also available, separate from our own financing on approved credit. We will confirm which programs you actually qualify for at quote stage rather than promising a number we cannot deliver.

The part homeowners underestimate is the SDG&E bill itself. San Diego electricity rates are among the highest in the country and are billed on time-of-use pricing, so the hours your system runs cost different amounts. An older system running through the expensive late-afternoon window is quietly costing you more than the same system would in most other states, which shortens the payback period on an efficiency upgrade here compared to the national averages you will read elsewhere.