How Much Does It Cost to Replace an Oil Furnace With Gas?
Normal range: $1,200 - $5,000
The average cost to purchase and install a gas furnace is usually anywhere from $1,200 to $5,000, depending on what type of gas furnace you purchase.
As the air gets colder, the warmth of your furnace makes your home an inviting and comfortable place to snuggle in. However, it’s no secret that cranking up the heat on that traditional oil furnace is akin to cranking up your utility bill, by oh, a few hundred. If you’re considering switching from oil to gas heat to save on heating costs, here’s the lowdown on making the switch.
- Average
- $3,500
- Low end
- $700
- high end
- $10,000
Oil vs. Gas Furnace
When you’re talking about furnaces, it’s important to know the distinctions between an oil versus a gas furnace. An oil furnace relies on oil as the fuel source instead of natural gas. Oil fuel is less flammable than natural gas, and you store it in a tank near your home. Overall, oil furnaces cost less but aren’t as energy efficient as a natural gas option. Oil furnaces also require more maintenance than gas furnaces, including regular cleanings.
What Is a Gas Furnace?
A gas furnace is a heater designed to warm your home using natural gas, the cleanest of all fossil fuels. Unlike oil, natural gas produces by-products with the least impact on the environment, like carbon dioxide, water vapor, and a tiny bit of nitrogen oxide.
Gas furnaces use natural gas or propane to heat the air inside the furnace before releasing it throughout your home. Here’s a quick peek at the differences between natural gas and propane gas furnaces:
Natural Gas Furnaces
The gas used in a natural gas furnace is composed of a mixture of methane, propane, butane, and other traces of gasses. This mixture is piped into your house, and it requires a gas main located near your home.
While most areas have gas lines, you may need to call your local utility company to be sure one is available. If you’re not near a gas line, you might be able to convince the local gas company to install a gas main if you and enough neighbors in your area agree to use the service.
Propane Gas Furnaces
The fuel used in propane furnaces is propane, which is a by-product of either crude oil or natural gas. It comes in a liquid form, which you’ve probably seen in large canisters on the outside of your local home improvement store. These furnaces are designed to convert the liquid form of propane into a gas that works similarly to natural gas.
Once the gas line or propane tank is connected to the furnace, your thermostat will signal to the burner to ignite the natural gas. This will warm the air that enters the furnace, which then is sent to the ducts and pushed out into your home, where you and your family can enjoy the reprieve from a cold, winter day.
Pros and Cons of Gas Furnaces
Before deciding whether switching from oil to gas heat is right, get your pen and paper out to start jotting down all the pros and cons that can impact your choice.
Pros of Gas Furnaces
Gas furnaces are beneficial in many ways. Here are a few pros to choosing a gas furnace for your home:
Gas furnaces are more cost-effective than oil-burning and electric furnaces: According to a report by the Energy Information Administration (EIA), gas furnaces are estimated to cost homeowners approximately $750 to keep warm. By comparison, heating oil costs are estimated at an average of $1,700, and electricity costs will fall around $1,250.
Some gas furnaces are highly efficient. Highly-efficient gas furnaces use as much as 98% of the energy used to run the furnace.
Propane and natural gas reduce carbon dioxide emissions. The Clean Air Act lists propane and natural gas as cleaner fossil fuels than gasoline and diesel.
Installing a gas hookup adds versatility to other appliances. Once your home has a gas hookup, you can convert your other appliances (such as your oven, stove, washer, and dryer) to gas, which will save you even more in the long run.
Cons of Gas Furnaces
Gas furnaces come with a few cons that might help you determine whether or not making the switch is right for you. These include the following:
There are high upfront costs. A gas furnace installation for an average 1,600 to 2,000-square-foot house will cost you between $3,800 and $10,000.
Gas furnaces produce carbon monoxide. This invisible and odorless chemical is poisonous, so make sure you have a carbon monoxide detector installed. The CDC also recommends you hire a local pro to inspect your furnace every year.
You might need to pay to have the old furnace removed. If you’re hoping to replace your old furnace, you’ll have to hire a local furnace pro to remove it, which will cost anywhere from $60 to $500.
Switching to gas may require changes to your current furnace chimney and hookup. To factor in potential expenses like these, contact an HVAC professional to see what changes you will need to make.
You might need a building permit for installation. Building permits vary depending on your location, but if you do need one, they cost between $400 and $1,500 on average.
Gas furnaces have a shorter lifespan than electric furnaces. Your furnace will last for around 15 to 20 years compared to the 20 to 30-year life span of an electric furnace.
How Much Does It Cost to Install a Natural Gas Furnace?
Gas furnaces cost around $2,250 on average depending on the size of your home. Colder climates may require a high-efficiency model, which will run $3,5000 to $5,500. Energy-efficient systems cost a bit more but will save you money on fuel costs in the long run. Additionally, you may be eligible for a tax credit of $150 if you buy an ENERGY STAR-certified furnace.
Keep in mind, the equipment isn't the only cost factor to consider. You'll also need to install underground piping from the gas main to your home if you choose natural gas. Underground gas lines cost around $250 to $800 on average.
If you choose a propane furnace, you’ll need to factor in the cost of a propane tank, which is roughly $500 to $3,000. Though this upfront cost is steep, your propane tank will last up to 30 years. Alternatively, you can rent a propane tank for $50 to $200 yearly.
Is a Gas Furnace Worth It?
So, is it worth spending a few thousand dollars to switch from oil to gas heat? When considering gas furnace savings, you could pay yourself back in just a few years. Compared to oil-burning furnaces, your gas furnace will save you around $950 annually, and compared to electric furnaces, you will save about $500 annually.
At the end of the day, your decision depends on your own personal situation, how complicated making the switch is for your particular home, and how long you plan on staying at your current house.
Sara Coleman contributed to this article.
Frequently Asked Questions
Yes, it’s possible to convert an oil furnace to gas. However, you may have to replace the furnace completely instead of simply converting it. If the original oil furnace has had any type of damage or is older (typically considered over 15 years old), then you will likely need a full replacement versus a conversion.
A few factors determine the amount of time it takes to convert from an oil to a gas furnace, mainly adding in the gas lines, updating your appliances, removing the old oil system, and installing a chimney line. These projects can vary, but you should expect them to take at least two or three days to complete.