Switching from Oil to Natural Gas or Electric?

Question

Hello! I recently purchased a duplex in Reading PA. The top unit is electric baseboards, but the bottom unit is oil - hot water heat. I do not want to put the high costs of oil on the tenant and would like to convert to natural gas or electric ASAP. I was originally considering natural gas. There is an available gas line and UGI will hook up for free, I just cover the furnace install. However, the turn around time for this is up to 12 weeks, if it gets approved by the borough.. I would like to convert sooner than that to avoid the high oil heating costs that will come this winter.

I am seriously considering heat pump/mini splits. I rented a unit before that had them and my electric bill was relatively low in the winter months. Then there's electric baseboard heat.. I am looking for the most cost efficient and timely option. I am willing to spend a little more if it means lower utility bills for my tenants. I have two estimates scheduled for this week, but if anyone has any idea of pricing for this please let me know!

This is a 1 bedroom unit and is around 500-600 sq ft. And also, I have 2 100 amp panels - one for each unit, would this need to be upgraded?

Thank you so much for your help (:

Mark J. · Answer

@Hannah Costello Curious what you ended up doing here?

I currently have a 2 unit on oil heat, 1 thermostat, shared ducts, so I have to foot the entire bill and it's killing my revenue in the winter, costing $1000 some months.

I've looked into converting to gas and into installing electric baseboard heaters.  Both options are right around $7000.  With the electric baseboard heaters I wouldn't have to cover any of the monthly heating expenses, so financially it's a win, but I do worry about the inefficiency, and the high cost the tenant will have to pay.  With the gas I have to shell out the $7000 and continue paying the heat bill for both units, though less than oil, it's still fairly significant during winter months.

I'm not sure what to do here.  I did ask the HVAC company about mini splits and they said I'd be looking at about $20k total, so that's not really an option.

Another thought is I could try to have the tenants split the gas heating bill, but not sure if this is feasible or legal.

Anyone have any suggestions here or done something similar?

Anna Washburn · Answer

@Hannah Costello great discussion! Please keep us updated with you decision.

Bruce Woodruff · Answer

They are similar to heat pumps in that they become less efficient at cold temperatures. There are high efficiency models that work even down to 5d. You can get heat pumps that have auxilliary heat strips that kick in when it gets below about 18d.

They are very efficient in heating/cooling simply because they only need to be operated in the rooms that are occupied. But if you are truly on the 'Green' quest, then remember that anything that uses electricity is largely powered by fossil fuels anyway, usually between 65-90%....depending where you live.

Natural gas is pretty clean. But the only truly 'green' option is to run a heat pump off a large solar system.

Taylor L. · Answer

Years ago I lived in a small property with mini splits. They can be great. However they do need regular service to make sure condensate pans and drains are working properly. They have the bonus of being able to provide both air conditioning and heat.

I'd go mini splits, but get estimates for a few options. Again, mini splits can also provide air conditioning, which is a huge bonus for tenants and should help your rental rates quite a bit. I moved away from PA many years ago now, but from what I recall it does get hot in the summer!

Hannah Costello · Answer

@Bruce Woodruff and thank you for the info!

Hannah Costello · Answer

@Bruce Woodruff I do care about that. However, I keep seeing stuff about mini splits not being good for colder climates like PA.. what do you think about that?

Hannah Costello · Answer

@Travis Timmons this is great info!! Thank you. I know some of the electric companies give rebates, I will look into that and the financing.

Bruce Woodruff · Answer

Mini splits are the most efficient and 'green' if you care about that. You only heat/cool the rooms you are using....

Travis Timmons · Answer

I can't speak for the furnace replacement, but if you do heat pumps, you can get 0% financing through the National Energy Improvement Fund. I'm not sure about PA, but the state of Maine gave an $800 rebate/incentive check for heat pump installation as well. The pricing on that was $3900 all in with an $800 check from the state...just to give you an idea on heat pump cost.

Switching from Oil to Natural Gas or Electric?

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