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Heating oil is primarily used in regions with heavy heating loads, including the Northeast, Mid-Atlantic, and Midwest. Heating oil is more expensive and has higher carbon emissions than alternative fuels. In addition, global oil price fluctuations leave homeowners exposed to inconsistent and often high costs of heating with oil. There is an opportunity for builders and technical professionals to help homeowners move away from oil to a cleaner and more affordable energy: propane.
Propane is often a better conversion option than moving to all-electric. Propane is an affordable energy source, and an oil-to-propane conversion avoids the significant costs required to upgrade electric utility service, which can include a new service panel to handle the new circuits and increased amperage requirements for electric systems.
A propane home is also more resilient. Increased use of electricity puts more stress on the power grid, and when power outages occur, an all-electric home will be challenged to supply the heating, cooling, lighting, and hot water needed. A home equipped with propane appliances and a propane generator can survive independent of the electric grid. Propane generators can also be installed for backup power at a lower cost than traditional diesel generators. The propane generator will turn on in case of a power outage and handle the electrical needs of the furnaces, water pumps, refrigerator, and other appliances. Because the electric demands of a propane furnace or boiler are much lower than for electric resistance heat, or a heat pump, the generator can be right-sized to be a more affordable, viable solution. This can help contractors and homeowners meet resilience and sustainability goals while offering a more comfortable living environment for homeowners.
In addition, the heat generated from propane heating is warm and comfortable. Electric heat is very dry and can be expensive when the heat strips kick in at temperatures below 40°F, or when trying to make rapid increases in room temperatures. Electric heat pumps dispense air at 95°F, which is then below body temperature at the register. Propane systems produce more efficient, comfortable heat with a shorter warmup period because it’s delivered at approximately 120°F.
Benefits of an Oil-to-Propane Conversion
The U.S. produces more than enough propane to meet demand. In fact, the U.S. is the leading producer of propane. Supplies are reliable and prices are more stable when compared to fuel oil from foreign sources. A high-efficiency, 95% Annual Fuel Utilization Efficiency (AFUE) propane furnace is less expensive to install as a replacement system compared to a standard-efficiency (78% AFUE) fuel-oil furnace. A propane furnace also has lower operating costs. For forced-air furnace systems in new homes, a high-efficiency (95% AFUE) propane-fueled furnace costs about $2,100 less to install and nearly $100 a year less to operate versus a high-efficiency (95% AFUE) oil-fueled furnace. In new or existing homes, high-efficiency propane furnaces offer payback periods from immediate to less than one year, compared to a standard-efficiency fuel-oil furnace.
There are also environmental benefits for conducting an oil-to-propane conversion. Propane is an approved clean fuel listed in the 1990 Clean Air Act. Switching to propane from other fuels like gasoline and fuel oil is an economical and viable solution for lowering carbon emissions. Using propane reduces the greenhouse gas carbon dioxide and air pollutants like carbon monoxide and nitrogen oxide. Propane is nontoxic and will not contaminate soil or water systems, and in the rare occurrence of a leak, it harmlessly vaporizes into the atmosphere.
Project Highlight: Sunapee, NH
Eastern Propane and Oil, which has been serving customers across New England since 1932, is recognized as a New Hampshire Veteran-Friendly Business with Platinum Level Status by the NH Department of Military Affairs and Veterans Services and NH Employment Security. The company is working with veterans to conduct oil-to-propane conversions, offering a free on-site evaluation of existing appliances. Eastern Propane recently worked on an oil-to-propane conversion at a house built in 1916 on Lake Sunapee, NH, where the twenty-year-old oil-fed furnace was on its last leg. The boiler hadn’t been cleaned in years and although Eastern’s maintenance team was able to keep the system running for the next three years, it eventually got louder with noxious exhaust fumes. Zach Lamott, an Energy Consultant for Eastern says, “The system was very loud between the open concept burner and the old power vented system. Sometimes this setup has a tendency to put off an oil smell if not running well. It also possessed many challenges when it came to serviceability for the technician because it was packed into a very small corner in a crawl space with minimal head height.”
Eastern installed a new, cleaner, and more efficient propane-fueled boiler/furnace for the veteran homeowner, and the homeowner is now considering investing in a new stove and standby generator, which will also be powered by propane. Eastern removed the old boiler from the basement, set up the new propane tanks on the outside wall of the house, and installed the new boiler panel and connections. Hot water returned after only a few hours and by day two, the homeowners were back to taking hot showers, driven by a near-silent and exhaust-free boiler.
Lamott notes, “The benefits to a new propane system installation is the fact that we were able to build most of the heating system at our shop ahead of time. We spent roughly a day on-site in the customer’s home completing the installation. The new propane system puts off far less noise and can be serviced from the front side of the unit, which helps in the small space location. A big win for a lot of customers is knowing they gain space, and this is certainly something that can be achieved with a new modern propane system. The customer was also extremely happy with the fact that we can monitor the propane level in the tank, where it is not very common or easy to monitor fuel levels with oil tanks.”
Proponents of Propane, Spread the Word
If your clients are considering an oil-to-propane conversion, it’s important to share with them how a high-efficiency propane-fueled furnace will save them money, provide more comfortable heat, and reduce carbon emissions. You will also help them build resilience against potential power outages when the system is combined with a propane-powered generator. All told, their return on investment compared to a fuel-oil furnace is almost immediate, both economically and environmentally.
Learn more about building with propane and watch the video below to see how an oil-to-propane conversion gave one Cape Cod home an energy makeover.
