How Much Does A New Oil Furnace Cost? A Detailed Analysis


Are you looking to replace your old oil furnace? Here, we explore the cost of new oil furnaces, installation prices, fuel options, efficiency ratings and other important considerations. Choosing the right furnace is key to staying comfortable in your home, even in cold winters or mild climates. There’s a range of brands and models with different AFUE ratings, so you need to choose wisely and not break the bank!

How Much Does A New Oil Furnace Cost

When it comes to replacing an old furnace, the total cost includes labor, parts, removal of old units and inspection/permits in some areas. The average price range for a new furnace replacement can vary based on factors like home size, type/brand of equipment and heating capacity. Installation labor costs will depend on where you live and any permit requirements.

Pro Tip: Invest in energy-efficient furnaces to reduce energy bills by up to 30%. You can also get tax credits from the government to make them more affordable.

In Conclusion: Choosing the perfect oil furnace replacement needs careful assessment of your home’s heating system needs by HVAC contractors who specialize in installations. They will guide you through different types of fuels – propane furnaces, electric furnaces, natural gas systems, and underground oil lines with reduced carbon monoxide emissions. With all the options today, you don’t have to worry about having insufficient choices for your particular situation. Investing in efficient oil furnaces will help you save money annually while keeping your family warm during cold weather.

Factors Affecting Oil Furnace Costs

To determine the costs of an oil furnace for your home, factors such as the size of your home and heating capacity needs, efficiency ratings, and energy bills, climate and fuel source, and the brand and model of the furnace play a significant role. In this section, we will take a closer look at each of these sub-sections and how they impact the overall cost of installing a new oil furnace.

Size of Home and Heating Capacity Needs

Home size and heating capacity needs are huge factors in oil furnace costs. The bigger the home, the more heating power is needed. It’s key to know your house’s square footage and your heating requirements before buying a furnace.

The table below illustrates this:

Home Size (square feet)Heating Capacity Needs (BTU per hour)Approximate Cost ($1,500-$5,500)

This table shows various home sizes with their BTU ranges for successful heating. Each range has a cost of around $1500-$5500.

Insulation levels and where you live should also be taken into account when deciding these needs, as they can affect energy efficiency and running costs.

Pro Tip: To save money in the long run, make sure to do regular maintenance checks and use it efficiently. Higher furnace ratings mean lower bills – unless you’re using it to cook.

Efficiency Ratings and Energy Bills

Considering oil furnaces? Efficiency ratings are a must-know. The higher the rating, the less fuel is needed for heat, which means lower energy bills. See the table below to understand the impact of efficiency ratings:

Efficiency RatingAnnual Energy Cost

From 80% to 90%, savings of up to $400 per year! Homeowners must think these savings through before making a choice. Other factors to consider include furnace size and maintenance costs.

On the other hand, US Energy Information Administration (EIA) reports that heating oil prices stay relatively stable with slight changes due to seasonal demand. So, choose an efficient furnace with manageable maintenance costs that matches your budget. Don’t let climate change your mind… unless you want to freeze your assets off!

Climate and Fuel Source

Location and fuel type can have a huge effect on the cost of an oil furnace. In colder climates, furnaces with higher efficiency ratings are needed, which drives up installation and maintenance costs. Different fuels have different prices based on availability and demand. Sources are usually crude oil or natural gas liquids, and prices vary due to market demand, geopolitics, and weather. Drilling costs, refining processes, storage capacity, and regulations also influence fuel prices.

Other factors to consider when buying a furnace include the existing ductwork system’s compatibility with a new furnace, labor charges from HVAC contractors, and insulation services to reduce heat loss. To save money in the long run, it is essential to consult experts to analyze your home’s specific requirements for optimal performance. Poorly maintained heating systems can cause health issues due to air quality deterioration or pipe leaks.

Investing in affordable, sustainable heating options that provide long-term benefits and ensure safety measures is key. Furnace choice is like picking a spouse – it’s a major commitment and you must make sure it doesn’t leave you out in the cold!

Brand and Model of Furnace

When looking at oil furnace costs, there are a few factors to consider. Brand and model of furnace is one such important factor. Prices can vary greatly depending on the features and size of the furnace.

Let’s look at a table with different brands and models of oil furnaces along with their features and prices.

Carrier Performance SeriesEnergy-efficient; quiet$1,700 – $2,500
Trane XV80Durable; clean air delivery$1,800 – $3,000
Lennox Elite Series EL0188VHigh-efficiency; reliable operation$2,200 – $3,500
Rheem ROCA-E15A4SAA-448LPHigh efficiency; reduced emissions$1,850-$2,700
Speed Two-stage Upflow /Horizontal Gas Furnace with LP KitQuiet and highly efficient heating performance$1455

The table shows various brands and models of furnaces and their prices. It is important to consider these factors before investing in a certain brand.

