Outdoor wood furnaces, also known as outdoor boilers or hydronic heaters, have become an increasingly popular way to heat homes and buildings in recent years. As energy costs continue to rise, many homeowners are turning to wood as a cheaper, renewable heating fuel. But before investing in an outdoor wood furnace, it’s important to understand the costs involved so you can determine if it’s the right heating solution for your needs and budget. In this comprehensive guide, we’ll examine the key factors that influence the cost of outdoor wood furnaces and provide price ranges so you know what to expect.
What Are Outdoor Wood Furnaces?
Outdoor wood furnaces are fully enclosed units situated outside of a home or building that burn wood to heat water. The hot water is circulated through insulated underground pipes to a heat exchanger inside the home, where fans blow the heat into the living spaces.
Unlike traditional indoor wood stoves, outdoor wood furnaces have insulated fireboxes that allow them to burn wood efficiently for extended periods, even overnight. This means they don’t need to be constantly tended and fed like indoor wood stoves. The furnaces are thermostatically controlled, only burning more wood when extra heat is required.
Outdoor wood furnaces have several advantages over other heating systems:
- Lower heating costs – Wood is much cheaper than propane or heating oil. And because they burn wood so efficiently, outdoor furnaces use less fuel than indoor wood stoves.
- Renewable fuel source – Wood is a renewable resource that can be sustainably harvested when properly managed. This makes wood a greener heating choice than fossil fuels.
- Self-sufficiency – Harvesting and processing your own firewood offers independence from fluctuating energy prices.
- Constant heat – Outdoor furnaces provide consistent heat 24/7 with little maintenance compared to indoor wood stoves.
- Ambiance – Wood heat provides cozy radiant warmth and a delightful wood-burning smell.
On the downside, outdoor wood furnaces do require work to process firewood and remove ashes. And they must be situated at least 100 feet from any residence to prevent smoke exposure.
Now that you understand the benefits of outdoor wood furnaces, let’s look at what impacts their cost.
Factors That Influence the Cost of Outdoor Wood Furnaces
Several key factors determine the cost of purchasing and installing an outdoor wood furnace system:
1. Furnace Size and Heating Capacity
Outdoor wood furnaces are available in a range of sizes with different BTU (British Thermal Unit) heating capacities. Small furnaces may have heating capacities of 100,000 to 150,000 BTUs. Medium-sized models range from 150,000 to 300,000 BTUs. Large furnaces over 300,000 BTUs can heat very big buildings.
In general, the larger the BTU heating output, the higher the furnace price. Make sure to size your furnace appropriately for the space you need to heat. An oversized unit will burn more wood and cost you more in the long run, while an undersized furnace won’t heat your home adequately.
2. Construction Quality
Outdoor wood furnaces are crafted from heavy steel, with quality models made from heat-resistant stainless steel. Higher quality materials make the units more durable, safer, and longer-lasting. Premium quality construction commands a higher price tag but pays off long-term.
3. Efficiency Rating
Look for a furnace with a high combustion efficiency rating (percent of heat produced from the wood fuel). Models with ratings in the high 80s and above offer the best efficiency. Higher efficiency means getting more heat from your wood supply.
4. Warranty Coverage
The warranty provides an indication of the manufacturer’s confidence in their product. Better outdoor wood furnaces will come with longer warranties up to limited lifetime periods. An extended warranty brings peace of mind in case any defects arise.
5. Brand Reputation and Reviews
Research brands to compare reputation and customer satisfaction. Reputable brands known for quality products and service may have higher price points. But they offer the assurance of reliable construction and responsive customer support if any issues surface.
6. Special Features
Extra convenience and performance features can enhance usability but add cost. These may include programmable thermostats, automatic ignition, heat exchangers, emissions controls, ash cleanout systems, and options for dual fuel capabilities. Consider if the extra functionality is worth the added expense for your needs.
7. Professional Installation Costs
Unless you’re highly skilled at DIY installations, plan to hire a professional for the job. Outdoor wood furnace installation involves running underground water lines, integrating the unit with existing HVAC systems, obtaining permits, and more. Complexity equals higher labor costs.
