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Evaluating Your Options

The indicator below shows whether there is a clear difference in cost efficiency for the indicated fuel. If one fuel is presently much less expensive (more than 6% differential), the indicator will show green. If you have a multi-fuel system, it should save money to flip the switch to that fuel at this time. If you are wondering if you should convert your furnace from oil to gas or propane or install a more efficient furnace, you can use the chart below to figure your savings!

Natural Gas Oil Propane
     

Green = preferred fuel, 6% savings average or better

Grey = neutral

Red = currently at least 6% higher than the others

(Indicator changed in October 2008 due to quickly falling home heating oil prices and lagging high prices on Natural Gas and Propane. Rating based on oil purchased at time of indicator change - see chart below for approximate guide showing spot oil prices (wholesale - not retail) below levels one year ago. Actually price "at the oil pump" will reflect rates for when those oil futures were purchased, or when the oil itself was purchased. As of May 2009, oil is still running below gas and propane in cost for equivalent BTU. However, expect rises in oil prices for the summer and fall as OPEC and oil refiners gain control of a market that finally bottomed out in spring 2009.

Please note this indicator is based on average fuel cost and average burner efficiency for that fuel. Use the chart below to figure a more accurate indication for your own system if you want to be sure. Note that other charts available on the Internet do not include the overall costs of fuel delivery for gas.

For this month's spot prices on oil click here.

 


Fuel Comparison Tool

Fuel Type

Bill Total

Units Purchased

Efficiency of Furnace

If unsure, enter 75

Click

Real Cost

Dollars per kilowatt-hour
Oil $ Gallons: Efficiency: % $/KWH:
Gas $ Therms: Efficiency: % $/KWH:
Propane $ Gallons: Efficiency: % $/KWH:
Electricity $ Kilowatt-Hours (KWH): Efficiency: % $/KWH:

Using the Fuel Comparison Tool

To use this helpful fuel price comparison tool, you will need your last energy bill. First, find the type of fuel you use in the leftmost column, titled Fuel Type. Then, using your last energy bill, enter the bill total into Bill Total box in the correct row.

Then look for the total number of units of fuel you used. The example below shows a sample bill for Gas, which is measured in Therms. For this example, we would enter 19 into the box marked Therms. Oil is measured in gallons, as is Propane. If you use electricity, you'll need to enter the quantity of kilowatt-hours (KWH) used. Gas users please note: Do not use the rate quoted per Therm. This is irrelevant. The real cost of gas heat is measured to include all service charges, etc. That is why you enter the total amount billed, and the total Therms used, to get an accurate rating.

Finally, enter the approximate efficiency of your furnace, as a percentage. There's no need to use the % sign, however; just enter in the number. If you don't know your furnace's efficiency, just use 75, and it will still help you compare the different fuels against each other.

When you have finished, click "Calculate" to see your cost in dollars per kilowatt-hour appear in the rightmost column, titled Real Cost. The higher the number, the more expensive the energy source is at this time.

To compare this fuel with a different fuel, simply fill out another row in the form and click "Calculate" and compare the two costs. You can compare as many different fuels as you like, and you can change the numbers and then click "Calculate" again to get a new total. Or, you can compare your current furnace to a new furnace by changing the efficiency rating.

National Grid bill

Summary:

If you have a dual-fuel furnace, the chart and indicator above can help you determine when you can save money by switching fuel sources. If you are considering changing from one fuel to another, or installing a newer, more efficient furnace, you can use the chart to see if you would be better off with oil, gas or propane at the new efficiency level.

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