Apart from these key factors, other pricing strategies may either save or cost you money. For example, checking your oil tank frequently can give you enough warning before you run out of fuel, leading to financial benefits.

A friend once shared how she saved money by having her fill pipe changed. This allowed no-spill fill, resulting in less roadwork and cleaning up spilled oil.

Why buy a new oil furnace when you can just hibernate for the winter?

Average Cost of New Oil Furnace Installation

To get a new oil furnace installed in your home, with a focus on the average cost, you need to consider various factors such as the installation labor cost, oil tank & line installation cost and prices of the furnace units themselves. I’ll break down these factors to give you a better idea of what to expect during the installation process and the cost ranges involved.

Installation Costs for Labor, Oil Tank, and Oil Line

It’s no surprise that labor, oil tank and oil line installation for a new oil furnace come with a cost. To help you figure out an accurate total, here’s the average price breakdown.

Installation CostsAverage Price
Labor charges$500 – $700
Oil Tank Installation$1,000 – $800
Oil Line Installation$300 – $800

But be aware: these prices could vary depending on the size of the residence or building. Location, accessibility and ductwork changes can also affect the total.

I recently had my own oil furnace installed and it was a shock when I saw the total cost. Knowing what to expect beforehand would have been useful. Now I’m all set for the heat – both from the furnace and my wallet!

Prices for Oil Furnace Units and Replacement Costs

Pricing an oil furnace unit and replacement involves various factors. Size, brand, heating area, efficiency ratings and installation costs matter. Prices range from $1,800 to $7,500 for the furnace. Installation costs can be from $2,000 to $5,000. Extra ductwork or chimney linings may cost between $600 and $3,000.

The brand of your furnace will affect the cost. An expensive furnace doesn’t always mean it’s the best choice. It’s also worth considering your home’s needs and location-specific temperatures.

Having knowledge of these factors can help you make decisions when buying and installing a new oil furnace. It can even help you negotiate with installers.

Radiant heat from fires has been around since ancient times. Modern technology now does the same job – keeping our living spaces warm! Trying to save money on oil furnaces can be tough, but it’s worth a try!

Low-Cost Options for Oil Furnaces

To find a low-cost oil furnace solution for your home, you can explore standard efficiency models and DIY projects. Additionally, opting for used or reconditioned oil furnaces can be a smart choice to save some bucks. In this section of the article, we will explain these sub-sections to give you an idea of how you can cut the costs of oil furnace installation or replacement.

Standard Efficiency Models and DIY Projects

Standard efficiency models of oil furnaces, and DIY projects, offer an economical option for homeowners wanting to enhance their heating systems. See the table below for standard models and DIY projects to make them work better.

Standard Efficiency ModelsDIY Projects
Single-Stage BurnersInstall a programmable thermostat. Clean or replace air filters.
Two-Stage BurnersInstall an economizer, add ductwork insulation.

Homeowners can also get tune-ups and maintenance checks. This makes sure the boilers are operating optimally during the heating season.

Improvements have a cost. But they might be worth it to avoid major breakdowns that cost more than maintenance. One homeowner had been avoiding a tune-up due to its cost. During the maintenance check, it was found he had been over-filling his tank with oil. This caused sediment to form below the burner flame. This reduced efficiency and eventually caused a breakdown after six months of use.

Why buy a new one when you can get an old one that still has some spark?

Used or Reconditioned Oil Furnaces

Considering cost-effective options? Pre-owned or refurbished models may be a viable alternative. Here are some benefits and considerations:

  • Cost: Used furnaces are usually cheaper than new ones.
  • Efficiency: Older models may not be energy efficient, but some have been updated with modern tech to make them more efficient.
  • Risks: Consider any potential problems that could arise, such as a shorter lifespan or undisclosed defects.
  • Certification: Ensure the furnace has been recertified before purchase, as lack of certification could indicate safety risks.

Be cautious when selecting used or refurbished furnaces. An experienced technician can help you choose the best option without sacrificing safety or efficiency. Here are ways to improve your odds of success:

  • Do research: Understand what you’re getting into before accepting any offers and investigate all certifications and maintenance records.
  • Budget: Account for installation costs, repairs/maintenance, and operational expenses when selecting a used oil furnace.
  • Avoid dubious sellers: If something doesn’t seem right, don’t hesitate to walk away and look elsewhere.

Want to stay warmer than a Kardashian? Check out the high-cost options for oil furnaces!

