With the cost of heating oil going up year after year, many homeowners are wondering if they shouldn’t simply get a new heating system. However, such a change has considerable implications, primarily when it comes to finances. It is important to carefully weigh the pros and cons before making such a decision, the rising cost of fuel not being the only factor to take into account.

Preliminary assessment of the existing heating system

Age of the current oil furnace

Since the purchase of an oil system is a major expense, it must be old enough to need replacement. In fact, if it’s less than 15 years old, there is a good chance that the new equipment wouldn’t reduce energy costs within a reasonable time frame. In addition, more recent systems are quite efficient, which reduces the potential benefit of getting a new one. In general, if the equipment hasn’t reached the end of its service life, there’s nothing to be gained by replacing it.

Energy consumption

It’s also important to evaluate the amount of energy a house consumes; the lower it is, the less money that can be saved by changing the heating system.

Solutions to consider before replacing your heating equipment

Improvements possible

It is sometimes possible to replace certain parts of the system to make it more efficient or to reduce heat loss. Along the same lines, it is possible to improve your home’s insulation or to make it more airtight in order to keep the cold out better, thus reducing your home’s heating needs. Keeping cold air from getting into the house reduces the amount of energy it consumes, which likewise lessens the need to change systems.

Dual energy as an alternative to making a complete change

It’s possible, in Québec, to opt for dual energy. It is then a question of taking advantage of lower electricity rates for complementary heating when the temperature is above -12°C.

Calculating the amortized cost of new equipment

Lastly, it is quite difficult to calculate the amortized cost since a system can last up to 30 years. The cost variations of the energy source are also hard to predict. In fact, it is practically impossible to know if the difference in cost between oil and other energies will shrink or grow.

It is important to make projections of future costs for this type of project and to take into account the cost of maintenance and repairs to the current or new heating system that you are considering.