Cost Comparison of Electric Vs. Oil Furnaces
- Electric Furnaces are a fairly rare heating option, and are recommended mainly when oil or gas is not feasible. They are often used in conjunction with geothermal heating, which is a system of pipes buried underground that uses ground temperature to moderate the temperature within the house. In electric furnaces, blowers force air over heated elements, similar to those in electric stove burners. The warm air travels through an air duct system, which heats the rooms.
- Oil furnaces spray an oil, similar to diesel fuel or kerosene, onto electrodes. A spark lights the oil. The heated air is then forced through the ducts in the home, heating it. Oil furnaces are fairly common, as are propane or gas furnaces.
- Electric furnaces are easy to install, and, because of their small size, fit into most spaces. They are safer than many options, because they do not require a pilot light or use potentially dangerous chemicals. Electric furnaces last between 20 and 30 years, well beyond many other types. The annual fuel utilization efficiency (AFUE), or the amount of fuel that is turned into heat, is 80 to 90 percent.
Oil furnaces are a popular choice, because they have one of the lowest costs to install when compared to dominant types of furnaces, such as gas and propane. They are efficient, with an AFUE of 83 percent and a lifespan averaging between 15 and 20 years. Oil furnaces use a clean-burning fuel, and many companies are now offering biodiesel blends for use in oil furnaces. These domestic blends are optimal for residents wishing to reduce their reliance on oil from foreign nations. - Electric furnaces are extremely expensive to operate, which is a major downfall of this system. Also, if the electricity is disrupted due to bad weather, it will affect your ability to heat your home.
Oil furnaces have dangerous emissions, which are contained when the system is properly maintained. However, it is possible that an undetected leak could expose residents to toxic fumes. Because you have oil and a flame together, there is always the chance that something could go wrong, causing a house fire. Another, less serious, downside is that the oil must be brought to the house, unlike with gas or electric furnaces, where the fuel is readily available. - Electric furnaces are inexpensive to purchase and install. The average cost is $1,000 to $1,500, with installation costing between $1,000 and $2,000. Operating costs are "crazy expensive," and vary with your climate temperature, the size of your home, and the current cost of electricity.
For basic oil furnaces, the purchase cost can be as little as $2,000 to about $5,000. Installation runs anywhere from $6,000 to $10,000, depending on the complexity of your floor plan. Operating costs are reasonable, at about $1.50 per gallon for fuel.
