AFUE stands for Annual Fuel Utilization Efficiency. It is a way of determining how efficient a furnace is. When a furnace burns fuel, most of the heat is captured and distributed through the home or building. However, some of the heat also escapes through the vent pipe.
Most furnaces installed in the south have an AFUE rating of around 80%. That means that 80% of the heat generated from the gas burning goes into the home. However, there are now furnaces on the market that offer ratings as high as 98%. Any furnace with a rating of 90% or higher is considered a “condensing furnace”.