What You’ll Learn
How much does an oil-to-gas furnace conversion cost, and what steps are required?
Most conversions fall between $5,000 and $15,000, depending on the type of furnace, gas lines, propane tank, and oil tank removal. Below, you’ll see each cost component, when propane makes sense vs. natural gas, and how to choose a qualified installer.
In this post:
There’s a slippery spot on your basement floor.
Your oil tank is leaking again.
Instead of getting it repaired (again) and dealing with the inevitable leak in a few years, you’re debating doing away with it completely.
But what will converting from an oil to a gas furnace cost you?
In this cost guide, we will break down the various expenses associated with replacing an oil furnace with a gas furnace so you can make an informed decision for your Chester County home.
Why Convert from Oil to Gas?
Before diving into the costs, it’s essential to understand the benefits of converting from an oil furnace to a gas furnace:
- Cost Savings: Gas is more cost-effective than oil, leading to lower monthly heating bills.
- Efficiency: Gas furnaces are typically more efficient, providing more heat with less energy.
- Convenience: Gas furnaces offer a consistent fuel supply without the need for regular oil deliveries.
- Environmental Impact: Gas burns cleaner than oil, resulting in fewer emissions.
Propane vs. Natural Gas
There are a few key differences between propane and natural gas.
Natural gas is a non-renewable fuel source we extract from underground. In nature, it occurs as a mixture of methane, butane, propane, and other gases. However, methane makes up the largest part of natural gas.
Propane is a by-product of natural gas processing and crude oil refining. We get it by processing natural gas or refining petroleum, and it’s also called liquefied petroleum gas, or LPG. Like natural gas, propane is colorless and odorless.
Benefits of Propane
- Portability and Storage: Propane is a portable fuel stored in tanks on the property. The tank can be strategically located to meet safety regulations and aesthetic preferences.
- Availability: Propane is widely available, making it a practical choice for homes located in areas without access to a natural gas line. The option to have a dedicated propane tank ensures a reliable fuel supply during power outages.
- Fuel Efficiency: Propane burns hot and cleanly, providing a reliable and consistent source of energy to power your home during outages.
- Storage Longevity: Propane has an extended shelf life, meaning it can be stored for long periods without deterioration.
Benefits of Natural Gas
- Cost-Effective: Natural gas is more cost-effective than propane once the connection has been established. The pricing structure for natural gas is typically stable, and you avoid the costs associated with purchasing and maintaining propane tanks.
- Convenience: The convenience of not having to manage fuel storage or refilling propane tanks is a significant advantage. Natural gas users can rely on the existing utility connection without the need for on-site fuel storage.
The Choice
When it comes to choosing between natural gas and propane for your gas furnace, it’s best to go with what your home is already equipped with.
- If you already have natural gas for your water heater, fireplace, stove, etc, then it’s best to just extend the line to fuel your new furnace.
- If you don’t have natural gas lines around your home and use propane, it’s better to get a propane tank installed on your property (above or below ground) as a fuel source.
Cost Breakdown of Oil-to-Gas Furnace Conversion
1. Replacing the Unit
The first significant expense in converting from an oil furnace to a gas furnace is the cost of the new unit. The price can vary based on several factors:
Furnace Type and Efficiency
The cost of a new gas furnace ranges from $2,500 to $7,500, depending on the brand, model, and efficiency rating.
High-efficiency models, which have an Annual Fuel Utilization Efficiency (AFUE) rating of 90% or above, will be more expensive upfront but offer long-term savings on energy bills.
Installation Fees
Professional installation is crucial for ensuring the furnace operates safely and efficiently.
Installation fees can range from $1,500 to $3,000, depending on the complexity of the installation and any necessary modifications to existing ductwork.
2. Running New Gas Lines
Whether you are installing a propane or natural gas furnace, you’ll need to already have or install gas lines.
The cost of running new gas lines can vary significantly based on the distance from the gas meter to the furnace location and any obstacles that may complicate the installation process:
Gas Line Installation
Installing new gas lines typically costs between $500 and $2,000.
If the gas line must be extended from the street to your home, the cost may be higher, ranging from $2,000 to $5,000.
In Chester County and the surrounding areas, local utilities often offer incentives for natural gas conversion, which can help offset some of these costs.
3. Installing a Propane Tank
For those opting for propane instead of natural gas, installing a propane tank is an essential step in the conversion process. Here’s what you need to consider:
Tank Purchase or Rental
Propane tanks can be purchased outright or rented from a propane supplier.
