How Much Does it Cost to Convert From Oil to Natural Gas?

New Jersey homeowners and business owners currently using heating oil may be considering switching to natural gas. There are a number of reasons why people often consider making the switch. First of all, natural gas is cheaper. Only a few years ago, heating oil prices were upwards of twice as much as natural gas prices. However, this is quickly changing – heating oil prices have plummeted over the last year, to the point where prices are only 50 percent as much natural gas prices.

Although cheaper and cleaner burning, natural gas has its drawbacks as well. Although considered a clean energy source, natural gas extraction techniques are under harsh scrutiny by regulators and environmentalist groups. Despite being cheaper than heating oil, the costs of switching from heating oil to natural gas can be quite expensive – to the point where it’s not worth the effort.

The Costs of Converting From Heating Oil to Natural Gas

Not only is the cost of heating oil dropping significantly, but current heating oil systems burn oil at a much more efficient and cleaner rate than they ever did before. Then there are the costs of actually converting from one heating system to another that have to be considered. The following are just a few of the costs that a homeowner or business owner will have to pay for when converting from heating oil to natural gas:

  • Heating system – Not only will New Jersey homeowners and business owners have to pay to switch heating systems, which may include having to purchase a new boiler or furnace and a new water heater, but heating systems that use heating oil as their fuel are cheaper. And this is without considering the fact that heating oil systems typically have a longer lifespan – they often last for an average of 30 years or more, whereas the lifespan of a natural gas furnace is usually between 11 and 14 years.
  • Oil tank removal – Anyone that is converting to natural gas is going to want to remove the oil tank from their property, which will require a permit from the city (that can cost upwards of $300) to do. The actual cost of removing the oil tank can cost upwards of $2,000 – and this is if the tank has no issues with leaks. Then there’s the cost of re-landscaping the property after the oil tank has been removed.
  • Gas line installation – In order to have gas delivered into the home or business, a gas line is required. The costs will vary depending on the complexity of the job, the materials, the labor and how long the gas line runs. It will generally cost around $15 to $25 a foot covering all facets of the job.

Related Post: The Most Energy Efficient Home Heating Sources

 Oil to Gas Conversions in New Jersey

Heating oil systems have become much more efficient over the years, and converting to a natural gas system can be very expensive, which means that converting from heating oil to gas is probably not worth it. For information about oil to gas conversion services in Northern New Jersey, contact Woolley Home Solutions today.