Cost to Convert an Oil Furnace to Gas
Converting an oil furnace to natural gas is a popular upgrade for homeowners seeking cleaner energy and lower heating costs. However, understanding the cost to convert an oil furnace to gas involves multiple factors such as equipment, labor, permits, and additional modifications. This article provides an in-depth overview of the conversion process, factors influencing expenses, and tips on making the transition efficiently.
| Factor | Estimated Cost Range |
|---|---|
| New Gas Furnace Installation | $3,000 – $7,000 |
| Conversion Kit (if applicable) | $100 – $500 |
| Labor & Installation Fees | $1,000 – $3,000 |
| Gas Line Installation/Upgrade | $500 – $2,500 |
| Permits & Inspections | $100 – $600 |
| Total Estimated Cost | $4,700 – $13,600 |
Why Convert from Oil to Gas Furnace?
Homeowners typically choose to convert oil furnaces to natural gas due to several benefits. Gas furnaces are generally more cost-efficient, producing lower heating bills compared to oil. Natural gas burns cleaner, leading to reduced carbon emissions and a smaller environmental footprint. Additionally, gas furnaces require less maintenance, and the fuel is more readily available in many regions across the United States, providing a convenient heating option.
Key Factors Affecting the Cost of Conversion
Type of Conversion
Costs can vary depending on whether the existing oil furnace can be converted directly using a conversion kit or needs to be replaced entirely. Older oil furnaces may not be compatible with conversion kits, necessitating a new gas furnace installation which typically increases cost significantly.
Gas Line Installation
If natural gas is not already connected to the home, installing a gas line will be one of the biggest expenses. The cost depends on the distance from the main gas supply and the complexity of the installation. Urban areas may have easier access compared to rural locations where the gas line must be extended over longer distances.
Labor Costs
Licensed HVAC professionals are required for the conversion since precise calibration ensures safety and efficiency. Labor costs vary regionally but usually include removing the old oil furnace, installing or converting the gas system, and obtaining necessary permits.
Permits and Inspections
Local building codes typically require permits and inspections when converting heating systems, adding to the total cost. These ensure compliance with safety and environmental standards. Costs vary by city and state regulations.
Step-by-Step Conversion Process
- Assessment: A professional HVAC technician evaluates the current oil furnace, ductwork, and availability of natural gas supply.
- Gas Line Installation: If needed, a gas line is installed from the main supply to the home’s furnace area.
- Furnace Modification or Replacement: Depending on the furnace compatibility, either a conversion kit is installed, or a new gas furnace replaces the oil unit.
- System Calibration: The gas furnace is calibrated for optimal airflow and combustion.
- Permits and Safety Checks: Final inspections ensure all work meets code requirements.
Comparing Conversion Costs Against Long-Term Savings
While initial conversion costs can range from $4,700 to over $13,000, homeowners often recoup expenses through savings on fuel and maintenance over time. Natural gas is priced more stably and often cheaper than heating oil, leading to significant annual savings. Additionally, many utility companies offer rebates and incentives for converting to gas.
Additional Considerations
Energy Efficiency
Upgrading to a modern gas furnace during conversion can improve heating efficiency, with some models offering Annual Fuel Utilization Efficiency (AFUE) ratings above 95%. This reduces wasted energy and complements the cleaner fuel source.
Environmental Impact
Natural gas produces fewer greenhouse gases than oil, making the conversion a more environmentally responsible choice. For those prioritizing sustainability, this switch supports cleaner air and reduction in carbon footprint.
Safety Factors
Gas furnaces must be installed with proper ventilation to prevent carbon monoxide buildup. Only qualified professionals can ensure safe and compliant conversion, emphasizing the importance of hiring reputable HVAC contractors.
How to Choose the Right HVAC Contractor
Choosing an experienced contractor is crucial for a successful oil-to-gas furnace conversion. Look for:
- Licensing and certification specific to gas furnace work
- Positive customer reviews and referrals
- Written estimates and detailed project scope
- Experience with local regulations and permit acquisition
Cost Breakdown Example for a Typical Conversion
| Item | Description | Estimated Cost |
|---|---|---|
| Gas Furnace | Mid-efficiency 80-95% AFUE furnace replacement | $3,500 |
| Removal of Oil Furnace | Labor and disposal fees | $600 |
| Gas Line Installation | Connection from street to home | $1,200 |
| Permits & Inspections | Municipal fees | $350 |
| Labor & Installation | Furnace setup and testing | $1,200 |
| Total | $6,850 |
Tips to Reduce Conversion Costs
- Obtain multiple quotes from reputable HVAC providers
- Investigate local rebates or utility company incentives
- Plan the conversion during the off-season for potential discounts
- Consider upgrading insulation or sealing ducts simultaneously to maximize savings