The cost of purchasing a tank ranges from $400 to $2,000, depending on the size and whether it’s above-ground or underground.
Rental fees can vary based on the supplier and tank size, typically costing between $50 and $200 annually.
Installation Costs
Installing a propane tank involves additional expenses, including labor, permits, and safety measures.
Above-ground tanks are generally less expensive to install, with costs ranging from $500 to $1,000.
Underground tanks require excavation, which can increase installation costs from $1,500 to $3,000.
Regulatory Compliance
Installation must comply with local building codes and safety regulations, which may require additional inspections or modifications to ensure safety.
4. Removing the Oil Tank
Once you’ve switched to a gas furnace, the oil tank will no longer be necessary. Removing the oil tank involves several steps and costs:
Tank Removal
The cost of removing an oil tank can range from $500 to $3,000, depending on the tank’s size and location (above ground or underground).
Underground tanks typically cost more to remove due to excavation requirements.
If you are converting to a gas furnace in the winter, underground tanks will be removed in April or May when the ground thaws.
Local regulations in Chester County require proper disposal of oil tanks, and failing to comply can result in fines.
Disposal Fees
Proper disposal of the tank and any remaining oil may incur additional fees, ranging from $200 to $500.
5. Additional Costs
There are a few additional costs to consider when converting from oil to gas:
Permits and Inspections
Local building codes often require permits and inspections for furnace installations and gas line work.
Permit fees can range from $50 to $300, and inspection fees may be similar.
Chimney Liner
If your existing chimney is not compatible with a gas furnace, you may need to install a chimney liner, which can cost between $500 and $2,000.
Ductwork Modifications
If your existing ductwork needs modifications to accommodate the new furnace, this can add $500 to $1,500 to the overall cost.
Total Estimated Costs
Most oil-to-gas conversions land between $5,000 and $15,000, driven by equipment choice, line/tank work, oil tank removal, and local labor rates.
The exact cost will depend on various factors, including your home’s specific requirements, the type of gas furnace you choose, and local labor rates.
Choosing Your Conversion Partner
Converting from an oil furnace to a gas or propane furnace is a significant investment that can lead to long-term savings and environmental benefits.
But you need the right partner to have your back and guarantee a quick, efficient, and professionally-backed service.
The service should include:
- Evaluating your home’s heating needs and determining the most efficient furnace and fuel type for your situation.
- Handling the entire installation process, including gas line installation and any necessary modifications to your home.
- Providing safe and efficient oil tank removal and disposal services, ensuring compliance with all local regulations.
- Offering maintenance and support services to keep your new furnace running smoothly.
Choosing a Local Partner: Kauffman Gas
We’ll have your back. We’ll get the job done right.
Don’t believe us?
Hear it from 400+ of your neighbors in Chester County and beyond by reading our Google Reviews.
Our team of experts is here to provide guidance, answer your questions, and ensure a smooth transition to a more efficient and cost-effective heating solution.
If you have any questions or are ready to begin the conversion process, contact Kauffman Gas today.
FAQ
Why should I consider converting from an oil furnace to a gas or propane furnace?
- Gas and propane are generally more affordable than oil.
- Modern gas and propane furnaces are more efficient, lowering heating bills.
- Cleaner burning with fewer emissions reduces carbon footprint.
- Consistent fuel supply without the need for regular oil deliveries.
How long does the conversion process from oil to gas typically take?
The conversion process can vary depending on the complexity of the project and the specific requirements of your home.
On average, it may take anywhere from a few days to a week.
This timeline includes:
- removing the old oil tank
- installing the new gas furnace
- running new gas lines
- making any necessary modifications to your home
Are there any incentives or rebates available for converting from oil to gas or propane?
In many areas, there are incentives and rebates available to encourage homeowners to switch from oil to gas or propane.
These can include state or federal tax credits, utility company rebates, and manufacturer promotions for high-efficiency furnaces.
It’s worth researching what incentives are available in your region, as they can significantly offset the costs of conversion.
What should I consider when choosing a new gas or propane furnace?
When selecting a new gas or propane furnace, consider factors such as efficiency ratings, brand reputation, and warranty options.
Look for a furnace with a high AFUE rating to ensure maximum energy efficiency. It’s also important to choose a reputable brand known for reliability and performance.
Consulting with HVAC professionals can help you assess your specific heating needs and make an informed decision based on your budget and preferences.