You don’t have to stick with an oil furnace.

But you know that the conversion from oil to propane might be a hassle—from removing your oil tank to installing new gas lines.

Still, you can’t help but wonder about the newer, more efficient heating options out there.

Many homeowners are making the shift from oil to propane furnaces for efficiency and eco-friendliness. 

Here’s a comprehensive guide to converting your oil furnace to propane.


Your Furnace Conversion Options: Natural Gas or Propane

Before you decide to switch from an oil furnace, assess the availability of natural gas or propane in your area. 

If there’s a natural gas hookup near your home like there might be in Downingtown, or if you already use propane for other appliances, you have a choice between these two fuels.

Propane is an excellent choice if natural gas isn’t readily accessible. 

It’s stored onsite in a tank that is refilled as needed, providing a reliable fuel source.

This guide will delve into the details of making the switch to a propane furnace.

Benefits of Converting from Oil to Propane

When transitioning from an oil to a propane furnace, the advantages extend far beyond updating your heating system.

Cost-Effectiveness

Propane generally costs less per BTU than heating oil, which translates to lower heating bills. 

The exact savings vary based on regional fuel prices but expect 20-40% reductions in your heating expenses.

Increased Efficiency

Leading models of modern propane furnaces convert up to 98% of their fuel into heat

In contrast, older oil furnaces operate at 60-80% efficiency.

The higher efficiency of propane furnaces means they consume less fuel to produce the same amount of heat, reducing operational costs.

Reduced Environmental Impact

Burning propane produces lower levels of sulfur dioxide, particulate matter, and nitrogen oxides, which contribute to smog. 

Additionally, propane emits 50 to 60 percent less carbon dioxide due to its cleaner burn.

Home Value Increase

Homes with propane furnaces are more attractive to prospective buyers.

That’s because energy efficiency is a key selling point in today’s real estate market.

Homes that offer modern, cost-effective, and eco-friendly heating solutions like propane sell faster and at a higher price due to the growing demand for sustainable living.

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Costs of Conversion from Oil to Propane

Converting from an oil to a propane furnace in Pennsylvania involves several costs influenced by: 

  • regional labor rates
  • accessibility of propane
  • local regulations or permits required for installation
  • the complexity of the installation
  • the need to adapt or replace existing ductwork and piping

On average, the conversion costs anywhere from $2,000 to $12,000. 

This range includes the removal of the old oil furnace, removing the old oil tank, propane furnace installation, any necessary heating infrastructure modifications, and labor costs.

Incentives and Rebates to Convert from Oil to Propane

Many states like Pennsylvania, along with local energy companies, recognize the long-term benefits of more sustainable energy solutions.

They support these upgrades through various incentives, rebates, or tax breaks.

State and Federal Incentives

State and federal governments often offer incentives to encourage upgrades to energy-efficient systems. 

These may come in the form of tax credits that directly reduce the amount of tax you owe. 

Some states offer grants or low-interest loans for energy upgrades, which do not require repayment or come with below-market interest rates, respectively.

Utility Company Rebates

Local utility companies frequently provide rebates for customers who install energy-efficient heating systems. 

These rebates reduce the purchase price or offer a cash-back reward after installation.

These range from a few hundred to several thousand dollars, depending on the system’s efficiency rating and the local program’s specifics.

Some utility companies even negotiate discounted rates for energy-efficient appliances, which can be purchased directly through the utility company or its partners.

Energy-Efficient Mortgages (EEMs)

Offered by financial institutions, EEMs cover both the purchase and the installation costs of energy-efficient improvements.

This way, borrowers include the cost of energy-efficient upgrades in their home loan

By doing so, the cost of installing a propane furnace is spread over the mortgage term, reducing immediate out-of-pocket expenses.

Lenders may even increase the loan amount for borrowers opting for energy-efficient upgrades because of the expected savings on utility bills.

Timeline to Convert from an Oil to a Propane Furnace

The journey from an oil to a propane heating system typically unfolds over several days.

Here’s a closer look at what to expect during this transition.

Initial Consultation and Assessment

A certified HVAC technician will conduct a thorough examination of your existing oil heating system. 

This includes assessing the age, condition, and efficiency of your current furnace and connected equipment.

The technician will evaluate your home’s heating requirements by considering: 

  • total square footage
  • the quality of insulation
  • specific family heating needs

They’ll also examine the state and layout of existing ductwork and venting systems to determine their compatibility with a new propane furnace.

