Glossary · Heating, cooling & ventilation

AFUE (annual fuel utilization efficiency)

Also called: furnace efficiency · boiler efficiency · AFUE rating

The share of a furnace's or boiler's fuel that ends up as heat in your home over a year; a 95% furnace loses about 5% up the vent.

What it means

AFUE counts losses up the chimney or vent but not heat lost from leaky or uninsulated ducts, which can be large. Mid-efficiency furnaces are about 80%, and condensing furnaces reach 90% or more; older furnaces with standing pilot lights score lower.

Why it matters in an audit

Knowing your furnace's AFUE lets the auditor estimate what a replacement or a heat pump would save, and AFUE minimums decide what can legally be installed.

Typical numbers

Reference values with their sources. Your auditor’s report gives the figure for your own house.

What Value Source
US minimum, non-weatherized gas furnaces (made from Nov 19, 2015) 80% ecfr.gov ↗
US amended standard (December 2023 rule) 95% for furnaces made from Dec 18, 2028; on June 8, 2026 the Supreme Court vacated the appeals ruling that upheld it and sent the case back, the rule stays in effect meanwhile, and DOE is weighing a delay to Jan 1, 2030 contractingbusiness.com ↗

In the United States

Most new US gas furnaces can still be 80% AFUE; as of mid-2026 the 95% rule's future was unsettled.

Sources