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CostHelper > Home and Garden  > Electrical, HVAC & Energy Efficiency > Oil Furnace

Oil Furnace Cost

How Much Does an Oil Furnace Cost?

average costSimple Installation: $2,000-$5,000high costHigh-Efficiency, Complex Installation: $6,000-$10,000+
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  Typical costs:
  • Replacing an old oil-fired furnace with a new one typically costs $2,000-$5,000 for a simple installation of a basic model, but it can cost $6,000-$10,000 or more for a larger, more energy-efficient unit with a difficult installation, such as a complex floor plan or hard-to-reach ductwork. For example, the Carrier Comfort 80 Oil Furnace[1] series with 70,000-154,000 BTU and an AFUE rating (the amount of fuel converted into usable heat) of up to 82.4% is advertised as an economic choice, while the Carrier Performance OVL/OVM Oil Furnace[2] series with 77,000-154,000 BTU and an AFUE rating of up to 86.6% is advertised as providing added comfort and higher efficiency.
  • Oil-fuel furnaces are usually sold through a contractor with installation included in the pricing, and manufacturers do not typically publish suggested retail prices.
Related articles: Heating Oil, Heating Oil Tank, Ductwork, Central Heating, Radiant Floor Heating

What should be included:
  • Oil furnace capacity is measured in British thermal units, and one BRU is the amount of energy needed to raise the temperature of a pound of water by one degree Fahrenheit. A furnace rated 50,000 BTU consumes 50,000 BTUs an hour. The energy efficiency of a furnace is indicated by its annual fuel-utilization-efficiency rating, which is the percentage of energy actually used to heat the house.
  • The Cooperative Extension Service at Michigan State University explains residential oil-fired heating systems[3] .
  • The average AFUE rating for oil furnaces is 83%. Oil furnaces are relatively durable and reliable; they typically come with a 10-year warranty, and many homeowners report 15-20 or more years of service. Disadvantages are that the fuel must be delivered to and stored on the premises, and an annual furnace tune-up ($70-$200) is required to prevent leaks and decreased efficiency. Some experts recommend replacing the filter and nozzle every two months during constant use ($10-$20 do-it-yourself; about $50-$100 or more to have it done).
Additional costs:
  • Heating oil prices can fluctuate widely over time and by location. From January 2005 to March 2010, the average price nationwide was $1.95-$2.95 a gallon; from January to March 2012 the average weekly price was $3.85-$4.12.
  • A building/mechanical permit is usually required to replace a furnace. Fees are typically about $50-$300, but can be more in some locations. Many contractors include getting the proper permits and inspections as part of the installation process, but might bill for these fees separately.
  • Replacing an old oil-fired furnace with a higher-efficiency model may require installing a new chimney liner for $700-$1,800.
  • Removing an old fuel oil tank can cost $500-$3,000 or more, depending on local rates and the tank's size, condition and accessibility.
  • Older ductwork might contain asbestos, creating unpredictable additional costs for asbestos removal.
  • Replacement might not be necessary. The Environmental Protection Agency lists ways to retrofit an oil-fired furnace[4] to extend the life of the unit by improving performance and energy-efficiency.
  • It might be possible to get a low-cost loan, rebate or tax credit for installing an energy-efficient furnace. For example, utility companies in Wisconsin[5] pay a $125 "reward" to homeowners who install oil furnaces with 90% efficiency. The Database of State Incentives for Renewables & Energy Efficiency[6] tracks energy-efficiency rebates and credits offered by utilities and by state, federal or local government agencies.
Shopping for an oil furnace:
  • Major oil furnace manufacturers include Armstrong Air[7] , Bryant[8] , Carrier[9] , Rheem[10] , Ruud[11] and Thermo Pride[12] .
  • The American Council for an Energy-Efficient Economy provides guidelines[13] for deciding when to replace an old heating system and select a new one, and the Environmental Protection Agency lists tips for hiring and heating and cooling contractor[14] .
  • Shopping for a furnace typically means calling heating, ventilation and air conditioning contractors and getting estimates. Referrals are available from the North American Technician Excellence certification program[15] and the Air Conditioning Contractors of America[16] .
  • Request and check references; ask about length and type of experience; and be sure they are properly bonded, insured and licensed[17] . Check for complaints with the Better Business Bureau[18] .
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What People Are Paying - Recent Comments
poor replacing oil furnace
Amount: $5,300.00
Posted by: dissatisfied customer in Haldimand, Other.Posted: March 3rd, 2015 11:03AM
Brand: NewmacModel: nl2
Installer: Fisher Heating Caledonia OnType: oil
This professional installer came three times to measure the duct work guess what on insulation day they did not fit. No measure was taken on Btus required for home over rated burner installed humidifier so low if left would have burned the house down they never did finish the job had to hire another company to install and set up burner and a/c coil Who knew we need better control of these cowboy contractors
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