Preparation of Infrastructure

New propane gas lines are installed by trenching for underground lines. This protects them from physical damage and the occasionally harsh Chester County weather.

Your propane tank is then installed either above or below ground, although underground tanks are rarely installed in the winter because of the frozen ground.

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Afterwards, all fittings and connections are properly sealed and pressure-tested to prevent leaks.

Removal of the Old System

All connections between the tank and the furnace system are carefully disconnected. Pipes, gauges, and fuel lines are removed or safely capped.

The inside of the tank is then cleaned to remove sludge and residues that have built up over the years.

In cases where the tank cannot be removed whole, the tank is cut into smaller, manageable pieces.

The old oil furnace and any residual oil are properly disposed of or recycled, following environmental safety regulations to avoid contamination.

Then the site is cleaned and prepared for the new furnace installation.

Installation of the New Propane Furnace

The new propane furnace is carefully positioned and connected to the home’s existing ductwork or new ducts, as well as to the propane supply.

Then it’s integrated with existing home heating controls, and in many cases, thermostats are upgraded to ensure compatibility with the new furnace.

The furnace is initially fired up to ensure it operates correctly, making any necessary adjustments before final testing.

Testing and Final Adjustments

After installation, the new system undergoes rigorous testing to ensure it functions correctly. 

This includes: 

  • checking for leaks in the gas lines
  • adjusting airflow rates, fuel mixtures, and other settings
  • testing the furnace’s response to thermostat settings over multiple heating cycles
  • making any necessary adjustments to optimize performance

Infrastructure Changes When Converting from Oil to Propane

Adapting your home’s heating infrastructure for a propane furnace conversion involves comprehensive changes to ensure the system functions efficiently and safely, like…

Installation of Gas Lines

A certified technician will assess your property to determine the most effective route for new gas lines. 

They’ll consider the shortest and safest path from tank to furnace to minimize installation costs and potential disruptions.

Gas lines are usually made from corrosion-resistant materials like high-density polyethylene (HDPE) or coated steel. 

Safety features like shut-off valves and leak detection systems are installed along the line.

Upgrading or Installing Ductwork

If your oil system has minimal or no ductwork, installing or expanding ductwork might be necessary

This involves calculating the optimal duct size and layout to ensure even heat distribution throughout the home.

If your home already has ductwork from a previous system, a technician will inspect it to determine its suitability and efficiency for the new propane furnace.

Maintenance Differences Between Oil and Propane Furnaces

Maintaining a heating system effectively ensures its longevity and efficiency.

When comparing propane to oil furnaces, the differences in maintenance requirements are notable. 

Propane furnaces don’t involve the more labor-intensive maintenance tasks associated with oil furnaces. 

For instance, they lack oil filters, which require regular service to maintain efficiency. 

Additionally, oil furnaces need frequent chimney cleaning due to soot accumulation—propane combustion byproducts are cleaner.

However, annual inspections and tune-ups are still needed to ensure peak furnace efficiency.

Go From Oil to Kauffman Gas

Transitioning to a propane furnace offers a significant upgrade in efficiency and environmental friendliness.

However, its success depends on the expertise of your HVAC service provider. 

At Kauffman Gas, we pride ourselves on delivering personalized service and expert advice. 

Our goal is to provide you with a heating solution that exceeds your expectations in terms of performance, cost-efficiency, and reliability.

If you’re ready to explore the advantages of a propane furnace, contact Kauffman Gas today. 

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FAQs

Is it worth converting from oil to propane?

Converting from oil to propane can be highly beneficial. Propane is often more cost-effective and burns cleaner, reducing your home’s carbon footprint. Additionally, propane systems generally offer higher efficiency and require less maintenance than oil systems.

How long does oil-to-propane conversion take?

The conversion process from oil to propane typically takes a few days. This time frame includes: 

  • removing the old oil furnace
  • installing the new propane system
  • making necessary adjustments to your home’s heating infrastructure to accommodate the new system

How much does it cost to convert from oil to propane?

The cost to convert from oil to propane varies but typically ranges between $2,500 and $4,500. This cost includes removing the old oil furnace, installing the propane furnace, and making any necessary modifications to your heating system.

What are the disadvantages of oil furnaces?

Oil furnaces usually have lower efficiency rates than other heating options and require more frequent maintenance, including fuel delivery and tank cleaning. They also produce more emissions, contributing to a larger environmental impact, and the cost of oil can be highly volatile.