Ranco provides this overview of different technologies today to help you compare. Only a true energy audit of your building can determine what system or combination of technologies will be the most effective for you in the long run.

Ranco looks at the total picture for your building's energy needs. History has shown that no single fuel source or heating system is perfect for all dwellings and climates. Typically, gas companies will claim that gas is always cheaper, oil companies will claim oil generates more BTUs for less money, and proponents of other systems will make similar claims for their fuel sources. Consumers are rushing to convert from oil to gas or dual fuel systems, but few consumers are sure what information they are basing these decisions on.

So how do you determine how to heat and cool your home or commercial building with the most efficient system and fuel, in every climate, year after year? Here are some tips and technologies to consider.

Rule #1: There is always a price to pay for convenience

The cheapest source of fuel for your home at this time is wood. Wood is the lowest-tech, most abundant, time-honored method by which to heat a home or business. Coal, a commodity similar in some ways to wood, is another alternative, except that coal is usually undesireable for ecological reasons.

Wood is generally not the heat source of choice, simply because of convenience. Americans don't want to fill a chamber with wood or wood pellets regularly, unless it is a decorative fire that gives aesthetic enjoyment. Europeans developed a number of technologies using wood as fuel, and super-efficient wood burners that are at least semi-decorative could heat a 1200 square-foot home using 6 logs a day even 30 years ago.

Today, wood pellet burners and other technologies have "commoditized" wood to a more convenient heating method, and there can be no argument that wood is still, and may always be, the cheapest way to heat. However, wood is the most "interactive" of heat sources and will always require labor to load the fuel, clean the ashes, etc., no matter how modern the system. This is why many people choose wood pellet technology as a supplemental source for their energy needs, so they can switch to a less interactive source whenever they want.

Wood pellet burning technology can be installed as a main source of heat or in a multi-fuel system. Ranco can advise you on the best technology for your dwelling.

Here is a central link site that can connect you to many learning resources and technologies involving wood and other similar fuel combustion sources (corn, etc.)

www.ecobusinesslinks.com/wood-pellet-burning-wood-pellet-boilers.htm

A link to a typical manufacturer of stand-alone wood pellet stoves:

www.dansons.com/about-dansons.htm

As we move away from wood to more convenient fuels, to see how Rule #1 is applied, let's look at Propane. Propane is a clean fuel that is usually purchased by the gallon or delivered to your dwelling in larger containers, or pumped into your container. The price of Propane is thus affected by the labor and delivery method. Propane has historically been a cheap sorce of energy that is hauled by people to their own locations in containers. Again, a fuel that requires user interaction is generally cheaper.

However, Propane is flawed by the fact that it is by-prodct of refining. It's supply is limited. If people turn to Propane during times of high oil prices, the price of Propane skyrockets. Today's current price of Propane due to high oil futures prices makes Propane less economical than either gas or oil as a main fuel source. Here is a government-sponsored link to explain how this process works:

www.eia.doe.gov/bookshelf/brochures/propane/index.html

Residential #2 home heating oil is a common heating source. Its high BTU release makes it superior to gas in generating heat. In normal times, oil competes nicely with gas or other fuel sources because of its higher BTU release, despite typically lower efficiency burners. Oil prices are typically kept in check by competition among suppliers, and the inconvenience of having to call for oil or continually refill a tank is balanced by the freedom to choose suppliers, relative safety of oil heat (much less apt to combust violently), and the fact that it is an open market commodity. However, OPEC changed much of that, and when prices spiral out of control, and speculators jump on the bandwagon, oil prices can go through the roof fairly quickly.

So we can see that oil heat requires some user intervention and can sometimes be less convenient than that steady stream of gas that few people ever think about or worry about if they have gas heat. Thus, it can often be more price competitive than people think. In 2005, for instance, oil spent most of the heating season at a price differential of 10-15% less than equivalent BTUs of gas.

Converting from oil to gas, is it always cheaper?

Gas heat is considered by many to be the ultimate convenience, and the cheapest of the easily available fuel sources. People assume that they will save money if they convert from oil to gas heat. However, Rule #1 causes gas to be less competitive than people think. When people move to gas during times of oil heat price increases, they seldom realize that gas utilities are allowed by law to increase prices based on expectations of costs that are well into the future. That means that you could be paying for today's price of oil if you buy oil today, but be paying for the price of gas 6 months down the line if you buy gas today. And historically, these speculative increases by gas utilities seldom go down when the market changes, whereas oil reacts very quickly.

In the end, the lesser BTU capacity of gas and speculative price increases by utilities result in few periods of time when gas is actually cheaper than oil or other alternatives. The very convenience of the gas delivery method is also the captive-audience device that results in punitive price increases, extra delivery charges, and unrelated add-ons that increase the gas bill well beyond the quoted per-therm price. Convenience has its price!

95% efficient Goodman gas burner

AVAILABILITY ISSUES

Any fuel that is brought into your home via a container or truck is subject to disruption in delivery due to weather, availability, and local conditions. However, any centralized fuel source such as natural gas is subject to accidents to tankers or tank storage depots. At one time a tanker carrying natural gas sustained an accident and threatened to leave 100s of thousands of Massachusetts home without gas. You have to decide which mode of delivery worries you less about disruption.

Some fuels are affected by physical availability issues that would seem to have nothing to do with the fuel itself:

Propane is subject to the demand for it and the volume of petroleum being refined. Sudden fluctuations in supply and demand can cause prices and availability to skyrocket.

Wood pellet sellers are already posting notices that their supply of wood pellets will not meet the demand in 2008-2009, so they advise you to buy early.

Gas is a common-delivery fuel. Like your cable TV and water, it comes through a pipeline that loses capacity the more users place demand on it. That means if enough people convert to gas in your neighborhood before the gas company can upgrade the size and pressure of the pipes, a cold spell could leave you with inadequate pressure to heat your home. Gas' low BTU capacity makes it a poor fuel in low-pressure delivery scenarios. Homes may have trouble keeping at 65 degrees during time of peak demand if the current rate of conversion to gas continues.

Oil is subject to the quickest fluctuation in price due to changes in commodity prices.

Considering the current volatile climate for fuel pricing and availability, Ranco can advise you on the best equipment options. Choosing the wrong fuel source can be a decision that can cost you thousands of dollars more if you are buying the wrong technology for your situation.

Ranco Enterprises offers free evaluations and can perform an energy audit of your home or business and show you why certain choices would be your best investment, or why a multi-fuel system could work wonders for you if you pick the right fuel sources for your location, lifestyle and BTU needs. And, you can use our interactive fuel cost comparison guide to check your best fuel cost or compute your savings at any time. We do not favor any one alternative. We help you find the best alternative for your needs.

Call 781-395-7178 today for a free consultation!