The following article will compare and contrast two of the most popular “alternative” methods for heating a home, the heat pump and the oil furnace. We refer to them as alternative methods because they are considered more environmentally friendly and more efficient than more established options, such as natural gas or propane furnaces. Nevertheless, both have gained popularity in recent years, leading many to wonder which heating system will come out on top when deciding between installing a heat pump vs. an oil furnace in their home.
To come to our ultimate conclusion, we’ll examine a few of the most important factors that homeowners consider when they’re looking for ways to heat their homes.
How an Oil Furnace Works
Most oil furnaces rely on traditional forced-air technology to circulate air throughout a building. This is how most heating systems in recent decades have kept homes warm. The heat is generated by burning some type of fossil fuel source (in this case, oil).
In an oil furnace, the oil that is used as a fuel source must be stored somewhere outside the building in a tank. This means, if you want an oil furnace to heat your home, you’ll have to pay to have the oil delivered. When the system is switched on, it is pumped into a combustion chamber and burned. As it burns, the oil releases its stored energy as heat. A device called a heat exchanger can then transfer this energy into the air.
Fossil fuels, such as oil, generate harmful byproducts, including the dangerous gas carbon monoxide, as they are burned. This means that, wherever your furnace is installed, you must have an adequate ventilation system in place to prevent toxic chemicals from entering the home.
How a Heat Pump Works
Unlike oil furnaces, heat pumps do not rely on combustible fuels to generate heat. Actually, they don’t rely on anything to generate heat (other than the sun). They simply absorb and repurpose heat that is already present in the environment.
Heat pumps are powered electrically. The energy they draw is used to operate an outdoor compressor, which contains pressurized coolant coils. The coolant in these coils absorbs heat from the outside air. It can then be pumped (hence the name, heat pump) into an indoor unit, where it can be released into the home.
While oil furnaces generally rely on forced-air systems to circulate heat, in general, heat pumps are really not large enough to effectively utilize this technology. Instead, they rely on the principle of convection to transfer heat directly into a given area.
Because they’re often smaller than other home heating methods, heat pumps usually work best in smaller buildings or single rooms. They can be installed in larger homes as well, although bigger buildings usually require multiple heat pumps to operate at the same level as a forced-air, fossil-fuel heating system.
Which Is More Efficient?
When it comes to home heating, the heat energy that’s used is measured in British Thermal Units, or BTUs. The more BTUs a system can generate, the more effectively it can heat up a given area. A system that can produce more BTUs using less energy is referred to as more efficient.
Looking at it on its own merits as a fuel source, oil is extremely efficient. As we mentioned above, it burns extremely hot, meaning that a great deal of heat energy can be transferred into the home using relatively little oil. This makes it excellent for heating large buildings quickly.
In the heat pump vs. oil furnace debate, however, the heat pump still wins handily when it comes to efficiency. This is due to the simple fact that it doesn’t require a combustible fuel source at all—just enough electricity to run its compressor and other electronic components.
What Does Each One Cost to Operate?
When it comes to determining operating costs, it’s somewhat difficult to compare heat pumps to oil furnaces. As we’ve mentioned, heat pumps are often utilized in smaller spaces, which, of course, usually cost less to heat in the first place.
For this reason, we can’t directly compare the average cost of running one of the heating systems. Instead, let’s look at the cost to generate one million BTUs. Oil heat, on average, costs around $38 per million BTUs, while a heat pump costs an average of around $15 per million BTUs, leaving heat pumps the clear winner.
Choosing the Right Heating System for Your Climate
Climate is another key consideration when deciding which system you’ll choose to provide heat for your home. We’ve stated that heat pumps are less expensive to operate than oil furnaces or other fossil fuel systems, however, the fact that they rely on the heat energy that is already present in the environment means that they may struggle greatly in especially cold climates, where there is little heat energy to be had.
If you live in a particularly cold part of the country, an oil furnace may be your best option for generating a large amount of heat quickly. If you live in a more temperate climate, however, then a heat pump may be your best option. Note that you can still take advantage of a heat pump in colder climates and just rely on a different method for the coldest days of the year.
Installation
Another important consideration you’ll need to make when considering a heat pump vs. oil furnace or other heating options is the cost (and convenience) of installation. According to Forbes, the average cost of installing a heat pump is around $5,500. This means that while you may save money on your monthly heating bill, it may be quite a while before the system ends up fully paying for itself. It’s also crucial that you have your heat pump installed by a professional who is experienced in the task, from an established company like Entek HVAC.
Nevertheless, an oil furnace can cost even more to install, averaging at least $6,425. Therefore if all other things are equal, and you are truly starting from scratch with a new heating system, then it’s possible that choosing a heat pump may still be the most cost-effective option for you.
As a final step, discuss both options with your local HVAC company to find the best furnace for your home.
