There are several differences between propane furnaces and oil furnaces. It’s important to take these differences into consideration when replacing a home furnace. A furnace is a large investment, so be sure to think about the appliance cost, fuel cost, how leak impact, venting and other things before making a final decision.
Appliance Cost
There are many variables to consider when comparing appliance cost of an oil furnace to a propane furnace. The size of the unit and whether additional structures need to be installed are two important factors that contribute to the overall appliance cost. Oil furnaces are typically cheaper to buy and install. However, propane furnaces are more cost efficient and can be added to existing heating and cooling more easily.
Fuel Costs
Generally, propane is less pricey in areas where it is easily accessible, while oil is less costly in areas where it is common and has a lower demand. Propane is more efficient in terms of actual use of fuel, but oil generates more heat per gallon of fuel, which can also save money on bills. The decision ultimately comes down to the individual circumstances of the homeowner.
Leaks
If a storage tank leak occurs, the consequences for home heating oil and for propane are considerably different. Oil on the ground is an environmental hazard. If the leak isn’t discovered right away, the oil can seep into the underground water supply and cause longterm damage. Cleanup can require excavation and can be very costly to the homeowner. Propane leaks outdoors disperse into the air and do not impact groundwater. Leaking propane outdoors is not easily ignited. However, if it is ignited, an explosion can do a lot of damage. Propane leaks indoors can kill people by inhalation or destroy a home by explosion and fire.
Venting
When installing a furnace in the home, ventilation must be installed to force the combustion fumes outside. Both propane and oil furnaces can use chimney ventilation. However, oil is more dangerous due to higher temperatures in the pipes, which can lead to a fire. For an oil system, the vent can be installed on the side of the house. Unfortunately, this setup can cause staining and will also vent some of the heat produced. That makes the fuel less efficient and increases the oil bills.
Other Considerations
There isn’t much difference between oil and propane furnaces in terms of maintenance needed. However, oil furnaces stain and transmit pollution, which means higher maintenance costs in some circumstances. Propane heaters are subject to more safety standards. Propane furnaces win efficiency comparisons. Propane furnaces are typically 90 percent efficient, while oil furnaces are measured in the high 70 percent efficiency range.
Take time to figure out which furnace would be most suitable for your specific circumstances. Availability of the fuel in your region may be an important factor. Check out local furnace companies and consider the good and bad points for each furnace.
Sources:
US Department of Energy: Furnaces and Boilers (accessed 12/7/2010)
VonWentzel: Fuel Choices (accessed 12/7/2010)
Lund University: A Case Study of Reheating Furnaces in the Steel Industry (accessed 12/7/2010)
Home Construction and Improvement: Oil vs Propane (accessed 12/7/2010)