High-Cost Options for Oil Furnaces

To help you find high-cost options for your oil furnace replacement with options to improve your monthly energy costs, explore high-efficiency models and heat pumps, along with natural gas furnaces and boiler systems. Read on to discover the benefits of these two sub-sections.

High-Efficiency Models and Heat Pumps

Advanced, efficient oil furnace models boast high energy ratings and heat pumps. These alternatives to conventional furnaces reduce fuel costs, carbon emissions, and make a cleaner environment.

See below for details:

TypeEfficiency RatingCost
High-Efficiency Models90% – 98%$$ – $$$
Heat Pumps200% – 300%$$$ – $$$$

For maximum efficiency, experts suggest insulation, closed doors and windows, regular servicing, and furnace cleaning.

Forget the high-cost oil furnace game. Switch to natural gas and let the savings light up your wallet!

Natural Gas Furnaces and Boiler Systems

Natural gas heating systems provide an efficient and cost-effective way to warm your home or business. They work by using clean-burning natural gas to produce heat. Then, a central heating unit or boiler distributes the heat throughout your property. Gas systems are reliable and require less maintenance than oil furnaces. As the gas pipeline network expands, natural gas is becoming more widely available.

There are many benefits to using natural gas systems over oil furnaces. These include lower costs, environmental impact, and greater temperature control. Natural gas also produces fewer emissions than oil.

Switching from oil to natural gas requires some upfront costs. This includes installation of new piping and units. However, this is offset with reduced energy bills and greater efficiency.

One Connecticut resident switched from an oil furnace to a natural gas system. He invested in the conversion after his furnace broke down in the middle of winter. Now, he enjoys improved temperature control and reliability without frequent maintenance.

Good news: you can get financing and tax/utility incentives for oil furnace installation. Bad news: you still need to pay for the furnace.

Financing and Tax/Utility Incentives for Oil Furnace Installation

To finance your oil furnace installation, there are many options available. With energy-efficient home improvement tax credits, you could cut down the cost of installation significantly and receive financing options and rebates from utility companies. These incentives encourage homeowners to adopt oil furnaces while reducing their carbon footprint. Energy-Efficient Home Improvement Tax Credits and Financing Options and Rebates from Utility Companies are two sub-sections that will explain the ways to make your installation more cost-effective.

Energy-Efficient Home Improvement Tax Credits

Government programs around the world promote energy-efficient home improvements. Tax credits are available to install energy-saving devices, like heating equipment, insulation, solar panels, and geothermal heat pumps.

  • Tax credits cover costs of installation.
  • HVAC systems get 300$, boilers 150$.
  • Solar systems get 30% off until 2022.
  • Lifetime limit for residential energy tax credits is 500$.
  • Contractors certified in energy-efficient installations get you the maximum savings.

State-supported initiatives also exist. Incentives include sales tax exemptions on eligible services/products and local grants.

Tax Credits started in 2005 and extended in 2011 and 2013. Obama’s policy included insulation and air-sealing measures. Invest in an oil furnace and get warm, inside and out, with sweet utility rebates.

Financing Options and Rebates from Utility Companies

Are you considering setting up an oil furnace? It can be pricey, but financing options and incentives make it more affordable. Utility companies provide:

  • Low-interest loans with flexible repayment options.
  • Rebates on the purchase of new oil furnaces.
  • Potential tax credits from the federal or state government.

Check with local utility companies to get details. Taking advantage of these incentives will save you money and help the environment.

Remember to read through the loan and rebate terms and conditions before agreeing. And don’t forget the importance of proper maintenance – it’ll save you money and make you feel snug!


Oil furnace installation and maintenance require attention to several pointers. Choose an energy-efficient furnace with AFUE ratings to save up to 35% on energy costs. Don’t just consider square footage, but heating capacity when selecting a furnace size. Regular professional inspections and maintenance are essential to ensuring longevity and safety. Plus, always hire a licensed HVAC contractor for installation and permit requirements.

Insulate indoor spaces and ducts to minimize heat loss. Prepare a budget for unit prices, permits, labor, inspection fees, and oil tank replacement costs, if needed. For accurate quotes, search online platforms for reputable HVAC contractors. Follow state regulations for underground oil lines’ placement to avoid soil contamination and damage during repairs.

Research is key! A homeowner’s story illustrates the importance of researching before replacing an old unit with an electric furnace. Cold winters can increase monthly bills with fewer British thermal units per dollar spent. Seek expert help to save money in the long run. Comfort and air quality are also important factors in your home’s suitable temperatures and avoiding soot buildup or exhaust vent inspections.