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Most homeowners don’t use oil for their furnace for anything else—Nor would they want to, given that oil is often the priciest fuel option available. Oil leaks and propane gas leaks are problematic because both materials are flammable. Some companies remove a leased tank for free, depending on the contract terms. Oil leaks are messy and difficult to clean—just as it is difficult to clean oil off a pan. Anything it comes into contact with could be stained or damaged.

Operating costs to run a forced-air oil furnace are $80 to $145 monthly. A new oil furnace costs $1,200 to $4,000 without installation, for standard-efficiency models. Oil furnaces range from 60,000 to 150,000 BTUs per hour of heating capacity. Labor costs for oil furnace replacements are $1,000 to $3,000 on average. Prices depend on site accessibility, ductwork upgrades, electrical connection work, and oil-storage tank location.
Furnace Installation Near You
Costs depend on the home’s size, climate, interior heating preferences, heating system efficiency, and current oil prices. Oil costs $2.30 to $3.00+ per gallon, and tanks hold 300 to 500 gallons. A new oil furnace costs $2,500 to $6,000 to replace on average. Oil furnace prices are $1,200 to $4,000 for the oil burner, plus $1,000 to $3,000 for installation labor.

Ductwork replacement costs $1,400 to $5,600 on average or $25 to $55 per linear foot. One effective way to save money is to convert your oil furnace to propane. Switching to propane has numerous other benefits for health, safety, and convenience. Keep reading to learn the benefits of switching from oil to propane for home heating. Oil furnaces last 15 to 25 years, depending on the usage, brand, installation, and repairs. Some oil furnaces last more than 30 years if properly sized, installed correctly, and serviced annually.
When should you replace an oil furnace?
An oil furnace replacement costs $2,500 to $6,000 on average. A new oil furnace installation with an oil tank replacement costs $4,200 to $8,800. Oil furnace prices are $1,200 to $4,000 for standard oil heating systems, without installation.
Owning a propane furnace is a breeze compared to dealing with an oil-fueled model. Propane tanks and furnaces don’t need as much maintenance as their oil counterparts. Ducts need full or partial replacements if they don’t fit new building code standards, have leaks, or don’t fit with the new furnace parts.
What is an oil furnace?
An oil furnace is a home heating system that converts oil to heat. Oil furnaces are common in colder climates like the Northeastern United States. Replacing ductwork costs $1,400 to $5,600 on average or $25 to $55 per linear foot. The best oil furnace brands include Adams, American Standard, Carrier, Kerr, Regal, Trane, and Thermo Pride.

Check estimates for all material, labor, and equipment costs as well as the installation schedule. Compare furnace replacement quotes from at least three different companies. Cleaning underground clogged oil lines costs $200 to $1,000 on average. Air duct cleaning costs $300 to $700 on average or $25 to $45 per vent. If you shop at Home Depot for your furnace filters you’re going to be confused.
Installing an underground oil tank costs $1,900 to $6,000. Above-ground oil tank installation takes 3 to 5 hours, and underground oil tanks take 8 to 14 hours to install. Smart thermostat installation costs $225 to $400 on average.

Our advanced models are built for dependable, long-lasting performance and peace-of-mind to keep your family warm for years to come. They’re also designed to exceed standard efficiency levels, helping you save on energy costs. More than 80% of oil furnaces are in the Northeastern U.S. and use 45 to 60 BTUs per square foot. Homes 1,600 to 2,600 square feet need an oil furnace with 72,000 to 150,000 BTUs of heating capacity. The ideal oil furnace size depends on the home's square footage, outdoor temperatures, and insulation. Alternatively, replacing a propane furnace costs $2,200 to $5,700 on average.
Most new oil furnaces have 80% to 87% AFUE efficiency ratings. High-efficiency oil condensing furnaces are 90% to 97% efficient because they have two heat exchangers instead of one. Oil furnace efficiency decreases to 60% to 70% after 15 to 20 years without annual maintenance. Hybrid heating or dual-fuel systems that use an air-source heat pump are the most energy-efficient. Adding a hybrid heat pump costs $2,500 to $6,000 more on average.

An oil furnace replacement costs $2,650 to $7,300 on average, including permits. Total oil-burner replacement costs depend on the furnace location, system complexity, electrical upgrades, and ductwork modifications. Removing and disposing of an oil furnace costs $150 to $400 on average. Most contractors include this service in the labor costs of their quote. Ask HVAC technicians if they offer discounts on oil furnace removals when the old unit contains valuable scrap metals. Out of all the benefits of switching to propane, convenience is one of the most compelling reasons to make the move.