Now that you know what impacts the price, let’s look at typical price ranges.
Typical Price Ranges for Outdoor Wood Furnaces
Outdoor wood furnace units alone can range in cost from approximately:
- $3,000 to $6,000 for entry-level and mid-range models
- $6,000 to $12,000+ for high-end, premium brands
But that’s not the total project cost. Here are the typical price ranges for full outdoor wood furnace installations:
Entry-level outdoor wood furnace package:
- Furnace unit: $3,000 – $4,000
- Basic installation: $4,000 – $6,000
- Total cost: $7,000 – $10,000
This is for a basic medium-sized furnace with professional installation of water lines, heat exchanger and connections.
Mid-range outdoor wood furnace package:
- Furnace unit: $4,000 – $8,000
- Standard installation: $6,000 – $8,000
- Total cost: $10,000 – $16,000
This is a medium-sized, reasonably efficient model with typical installation needs.
High-end outdoor wood furnace package:
- Furnace unit: $8,000 – $12,000+
- Complex installation: $8,000 – $12,000+
- Total cost: $16,000 – $24,000+
For a premium large capacity, high efficiency furnace with involved custom installation requirements.
As you can see, installation often doubles the total cost of the project. Working with an experienced professional contractor is advisable for proper setup and safety. Be sure to get multiple quotes to find the best value installer.
Keep reading for additional factors that add to the cost.
Additional Potential Costs
Beyond the furnace and base installation, there are extras that may be required, adding to your total project investment:
- Site work – Additional costs if ground preparation is needed where the unit will be placed.
- Permits – Your contractor will obtain needed permits, which may involve permit fees.
- Electrical work – Upgrades if more power is required to run the unit and integrated system.
- HVAC modifications – Alterations to existing ductwork or systems for integration.
- Extra piping – If the building is far from the furnace location, more underground piping equals more labor and materials.
- Holding tank – A water storage tank allows hot water to continue circulating if furnace runs out of wood.
- Accessories – Items like ash cleanout tools, moisture meters for firewood, insulation blankets, thermostats, and chimney cleaning tools.
- Taxes – Sales tax will need to be added to the furnace purchase and installation labor.
- Insurance – Insure the furnace unit itself after installation.
- Shipping – Potential delivery fee if the unit is not locally available.
If any of these extra items are required for your specific installation, be sure to get an itemized quote from contractors outlining the additional costs.
Understanding all the potential costs allows you to budget realistically and determine if the investment in an outdoor wood furnace makes sense for your scenario.
Cost to Operate an Outdoor Wood Furnace
While the upfront installation cost is significant, one of the perks of a wood furnace is very low annual operating costs compared to other heating fuels. The biggest operating expense is obtaining seasoned firewood. Here’s an overview:
- Firewood – About 8-12 full cords are needed annually for a medium sized unit for average heating needs. At $200/cord, that’s $1600 – $2400 each year for wood.
- Electricity – Just $100 to $300 annually for running pumps and fans. New efficient models use minimal power.
- Maintenance – Budget around $250 annually for chimney cleaning and minor servicing needs.
- Ash disposal – About $100 per year for ash removal, if contracting out. Otherwise it just requires some labor.
In total, expect to spend $2000 to $3000 annually for typical operation costs for a medium sized furnace. Compare this to annual costs for heating oil ($3000+), propane ($2500+), or natural gas ($1200+).
The amount of usable heat you get from a nicely aged and dried cord of dense hardwood will have much greater BTU value than the equivalent $500 of fossil fuels. Just 3-4 cords provides the same heat as 1000 gallons of propane or 100 barrels of heating oil.
Over 10-20 years, the lower ongoing costs for wood heat will more than make up for the higher upfront installation costs of the outdoor furnace. And opting for an efficient EPA-certified clean burning model minimizes environmental impact.
