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Boiler efficiency is mainly depended on the amount of losses in the system. In high capacity pulverized coal fired boilers the total losses account to about 12 to 14%. Roughly 50% of the losses are governed by fuel properties like hydrogen in fuel, moisture in fuel and ambient air conditions. The other 50% losses are carbon loss and dry gas loss.

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When shopping for high-efficiency furnaces and boilers, look for the ENERGY STAR® label. If you live in a cold climate, it usually makes sense to invest in the highest-efficiency system. In milder climates with lower annual heating costs, the extra investment required to go from 80% to 90% to 95% efficiency may be hard to justify.

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