Colorado HVAC companies are preparing for major updates to furnace installation standards beginning in 2026. These changes focus on cleaner-burning heating equipment, improved air quality, and a statewide shift toward more energy-efficient homes.

At Pendleton Heating & Cooling, we want Colorado Springs homeowners to have clear, honest information, without pressure or confusion. Here’s what’s changing and how it may affect your next furnace replacement.

What’s Changing in 2026? A Simple Breakdown

Colorado’s 2026 updates impact furnace replacements in three primary ways:

1. Gas Furnaces Must Be Low NOx Models

Starting in 2026, all newly installed gas furnaces in Colorado must meet updated Low NOx (low nitrogen oxide) emission standards.

Low NOx furnaces:

• Burn cleaner

• Release fewer pollutants

• Reduce ozone and smog

• Support Colorado’s air-quality goals

This does not eliminate gas furnaces, it simply raises the standard for how cleanly they must operate.

2. All Newly Installed Furnaces Must Be at Least 95% AFUE

As part of Colorado’s efficiency and emissions overhaul, gas furnaces installed after January 1, 2026 must be a minimum of 95% AFUE.

This means:

• 80% furnaces can no longer be installed, though there is a phase out period (keep reading)

• All new furnaces will be high-efficiency, sealed-combustion units

• Homes with older venting systems will require modifications during replacement as high efficiency furnaces require PVC venting.

• This requirement is part of statewide energy reforms and is tied to legislation such as House Bill 23-1162:
  🔗 https://leg.colorado.gov/bills/hb23-1162

3. Homes Must Be “Electric-Ready” for Future HVAC Technology

Under House Bill 23-1161, heating systems replaced after 2026 must be able to support future electrification.

This does not force homeowners to switch to electric heat.
Instead, it ensures the home is prepared for future upgrades, such as:

• Space for future electrical wiring

• A dedicated circuit in older homes

• Panel capacity for potential heat pump integration

• Safe placement and clearances for hybrid systems

For many homes, this requirement has little or no impact. Older homes may require minor updates.

Phase - Out Period

The good news is that Colorado is not switching overnight. The transition to Low NOx and 95% AFUE furnaces will happen through a phased process. Manufacturers will begin ending production of non-compliant models in late 2025, and distributors will be allowed to sell their remaining inventory into 2026 until it is exhausted. During this sell-through period, contractors may still install these older models as long as the equipment was purchased before the cutoff and falls within the permitted timeline. Once distributor inventory is gone, only fully compliant furnaces can be installed moving forward. This gradual phase-out helps prevent sudden, forced upgrades—but homeowners should expect supply to tighten quickly as inventory runs out.

How These Changes May Affect Furnace Replacement Costs

Not all homes will be impacted, but after 2026 some homeowners may experience:

• Higher equipment cost due to Low NOx and 95% efficiency requirements

• Limited inventory during the phase-out

• Venting changes needed for 95% AFUE furnaces

• Potential electrical modifications for older homes

• Longer scheduling times during the transition period

Planning ahead can help avoid higher costs or delays.

Do You Need to Replace Your Furnace Before 2026?

Not necessarily. The timing really depends on your specific situation. The age of your furnace plays a big role, since units that are 15–20 years old or more are generally nearing the end of their lifespan. Reliability is another important factor—frequent repairs, inconsistent heating, or unusual noises often signal that a furnace may not make it through another season. Your home’s layout and venting also matter because older venting systems may need modifications when switching to a 95% AFUE model after 2026. And finally, your long-term plans come into play; if you intend to stay in your home for years to come, upgrading before the new standards fully take effect may help you avoid added costs or delays.

If your furnace is still running well and has life left in it, there’s no pressure to replace it early. But if it’s aging, unreliable, or showing signs of decline, replacing it before the new requirements roll out may offer financial and practical advantages.

How Pendleton Heating & Cooling Helps You Navigate These Changes

Our approach is simple and homeowner-focused:

• No-pressure furnace evaluations

• Clear, written estimates outlining any required upgrades

• Colorado-compliant Low NOx and 95% AFUE systems

• Expert guidance on venting, electrical needs, and code changes

• Local experience with PPRBD and statewide HVAC requirements

• Options tailored to your comfort, budget, and long-term plans

Our goal is to help you feel informed, not overwhelmed. We want to empower you to help you make a confident decision for you and your home.

Want to Know How the 2026 Changes Affect Your Home?

If you'd like an honest look at your furnace’s condition or want to plan ahead before the transition, Pendleton Heating & Cooling is here for you. Reach via phone call, text, website or social media and we will help any way we can!