electric vs oil costs

15 years ago

I hope someone can confirm I am on the right track with some cost comparisons.

Electricity is costing us 14.3 cents/Kw (after taxes and all thanks to MD deregulation and 118% price increase)

New oil contract due sets $5.69 cap- yikes! if I sign.

We have a heat pump with oil furnace and some other supp electric heat (baseboard and oil filled space heaters that were not used).

At $5.69/gallon and assumig 70% efficiency for oil furnace,138,690 btu/gallon, 3,411 btu/Kw, I get 19.9 cents/Kw or 17,000 btu per $1 for oil. For electric, I know the rate is 14.3 cents/Kw or ~ 23,850 btu/$1.

It looks like heating oil would have to drop to ~$4.10 to be comparable to our electric rates and heat pump ought to be more efficient than just straight electric.

I don't have the oil #s in front of me, but seems like we might have used 60 gallon/month during heating months. We ran oil more as it was warmer faster and seemed to run less, but might try going all electric this year given the high price of crude and heating oil. If my numbers are close I'm not inclined to sign a contract and service agreement based on past usage, but pay the spot price if needed and only run it when it is like 20F or below. We have a thermo switch that would kick the oil on at a set outsied temp. At $2.49/gallon, we overode the heatpump last year (set at 40F) and ran oil almost exclusively, but it looks to be expensive to do so this year if the #s I found aren't garbage.

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Comments (4)

ky114
15 years ago
Yes, your numbers are right, and you are, as you know, taking electric at the straight resistance rate, not even allowing for the efficiency of the heat pump -- a good, conservative approach -- but the heat pump will in reality be at least twice as efficient as resistance.

So there's no weather where the oil is going to be cheaper at $5.69/gallon. Your only challenge will be to make sure you don't start tripping breakers with all of those plug-in heaters. In your situation, I might want to see if it would be feasible in your furnace to put in some electric strip heaters for your backup heat rather than using the oil furnace. Then you wouldn't have to buy a drop of oil. Alternatively, you could put in some electric baseboard heaters (on dedicated circuits).
tigerdunes
15 years ago
kurtg

I like to use the attached fuel comparison calculator to get a good guide for various fuel type costs.

Punch your numbers in. For COP on new high eff heat pump systems, I suggest 2.75 which is a conservative number. The results are a real eyeopener and as ky said, electric resistant baseboard heat is less expensive than oil.

see calculator.
The question of dropping oil and going straight high eff HP system is really a no-brainer.

I would even check with your electric utility and see if they offer any rate incentive for straight HP heating.

IMO

Here is a link that might be useful: Warm Air Fuel Comparison Calculator
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Ok, I took a standard electric water heater that the Energy Guide says will cost about $411 a year at 8.6 cents per kwh and converted that to 7.0 cents and came out with an estimate of $334 per year. The estimated number of kwh per year for that same scenario is 4779 kwh or about 16310727 BTU's number 1 fuel oil is about 134,000 per gal and If we guess the burner is 50% efficient in the summer it comes out to about 243 gals of oil for the year or $579. Your stated use is $540 a year so I'm guessing my calculations aren't far off. So: You could reasonably expect to pay $334 for electric (or a little less) or about $540 for oil. Now, you would need to get an estimate on the installation of an electric heater. I would recommend that you get one with 2" of insulation (fairly mainstream) and add a blanket to it for $20. This is much cheaper than buying a super insulated heater. A 50 gal GE "Energy Smart" heater, for example, is $340 at lowes. (that's not an endorsement-- just an example) For a small family, 50 gal should be fine unless you have a large tub, for example. Your installed cost will be higher because you will need to have the electrical run to the heater. Nonetheless, the savings will be about $200 a year and you will have hot water. I wouldn't put much more thought into tank life, etc. It will last about 12 years. When it's time to replace it, the replacement cost will be much less because the plumbing and electrical will be in place already. Here is a link that might be useful: Electric water heater
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kurtg
Original Author
15 years ago
Thanks-
I liked the link too. Definately not doing oil this winter. We will try to max out the heat pump and use the baseboard as needed.

Should have no problems with the circuits. We have a pretty heavy service and the prior owners installed the current heat pump after the baseboard downstairs (no prior ducting). I just disconnected it when our inlaws were living with us as they kept putting flammables near the heaters and had the thermostats on all the time even with the heatpump/oil running. I didn't run the baseboard at all last winter (they moved out now) and the temps were fine.
funnycide
15 years ago
I would agree with your conclusions. The only thing I would add is a typical oil burner runs around 80%. So unless you have an old junker I would use 80% when comparing.

electric vs oil costs

Comments (4)

ky114

tigerdunes

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kurtg
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funnycide

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electric vs oil costs

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ky114

tigerdunes

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kurtgOriginal Author

funnycide

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kurtg
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