How much would it cost to replace a heating-oil system with natural gas?

When I got a new furnace nearly two decades ago, it cost 2k. I think they’ve doubled or tripled in price since then. Maybe 5–7K. Then you may have to dig up a trench to put in natural gas. That might cost 1–2K, depending on what you’ve got to go through. Oh, you’ve got to take our the old furnace. Depending on access and size of tank and whatnot, that could be $500 to 1000.

$6,500 to 10K. Pretty much the same as you.

If there’s already gas in the house, it wouldn’t be as expensive.

Gotchas: well, the furnace tank might have to be cut up to take it out if it’s in the basement. There could be environmental issues if the tank is outside. Make sure the furnace can fit through the access to the basement. Make sure it is large enough for the house. You can either get it big enough to heat the house on the coldest day, or not quite that large. You’ll be cold—a little—on the coldest days, but you save a little money on the cost of the furnace.

Did you notice a significant reduction in heating costs with natural gas? I was reading that it takes about 5 years or so to pay for the cost of the switch, is that fairly accurate with what you were paying or is that just marketing truth-stretching to encourage you to convert?

I really would like to get gas in my house eventually just for things like fireplaces, and stoves.

Also, this is the kind of upgrade that has tax incentives for right?

I had an estimate on this last year. It was about 10K to 11K, but this included the gas company putting down the lines to my house (I would have put in a new furnace and a new stove and maybe even a new water heater—enough for them to connect me up). There was some question about the venting of the new furnace, and that might have cost some extra, and I don’t think this included getting rid of (destroying) the old oil tank under ground on the property. I ended up not doing it.

When I moved into my present house and switched over from oil to natural gas the gas company gave me the furnace for switching. I don’t remember how much the actual switch cost (sorry) but at least check to see if there are any conversion deals like that from your gas company in your area. The furnace I got has been running just fine for 12 years in New England, no problems ever. Good luck.

I am not sure of the existing system or where you live. that info would help. Even without that info, here’s my take.
If the oil system is less than 10 years old and you live in a climate with fewer than 6000 heating degree days, leave it. It is 82% efficient already and it will take you forever (read never) to pay off the difference. Just have it cleaned every year.

Let’s assume you have an old unit, live in a northern climate and have trees in the area.

I’d recommend getting a high efficiency, 97%+ system that can use a 2–3” PVC pipe for the flue. Then you can use your existing flue for an airtight wood burning stove which you will install the following year. $4000. You will have the best of both worlds.
Figure $8,000 for a full gas system including the gas lines if you don’t live too far from the road.
Stay warm.

I’m house hunting, so I can’t give you specific information on any particular system since I’m looking at potentially buying one of several houses. The area I’m looking is in Richmond, VA. We usually have relatively mild winters (lows typically in the upper 20’s to 30’s). Like I mentioned above though, I am interested having gas in the house anyways for things like the stove, fireplace, grills, possibly a tankless water heater, etc.

Richmond VA?! Oh Puhleese! You don’t have winters there! Your typical heating season is 3800 HDD. Half of ours. If you are looking at an average 2200 sq ft, reasonably well insulated home you can expect to purchase 400 gallons of heating oil for the entire year. (Ask to see the bills.) At $3 per gallon that is $1200 per year. Going from 82% to 97% will only save you about $180 per year.
If you want gas for other reasons then it’s up to you to decide how much value you put on the blue flame.

@worriedguy and everyone else, thanks so much for your valuable input. I’ve never owned a home before, so I’m just scared as hell of making an expensive mistake. The thought of having a giant container of heating oil next to my house (or buried next to it) really makes me nervous. I’ve seen a tv episode where the homeowner had a leaky heating oil container, and it was a MAJOR deal, the government had to get involved I believe, with excavators and cranes—it was a nightmare. Also, the expense of swapping out the units themselves doesn’t seem so bad, if I’m going to bring the gas in anyways for other things.

You have given me much to think about though. Perhaps this is an upgrade that I should hold off on—although there’s an argument to be made that if you’re going to do it anyways, it would make sense to do it sooner rather than later.

@gorillapaws You may be new to this but you are asking the right questions.
(First let’s define HDD- It is the average of the high and low temperature of the day subtracted from 65F. If the temperature stays at 30F all day that is 65–30= 35 Heating Degree Days. Add up the numbers for every day and yo get the value for the heating season.)
I have been pushing for a fuel economy figure for homes for years. For example: My home fuel economy is 8 Heating Degree Days per Gallon of oil. that means on a day when the temp is 33F my HDD is 65–33=32F I will use 32/8 = 4 gallons of oil. You can do this for Gas too, e.g. 6 HDD/therm. You already know the mileage you get on your car. 30 MPG is better than 15 MPG. Why don’t we know that for our homes? Sure there are lots of variables but there are lots of variables with your car too. Would people be so willing to buy the 3500 sq ft McMansion with the cathedral ceiling if they knew it only got 3 HDD per gallon? If that house was where I live (my winters are around 7500 HDD) it might take 2500 gallons to heat that house at $3 it comes to $7500 just for heat. What happens when oil or gas goes to $6 per gallon? They will pay $15,000 per year just for heat!
Maybe we should be downsizng and insulating homes instead of buying ever larger ones like shown on HGTV. They don’t discuss heating or cooling costs on HGTV – only granite counter tops and the nice view .
This analysis works for hot climates too, only the magic number is CDD Cooling Degree Days. (Same method as above but subtract 70 from the average temp). The cooling season in Richmond was 1583 CDD last year. That will tell you how much you need to run your A/C. Where I live our cooling season is only 300 CDD. We don’t need A/C. What we save on A/C we spend in heat. I heat with wood and get it free from my own land. I get exercise without going to a gym, too. I figure that is a win-win.

Welcome to the world of home ownership.

I’m pretty sure the zoning laws here where I live say that type of work has to be done by a licensed contractor. I would never trust such a job to a friend of mine who can help.

@YARNLADY he’s licensed.

@gorillapaws Oh, that’s different – you’re lucky to have such good friends