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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.
Discounts:
  • 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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External Resources:
  1.  www.residential.carrier.com/products/furnaces/oil/comfort.shtml
  2.  www.residential.carrier.com/products/furnaces/oil/performance_ov.shtml
  3.  www.baycounty-mi.gov/Docs/CitizenCorps/MaintainingCoventionalResidentialOil-FiredHeatin...
  4.  energy.gov/energysaver/articles/oil-fired-boilers-and-furnaces
  5.  www.focusonenergy.com/residential/efficient-products-appliances/residential-rewards
  6.  www.dsireusa.org/
  7.  www.armstrongair.com/products/oil-furnaces/
  8.  www.bryant.com/products/oilfurnaces/index.shtml
  9.  www.residential.carrier.com/products/furnaces/oil/index.shtml
  10.  www.rheem.com/products/heating_and_cooling/oil_furnaces/
  11.  www.ruud.com/Products/Heating_and_Cooling/oil_furnaces/
  12.  www.thermopride.com/products/oil-products/oil-furnace
  13.  www.aceee.org/consumer/heating
  14.  www.energystar.gov/index.cfm?c=heat_cool.pr_contractors_10tips
  15.  www.hvacradvice.com/
  16.  www.acca.org/consumer/find-a-contractor/
  17.  www.contractors-license.org/
  18.  www.bbb.org/us/Find-Business-Reviews/
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