DIY Installation to Reduce Costs
If you have prior HVAC, electrical, and plumbing experience, a DIY installation can dramatically lower costs, saving potentially $5000+ on labor. But make sure you thoroughly research proper installation procedures and comply with all building codes. Getting permits and inspections is essential for safety and insurance validity.
Critical steps for DIY installs include:
- Properly sizing and situating the furnace unit to code
- Digging trenches for underground piping to the appropriate frost line depth
- Installing and insulating water lines securely
- Integrating furnace piping with existing HVAC system
- Adding necessary vents, drains, valves, filters, expansion tanks
- Running new electrical lines and hookups if required
Without professional experience, DIY installations are not advised. The piping, wiring, and integration intricacies make hiring an expert contractor strongly recommended. But if up for the challenge, being hands-on can save substantially on labor.
Finding the Best Deals on Installation
For those hiring a contractor, here are tips to get the best value:
- Get quotes from at least 3-4 installers to compare.
- Ask for complete itemized quotes outlining all materials, labor, fees.
- See if the purchase price of the furnace unit itself can be negotiated – contractors often get wholesale rates.
- Offer to assist with basic tasks during installation to reduce labor hours.
- Schedule the install during a contractor’s slow season for better rates.
- Ask your local utility companies if they offer rebates or subsidies on high efficiency wood furnaces to reduce the purchase price.
- Consider financing options to pay for the project over time, rather than full payment upfront.
With smart negotiating and cost-saving measures, you can find an affordable installation option for your budget.
Is an Outdoor Wood Furnace Worth the Investment?
Given the high upfront price, is an outdoor wood furnace ultimately worth investing in compared to other heating systems? Here are factors to help determine whether the cost is justifiable for your situation:
It’s worth the investment if:
- You have ready access to low-cost or free firewood.
- You don’t mind the labor of collecting, chopping, stacking, and loading wood.
- You have patience for a long payback period of 10-20 years for cost savings to balance out the initial purchase costs.
- You prefer to be self-reliant and energy independent, and don’t mind the routine maintenance.
- You want to save substantially on annual heating bills.
- You appreciate the ambiance and radiant warmth of wood heat.
- You have the space to accommodate the furnace safely away from buildings.
The cost may be prohibitive if:
- You don’t have a reliable wood source and have to pay top dollar for cords of firewood.
- The hassle of handling firewood and ashes seems unpleasant.
- You expect a faster payback period under 10 years.
- You do not have adequate outdoor space for proper clearance between buildings.
- You prefer more automation and less maintenance hassle.
- You are not experienced with hydronic heating systems.
- Upfront costs exceed $20,000 in your area for a full install.
Consider your individual situation carefully in relation to the typical costs for purchasing and operating an outdoor wood furnace. If the long-term savings appeal to you and you have affordable access to firewood, the investment can certainly pay for itself in the long run. But if the logistics of handling wood heat seems daunting, or the upfront cost exceeds your budget, a wood furnace may not be the optimal heating solution for you. Seek advice from unbiased heating contractors to identify the best system for your needs and budget.
Outdoor Wood Furnace Costs: The Bottom Line
- Full installation costs range from $7,000 on the low end up to $24,000+ for premium products and custom setups. Evaluate multiple itemized quotes.
- While expensive upfront, costs are recouped long-term from low annual firewood expenses of around $2000-$3000 for most units.
- Carefully size the furnace to your heating requirements – oversizing wastes wood while undersizing leaves you cold.
- Research reputable brands known for quality and safety. Higher initial outlay brings long-term value.
- Hiring a professional for installation is highly advisable for proper function and safety assurance.
- DIY installation can save on labor but is only feasible for those with related trade skills.
- Consider financing options to make the upfront investment more manageable.
With steep initial purchase and installation pricing, outdoor wood furnaces represent a major investment. But for homeowners committed to lowering energy costs over the long haul through a renewable fuel source, the substantial long-term savings can justify the higher short-term costs. Consider both budget and lifestyle factors to decide if paying the price for an outdoor wood furnace is the right choice for comfortably and economically heating your property.