Search thousands of topics on CostHelper.com

BROWSE ALL TOPICS >> babies & children  cars  consumer electronics health & personal care home & garden personal finance  pets  schools small business sports weddings
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+
post Post   Comments (1)  
  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.
  • 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[1] .
  • 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[2] 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[3] pay a $125 "reward" to homeowners who install oil furnaces with 90% efficiency. The Database of State Incentives for Renewables & Energy Efficiency[4] 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[5] , Bryant[6] , Carrier[7] , Rheem[8] , Ruud[9] and Thermo Pride[10] .
  • The American Council for an Energy-Efficient Economy provides guidelines[11] 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[12] .
  • 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[13] and the Air Conditioning Contractors of America[14] .
  • Request and check references; ask about length and type of experience; and be sure they are properly bonded, insured and licensed[15] . Check for complaints with the Better Business Bureau[16] .
post Post   Comments (1)  
CostHelper News


7 Ways to Stretch Your Reduced Food Budget
End of the year budgets are tight for everyone, especially in this economy.It's especially hard for the millions of Americans who depend on government programs like food stamps to help make ends meet. || Posted November 11 2013


Fix-it Favorites: Duct Tape and WD-40
My mother taught me that all home fixit-projects can be accomplished with either duct tape or WD-40. If something shouldn't move and it does, use duct tape. If something should move and it doesn't, use WD-40. || Posted September 30 2013

‣ All CostHelper Blog Posts


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
Was this post helpful to you?   yes     no Report prohibited or spam


 

Comment On Your Experience With an Oil Furnace
 
Subject:  *
Amount Spent:  *
Brand: Model: 
Installer: Type: 
Comments: 
Purchased:  Year: 
City:  * State:  *
 
Information about you:
Email:  * Email addresses are not displayed.
Name:  This is the name we'll display with your post.
me on this computer
*=required field.
 



External Resources:
  1.  www.baycounty-mi.gov/Docs/CitizenCorps/MaintainingCoventionalResidentialOil-FiredH...
  2.  energy.gov/energysaver/articles/oil-fired-boilers-and-furnaces
  3.  www.focusonenergy.com/residential/efficient-products-appliances/residential-rewards
  4.  www.dsireusa.org/
  5.  www.armstrongair.com/products/oil-furnaces/
  6.  www.bryant.com/products/oilfurnaces/index.shtml
  7.  www.carrier.com/residential/en/us/products/oil-furnaces/
  8.  www.rheem.com/products/heating_and_cooling/oil_furnaces/
  9.  www.ruud.com/Products/Heating_and_Cooling/oil_furnaces/
  10.  www.thermopride.com/products/oil-products/oil-furnace
  11.  www.aceee.org/consumer/heating
  12.  www.energystar.gov/index.cfm?c=heat_cool.pr_contractors_10tips
  13.  www.hvacradvice.com/
  14.  www.acca.org/consumer/find-a-contractor/
  15.  www.contractors-license.org/
  16.  www.bbb.org/en/us/search
More Home and Garden Topics
Check Out All Costs for Home and Garden How Much Does a Propane Tank Cost? How Much Does a Plumber Cost? How Much Does Pressure Washing Cost?

Search Thousands of Topics on CostHelper.com

 
Today's Featured Cost Articles

About CostHelper
CostHelper is based in Silicon Valley and provides consumers with unbiased price information about thousands of goods and services. Our writers are experienced journalists who adhere to our strict editorial ethics policy.

CostHelper Community
Front and rear brake pads and brake fluid exchange
Paid: 499.24
A coupon for Kurt's Automotive came up so I went to his shop to get a second opinion from what the dealership told me for a free brake job inspection... [more]
-Heidi L.
Brakes Cost
Eye exam(pressure, muscle, peripheral), refraction, retinal exam, contact lens evaulation
Paid: 342.00
Using dad's insurance blue cross blue shield and mom's culinary... [more]
-Evelyn
Eye Exam Cost
12 shingles replaced
Paid: 200.00
Replaced 12 Shingles in 4 separate locations on roof. Left remaining 14 shingles w/me for future use. Only 40 minutes actual labor but I think he did a good job... [more]
-W. Hill
Roof Repair Cost
Eye glasses
Paid: 275.00
675 before insurance 275 after... [more]
-Bobby Sammy
Eyeglasses Cost
What we pay
Paid: 2400.00
Quarterly bookkeeping revisions plus 1099 for 3 employees and advising... [more]
-Felipe01
Business Tax Preparation Cost
Brake fluid exchange, front & rear brake pads and resurface rotors
Paid: 634.85
This is the estimate they gave me. Breakdown is brake fluid exchange would be 134.95 (too much it seems). front brake pads and resurface rotors $249.95 and same amount for the rear... [more]
-Heidi L.
Brakes Cost