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Understanding the Costs of Switching from Oil to Gas Heating in New York

April 01, 2024

If you're in New York and thinking about changing your heating system from oil to natural gas, you might wonder about the cost. It's not a one-size-fits-all answer, but for most houses, the price ranges from $22,500 to $30,000+ depending on factors we’ll cover below.

The size of your home is just one component of the overall cost. Several other factors can affect how much you'll end up paying for an oil-to-gas conversion. In this blog, we'll explore key factors that could apply when doing a gas conversion, including:

  • Adding a gas line
  • Chimney venting
  • Additional expenses (permitting & inspection fees, removing the old tank, updating appliances, etc.)
  • Considerations for NYC residents
  • Choosing the right contractor

Switching to natural gas isn't always the best or most cost-effective option for everyone in NYC. Our heating experts can help you determine the most efficient and affordable way to heat your home.

Have questions about safe and affordable heat? Call today!

At Ranshaw Plumbing & Heating, we're always on time to provide an estimate for oil-to-gas conversion services and answer any questions you might have. Our dependable quality and upfront prices mean you get reliable, long-term heat and no surprises.

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Adding a Gas Line

Do you have an existing gas line in your home? If all of your appliances are electric and you don't see a meter, that may mean natural gas was never connected to your home.

Chimney Venting

Switching to a standard efficiency gas-powered furnace means investing in a chimney liner to protect your masonry. Installing a liner is important to prevent more costly repairs in the future.

Additional Expenses

Permitting & Inspection Fees

Any time you make changes to or install natural gas lines, you need a permit and an inspection to check the work. At Ranshaw Plumbing & Heating, we take care of filing all necessary permits and are on hand during all inspections from the NYC Department of Building and Gas Utility Company.

Removing the Old Oil Tank

If your oil tank is out in the open and easily accessible, it won't add much to the cost of your oil-to-gas conversion. For example, your oil tank is above ground and outside your home, or your tank is in your basement with wide door frames and staircases to exit the basement.

However, in many New York City homes, these tanks are hidden in a crawlspace or underground (occasionally), making them difficult to access and sometimes requiring additional steps to remove.

Updating Appliances

Gas furnaces cost a lot less than oil furnaces, so updating the unit is one of the ways to help make this process more affordable. If you're replacing your old oil furnace with a new gas version, the $8,000 you don't spend on the oil furnace can go a long way toward offsetting the conversion cost.

Considerations for NYC Residents

New York City is unique in many ways, extending to the city's policies on burning fossil fuels. Below are several things that might impact your decisions about what type of furnace to install.

Availability of Natural Gas

If you can't get a gas line installed at your location, that's it. It's best to switch to an electric furnace instead.

Financial Incentives

Several incentive programs are available for those switching to energy-efficient heating systems, but if you want natural gas, it's best to act quickly. New York State recently passed a law that bans the use of natural gas in new construction. While that won't impact your existing home, it may be a consideration for future home remodeling/renovation projects.

Environmental Impact

New York City is working toward carbon-neutral operations to help improve local air quality. The city has already begun the phasing out of No. 4 fuel oil, and the statewide ban applies to both oil and gas. In general, natural gas burns cleaner than oil, and a high-efficiency unit can turn as much as 90% of the fuel into heat, helping to reduce your carbon footprint.

Choosing the Right Contractor

The contractor you choose often plays the most important role in determining your original cost for an oil-to-gas conversion. However, remember that choosing the cheapest option might also mean higher costs down the road. Make sure you work with a company with the experience to get the job done right.

Considering an oil-to-gas conversion? Contact Ranshaw Plumbing & Heating!

With 60+ years of experience working on oil-to-gas conversions and other heating updates, we're always ready to get started. Our customers routinely leave us 5-star reviews (4.8/5 stars on Google) due to our honest, upfront pricing and meticulous work.

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