Colorado Furnace & Water Heater Prices Are Going Up – Here’s What to Know

If you own a home in Colorado, especially along the Front Range, you should expect to hear more conversations about rising furnace costs. A new Colorado law goes into effect in January 2026, and while it does not force homeowners to replace working equipment, it does change what can be installed going forward as part of a statewide effort to reduce emissions.

For homeowners planning furnace replacement in Colorado Springs, this change matters. It impacts everything from equipment availability to installation requirements and overall cost. Here’s what’s happening, how it could impact your budget, and where there may still be opportunities to plan ahead. Keep reading this blog from your Colorado Springs HVAC experts at Basset Home Services to learn more!

What Changed Under Colorado’s New HVAC Law?

In 2026, Colorado adopted new emissions standards for gas-fired heating equipment entering the state. That means newly installed gas furnaces and water heaters must meet Ultra-Low NOₓ (nitrogen oxide) emission requirements designed to reduce smog and improve air quality along the Front Range.

A few important points for homeowners:

• You are not required to immediately replace your working furnace or water heater.
• The law only applies when replacement becomes necessary.
• Our team at Basset Home Services, and other contractors in the industry, can still sell existing inventory. 
• Once the older inventory is sold out, your contractor will only be able to install equipment that meets the new standards.

The good news is nothing changes until your furnace fails or is no longer worth repairing. When that time comes, the replacement options and costs will be different.

Why Furnace Replacement Costs Are Expected to Rise

The new Ultra-Low NOₓ system requirements significantly change how furnaces are designed and manufactured. This also affects homeowners planning furnace installation in Colorado Springs, where costs and requirements are changing.

If you need Colorado Springs furnace repair, now is the time to do it. Systems that still have a meaningful lifespan left should stay on top of repairs to extend their usability as long as possible. If your system is already near the end of its lifespan, timing can have a major financial impact.

How Local Colorado Springs Codes Factor In

Alongside the 2026 state law, Colorado Springs also adopted the 2021 IMC. These local requirements already influence how furnaces are installed and add to replacement costs.

Current standards also enforce higher efficiency levels, stricter duct sealing requirements, expanded carbon monoxide detection rules, and updated gas line safety testing. Together, these changes raise the bar for HVAC install in Colorado Springs and make professional installation more important than ever.

What Other Home Systems Are Impacted?

The new law also affects water heaters. Ultra-Low NOₓ standards apply directly to new units entering the state, which affects both water heater install in Colorado Springs and water heater replacement. For now, boilers are currently exempt from this specific legislation.

If you are planning any major HVAC in Colorado Springs, understanding which systems are changing, and when, can help avoid unexpected costs. Give us a call at Basset Home Service to get insights and guidance on next steps and whether or not it’s time for a water heater replacement in Colorado Springs. 

The Upsides of Efficiency and Long-Term Savings

While the upfront costs are higher, newer furnaces offer improved efficiency and cleaner operation. Many homeowners see lower monthly energy bills, and some systems may qualify for rebates or tax incentives depending on timing and eligibility. Over time, these savings can help offset the initial investment, especially for homeowners planning to stay in their homes long-term.

Why Timing Matters If Your Furnace Is Aging

Contractors can still install existing furnace inventory that meets today’s rules. Once that inventory is gone, it will no longer be an option.

If your furnace is already showing signs of age, waiting could mean fewer equipment choices, higher replacement costs, and longer lead times during peak heating season. Homeowners considering furnace replacement in Colorado Springs may benefit from planning before prices climb further.

What Colorado Springs Homeowners Should Do Next

If you’re not sure where your furnace stands, a professional evaluation can help you decide whether repair, maintenance, or replacement makes the most sense.

Our team at Basset Home Services helps homeowners make informed decisions about their HVAC in Colorado Springs, from honest repair recommendations to code-compliant furnace installations. We also work with trusted partners when plumbing support is needed, including coordination with a plumber in Colorado Springs for water heater work.

If you have questions about your furnace or how these changes affect you, give us a call and we’ll guide you through the process.