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How Much Does it Cost to Convert an Oil Furnace to Gas?

Oil to Gas Furnace Conversion

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If you spent several hundred dollars last winter heating your house, you are not wrong in considering a switch to a gas-operated furnace. There are many benefits of using a gas-operated furnace, including higher efficiency and less money spent on furnace maintenance. No wonder more than half the country has made the switch to natural gas furnaces already, leaving less than 8% still relying on oil to fuel their furnaces.

Can You Convert An Oil Furnace To Natural Gas?

Yes—you can convert an oil furnace to natural gas, but it isn’t a simple switch. The process typically requires replacing the oil burner with a gas burner, installing a gas supply line, adjusting the furnace controls, and sometimes upgrading the venting system.

Because natural gas and oil burn differently, this conversion must be done by a licensed HVAC technician to ensure safety, efficiency, and compliance with local codes.

How Much Does a Gas Furnace Cost?

You might be surprised to learn that gas furnaces are significantly more affordable than oil-fired units.

  • Standard-Efficiency Gas Furnaces: These typically cost between $1,500 and $3,000, compared to up to $8,000 for standard oil furnaces.
  • High-Efficiency Gas Furnaces: Expect to pay up to $5,000, while high-efficiency oil furnaces can cost around $10,000.

Choosing a high-efficiency gas furnace can also make you eligible for tax credits and local incentives, helping offset some of the initial costs.

Cost to Hook Up a Gas Furnace

Installing a gas furnace involves more than just purchasing the unit. You also need to connect your home to the natural gas supply, which typically requires:

  • Running an underground gas line from the gas main to your house.
  • Digging a trench along the route for the pipe.
  • Installing a gas meter at your property.

On average, this connection and installation process costs between $1,000 and $1,500, depending on factors like the distance from the gas main and whether any upgrades are needed.

Other Costs to Consider When Switching from Oil to Gas

Switching from an oil furnace to a gas furnace involves more than just the unit and basic installation. Here are some other costs to keep in mind:

  • Chimney Lining: Gas exhaust contains moisture that can damage masonry, so you may need to line your chimney. This typically costs $800–$2,000, but it’s a one-time expense.
  • Total Installation Costs: Including the furnace, installation, gas hookup, and chimney lining, most homeowners spend $10,000–$12,000 for a complete gas furnace installation.
  • Adding Other Gas Appliances: If you plan to install a gas water heater, dryer, or pool heater, the total cost can rise to around $15,000 for a single-family home.

Benefits of a High-Efficiency Gas Furnace

All things said and done, switching to a gas furnace is worth it. Though the initial conversion costs seem high, with a high-efficiency gas furnace, you can enjoy long-term savings and environmental benefits.

With a gas furnace compared to an oil furnace, you can enjoy:

  • Lower carbon emissions 
  • Lower operating costs
  • Less required maintenance
  • Reliable performance, including consistent heat and steady temperatures
  • Faster heating
  • Quieter operation

If you are convinced about making a move to a gas furnace, Wolcott has your back. We have years of experience in installing gas-operated furnaces and will have the job done for you in a jiffy. Besides installation, we also provide furnace inspections, repairs, and maintenance. Call us today at (971) 253-7883 for an obligation-free quote.

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