Technology is changing all the time. Decades ago, many people changed a heating source just by changing the burner unit inside. But these conversions resulted in low efficiency rates. Few people would be satisfied with an efficiency rate of 70% today when a new system can produce 92% or better.

The age and type of your building are important

If you have an old building with a furnace system built 30-50 years ago, chances are your system is bulky and has many more parts than a system designed recently. You may have difficulty removing or converting a truly old system, so factor that cost in to your payback (the length of time it takes to return your investment).

Also, if your building is leaking energy through the windows and walls like a seive, don't bother to invest in a new system or improvement until you make your building efficient at retaining that heat, or cooling.

Be careful of extravagent claims for new window systems, etc. The amount of heat lost through the glass is generally only a fraction of that lost by loose air movement. Plug the holes! Refer to consumer guides for inexpensive ways to stop the major energy leakage through your building. Don't waste money trying to save energy until you know which expenditures will really pay you back.

On newer buildings, the choice is often not between an upgrade or new systems, but converting to a different fuel source to save money, or adding capability onto an existing system to either make it more efficient, or take advantage of multiple fuel sources. There are many ways to tap into lost heat or add on alternative fuel capability to save money with a fairly quick payback. We can make some good recommendations on some of these new technologies if we can look at your building and see what is there, and what can be done. What will save money in one building may not work in another building.

Here are some references for ways to save money by simple home improvements, including tax credits and rebates:

• Finding the air leaks and fixing them - a government guide
• Performing an energy audit - Ranco is a qualified energy auditor using the latest technology
• Consumer Reports offers a number of ways to improve your energy efficiency at home
• Federal Tax Credits were available until 2007 to help you get money back on expenditures for energy-efficient home improvements; watch for a bill entered in 2008 that will return most of these credits if passed

Your choice of fuel source

If you study graphs of fuel costs over the last 20 years, it is easy to see that there is no "magic fuel" that has outperformed all other fuels all the time. There is also no reason to believe that the next 20 years will be different. Oil price bubbles rise high and fast. Speculators buy in until the fundamentals of supply and demand no longer apply. When the prises rise too high, speculators switch over to gas and other fuels that now seem underpriced. Utilities and other fuel suppliers can legally raise prices when they even suspect that futures will rise, so it isn't long gas prices match oil for the amount of heat produced. Then the speculation bubble breaks, and oil is the first to drop for consumers, having the shortest pricing cycle. So for a time, oil is cheaper again. In 2005, for instance, oil heat was 25% cheaper than gas most of the winter season. Now it is more expensive.

The modern strategy relies on two factors, mostly-- equipment that delivers extreme efficiency so that any heat source you use will reduce your bills from what you are paying now, and flexibility of heat source choice. That means, having different ways to heat the same area, or having different ways to heat different areas. Whay would this make sense? You would not want to heat a free-standing sun porch that has no insulation under the floor the same way you might want to heat a well-sealed three-story home that can take advantage of heat transfer through the floors. Or, you may want a dual-fuel system or even a three-fuel system, that allows you to switch sources anytime one is not working as well..

Cautions about fuel choices

In 2008 there is now a rush on to convert homes to gas heat, by homeowners that assume that the high price of oil must be costing more to heat their homes than gas. However, if homeowners were to look carefully at their gas bills, they will find such items as a "gas delivery charge" currently at $1.25+ per therm that is effectively doubling their fuel cost, and raising the therm price to over $3.00 when you factor in service charges and all costs. The truth is, gas utilities are allowed to employ emergency measures to raise their prices on the fly to match that of oil. As of this writing, there is less than a 10% differential in the cost of oil versus gas to heat a home at similar furnace efficiencies. And electricity rates are surprisingly efficient in comparison to a decade ago! You need to look carefully before you leap.

Also, there is a real danger that at the rate homes are converting to gas, gas pressures will drop in many neighborhoods during prolonged cold spells. Something few home owners understand is that gas is a shared-pressure system. Like cable Internet, the more homes in the area that share the service, the slower the service becomes. It is possible for gas pressure to drop to 20-40% of normal and not provide enough BTUs to heat your home in a severe situation, which is exactly when you need that heat!. Oil systems are independent in each home and do not have this issue.

Ranco strongly recommends looking at duel- or triple-fuel systems, for the rough times ahead for fuel in the USA. This provides comfort and security and best economy for the life of the system. You simply monitor the going prices for fuel, which you can do via our website, and know exactly when to switch sources. All you do in most cases is flip a switch. If gas pressure drops in a cold spell, you can use your backup fuel to be comfortable.