A few months back I calculated how much money I would save from switching from oil to natural gas to heat my home. I came up with the following calculations:
First thing I did was contact my oil company to get an idea of how much oil I used in a year. That number was about 1,000 gallons. My contract price for the year was $3.59. As such, I paid approximately $3,590 in oil costs for the year!
Next I called the gas company to find out if I am burning 1,000 gallons of oil how much therm will I use of gas. They told me the conversion was a factor of 1.18. So it is estimated that I will use 1,180 gas measured in therms. Next we have to multiple that for the cost of my gas which the natural gas company told me would be about $1.30/therm. This leads me to a total yearly cost of $1,534! WOW.
My final costs were:
- $3,075 for labor
- $2,014 for the new burner (but I receive an $865 visa gift card which I will dutifully apply to my now increased gas bill)
So total net cost of converting from oil to natural gas to heat my home was: $4,224. Since I will be saving $1,534 a year in costs I will recap my costs from converting in a bit over 2 and a half years! That is a win.
There are two outstanding issues which may affect the actual crossover period:
- The savings may even be greater if my brand new burner (but a lower type model) operates more efficiently than the 18 year old one (but better quality) being replaced.
- I now have a hole where the oil came into the house. I have used expanding foam to cover it up but I just found out that is not a long term solution. Zero clue how much this is going to cost to fix.
I was shocked how the costs varied between licensed and insured plumbers! The numbers ranged from $5K to $11K for the same work. I wouldn’t normally take the lowest cost, but he came with a great recommendation from a co-worker. Even if that hole costs me $1,000 I am still way under the other quotes.
All in all while I am pretty pumped to get the oil tank out of my house and the loud old burner, I am more excited to start saving some money!