Chelan, Manson & Chelan Falls · Lake Chelan

Furnace Replacement in Chelan, WA

Around the lake, the right replacement often depends on what heats the house today. Homes leaving an electric furnace may qualify for a Chelan PUD incentive toward a ducted heat pump, while propane and gas homes can keep their fuel or add a heat pump as dual fuel. Every estimate for a new system is free.

Heating with an electric furnace? See what Chelan PUD may cover ↓

New Carrier air handler installed by Alpine Aire in a Chelan, WA home, December 2025
Installed in Chelan, Dec. 2025 Air handler change-out

Chelan PUD incentives for Chelan and Manson

Leaving an electric furnace? The utility may help pay for it.

Chelan and Manson are in Chelan County, where Chelan PUD runs a heat pump incentive program. The biggest amount goes to homes that trade an electric furnace for a ducted heat pump for the first time.

Apr 1, 2026 Current program year opens
Mar 31, 2027 Current program year ends
Before install Pre-approval must be in place
We file it Alpine Aire handles the pre-approval paperwork
Free Estimate for a new system

Potential utility incentive

$3,300

Electric furnace to ducted heat pump, first-time conversion

For Chelan PUD residential customers. With it, a $15,331–$26,702 ducted heat pump and air handler would come to $12,031–$23,402 for a qualifying electric-furnace home.

Chelan PUD heat pump rebates →

Other situations around the lake

First-time ductless conversion, site-built home $1,600
First-time ductless conversion, manufactured home $2,000
Gas or propane furnace home going all-electric Not eligible
Dual fuel (heat pump + gas furnace) Usually not eligible

Rebates are provided and approved only by Chelan PUD. Amounts and eligibility are subject to change. Ask us about standard heat pump rebates.

Cost and what's included

Installed prices for a Chelan-area replacement.

These are installed prices before any incentive, covering a range of system sizes and equipment tiers. Your estimate pins down the exact number.

Option Installed price Best suited to
Ducted heat pump + air handler $15,331–$26,702 Electric-furnace homes, and anyone who wants one system for heat and summer cooling
Dual fuel: heat pump + gas furnace $15,706–$26,748 Propane or gas homes that want cooling and a furnace kept as backup
Gas, propane or electric furnace alone Free estimate A like-for-like swap. Priced in your home because venting, size and ducts vary.
  • Equipment from Carrier, Lennox, Bosch, Mitsubishi and other leading brands. We're a Carrier Factory Authorized Dealer.
  • The manufacturer's parts warranty (up to 10 years on Carrier) plus Alpine Aire's own 1-year parts and labor warranty.
  • Startup testing by NATE-certified technicians before the job is called finished.

Start with what you have

Your current heat points to the likely replacement.

An electric furnace today

A ducted heat pump uses your existing ducts, adds air conditioning, and is the switch Chelan PUD's largest incentive is built around.

Look at: ducted heat pump

Propane or gas today

Replace the furnace on its own, or pair a heat pump with a new furnace so the heat pump does most of the work and the furnace covers cold snaps.

Look at: new furnace or dual fuel

Wall heaters, no ducts

Ductless mini-splits heat and cool room by room without adding ductwork, which suits many cabins and older lake homes.

Look at: ductless systems

Is your air conditioner on R-22?

We no longer use R-22. If your AC still runs on it, replacing the furnace and the cooling together can spare you a second project a few summers from now.

Living at the lake

Lake Chelan homes ask a lot of one system.

Summers on the lake run hot and winters bring real cold, so many owners want heating and cooling from the same replacement. Plenty of houses here are second homes, and some sit empty for weeks at a time in winter.

What we talk through at a Chelan estimate

  • Whether you want summer cooling from the same system
  • A thermostat you can check from your phone when you're away
  • Your propane delivery schedule, if you heat with propane
  • Space in the closet, attic or crawlspace for the new equipment

Most interested in the heat pump route? Our Chelan heat pump page goes deeper on systems and sizing for the lake.

How it works

From the first call to a warm house in Chelan.

