What is the Average Price of Replacing an Oil Furnace with Gas?

Many homeowners with oil furnaces consider switching to a gas when it’s time to replace the furnace.  There are advantages to gas including higher efficiency, less maintenance of the furnace, and lower fuel bills.  However, the cost of making the switch is always a concern.  What is the average price of replacing an oil furnace with gas?

This guide takes a look at the costs involved in replacing an old oil furnace with a new gas furnace.

The Cost of Gas Furnaces

You’ll find that oil furnaces and gas furnaces are comparably priced, though the most expensive gas furnaces cost more than the most expensive oil furnaces because they offer more features.  But for the same money, you’ll get a gas furnace that is more efficient and one that offers greater home comfort.  For example, oil furnaces have single-stage burners but many gas furnaces offer 2-stage burners, one of the keys to creating balanced, comfortable temperatures throughout your home.

Depending on the size furnace you need, the efficiency level you choose, and the features you want it to have, your gas furnace will cost $1,000 to $4,500 for the furnace. The average cost for just the gas furnace is about $2,400.

The Cost of Furnace Installation

Standard installation of just a furnace will cost, on average, $2,200.  If the job is a simple one, such as installation in a first-floor utility closet, it might cost less.  If the job is tough, such as installation in an attic or cramped crawl space, it might cost more.  If you’ve got good DIY skills and can remove the old furnace first, that will reduce your costs for installing the new one.

Furnace Installation Extras

It’s very likely that when you replace an oil furnace with a gas furnace you’ll have to change the furnace plenum.  The plenum is the sheet metal that connects the furnace to the duct work.  Plenums cost, with installation, about $250.

The venting flue for the furnace may also need to be replaced.  If the same pathway can be used through the roof, the cost will be less than $200.  If the new flue needs to be larger, or be run out the side of the house, the cost will be higher.  Typically, the old path for the flue can be used.

The last extra expense is gas line. The cost of running gas pipe to the furnace inside your home will cost $100-$300 depending on the amount of pipe and the difficulty of the job.

The larger cost may be tapping into the natural gas line.  Some utility companies charge $1,000 or more to run a line connecting your home to the gas line that runs along the road.  Check with your local natural gas provider about their fees before you start the project so you know what to expect. If you switch to a propane furnace, the cost of running line from the tank to your home will be considerably less than $1,000 in most cases.

Total Cost for Replacing an Oil Furnace with a Gas Furnace

The cost of the furnace and basic installation is going to be very comparable whether you choose oil or gas.  The average cost of a furnace and installation is under $5,000.

Switching the fuel source from oil to gas is where the added expense comes in.  For sheet metal work, gas line, venting and connection, your extra costs will range from $500 to $2,000, possibly more depending on the cost of connecting to the gas supply.

Work with your furnace contractor to determine what your fuel cost savings will be for a typical heating season.  Estimate how long it will take a gas furnace to pay you back for the extra expense.  That will help you decide whether it makes sense for you to replace your oil furnace with a gas furnace.  For most homeowners, the switch makes good economic sense.  In addition, having a more comfortable home with a gas furnace is an attractive incentive to make the change.

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