  1. Free estimate. We visit, look at your furnace, ducts and electrical, and walk you through your options with prices.
  2. Chelan PUD pre-approval, when it applies. For an electric-furnace conversion, we file the paperwork and wait for approval before scheduling.
  3. Install day. Our crew takes out the old furnace and installs and connects the new system.
  4. Startup and handoff. We test a full heating cycle, set the thermostat and show you the filter.

What we take care of

  • The estimate and written price
  • Chelan PUD pre-approval paperwork
  • Equipment, installation and startup

What helps from you

  • Your Chelan PUD account details
  • How you heat today, and whether you want cooling
  • Access to the furnace, panel and outdoor spot

Recent local work

A recent replacement near Lake Chelan.

4.8

4.8-star average across 588 Google reviews as of Oct. 20, 2026

Read reviews on Google →

Whole new Carrier air handler installed by Alpine Aire in Chelan, WA, December 2025

An air handler change-out in Chelan

Completed
December 2025
What came out
The home's old air handler
What went in
A new Carrier air handler

In December 2025 our crew replaced the air handler in this Chelan home with a new Carrier unit. This was an air handler change-out rather than a gas furnace: the air handler is the indoor unit that moves warm air through the ducts.

From our Google reviews

How customers describe our install crews.

GOOGLE REVIEW · ★★★★★

“Dan, John, Tony, Pablo, Dave and Max were all very professional and helpful and hardworking. Thanks for the great job installing the new heat pumps...”
Tonia H. · December 2024

GOOGLE REVIEW · ★★★★★

“Excellent service - on time, efficient, great clean up and able to come up with installation solutions if unexpected install challenges arose.”
Linda P. · September 2024

GOOGLE REVIEW · ★★★★★

“Alpine Aire Heating and Cooling deliver excellent service and products!”
Ken R. · April 2024

Chelan furnace replacement FAQ

What Chelan and Manson homeowners ask before replacing.

How much does it cost to replace a furnace in Chelan?

A ducted heat pump with an air handler runs $15,331 to $26,702 installed, and a dual fuel system runs $15,706 to $26,748, before any incentive. A gas, propane or electric furnace on its own is priced at a free in-home estimate.

Does Chelan PUD help pay for a new furnace?

Chelan PUD's incentives are for heat pumps, not furnaces. The main one is for homes converting from an electric furnace to a ducted heat pump for the first time. Homes heated with gas or propane that go all-electric, and most dual fuel systems, don't qualify. Chelan PUD makes the final call.

Will you handle the Chelan PUD paperwork?

Yes. Alpine Aire files the pre-approval with Chelan PUD and schedules the install once it's approved.

Is a heat pump enough for a Chelan winter?

A ducted heat pump comes with backup heat in the air handler for the coldest nights. If you have propane or gas and want a fuel-fired backup instead, a dual fuel system keeps a furnace in the mix.

Do you replace furnaces in Manson and Chelan Falls?

Yes. We serve Chelan, Manson, Chelan Falls and South Chelan, and replacement estimates are free in every one of them.

What brands and warranty do you offer?

We install Carrier, Lennox, Bosch, Mitsubishi and other leading brands, and we're a Carrier Factory Authorized Dealer. New systems carry the manufacturer's parts warranty, up to 10 years on Carrier, plus our own 1-year parts and labor warranty.

Can I get a price without a visit?

For ducted heat pumps and dual fuel systems, yes. The instant price tool at alpineaire.net/shop gives you a starting number. Furnace-only replacements are priced at the free estimate.

Furnace out right now? A repair visit in Chelan or Manson has a $149 dispatch fee during office hours, and our after-hours emergency service covers the lake. Call (509) 436-1178.

Free estimate around the lake

Start your Chelan furnace replacement.

Share a few details about your home and how it heats now. We'll call to book your free estimate, and if Chelan PUD's incentive could apply, we'll explain the pre-approval step.

Office hours Monday–Friday, 8 a.m.–5 p.m.

Tell us about your project