Should You Switch from Oil to Propane Heat? Here's What You Need to Know

If you're heating your Western PA area home with oil, you've probably wondered whether propane might be a better option. As a propane supplier, we could give you a sales pitch. Instead, let's talk honestly about what's actually different and what switching really involves.

The Real Differences

Efficiency and cleanliness: Modern propane furnaces typically run at 90-96% efficiency, while oil furnaces usually operate between 80-90%. Propane also burns cleaner, which means less maintenance and no oil smell in your basement.

Delivery and storage: Both fuels require a tank and scheduled deliveries. The main difference? Oil tanks often sit inside your basement, while propane tanks are typically installed outside. If you've ever dealt with an old, leaking oil tank, you know why many homeowners see this as an advantage.

Price volatility: Both fuels fluctuate with energy markets. Propane prices tend to spike during cold winters when demand is high, while oil prices track more closely with global petroleum markets. There's no consistently "cheaper" option—it depends on the year and market conditions.

What Switching Actually Involves

Here's the part many articles gloss over: you'll need to replace your heating equipment. Your oil furnace or boiler can't just "convert" to propane. You need a new propane furnace or boiler, which is a significant investment—typically $4,000-$8,000 installed, depending on your system size and complexity.

You'll also need a propane tank installed outside (usually 500-1,000 gallons for home heating), which most propane suppliers provide at no upfront cost as long as you're buying fuel from them and meeting their delivery gallon requirements.

The old oil tank? You're responsible for having it properly decommissioned and either removed or filled in place. This typically costs $800-$2,000, and it's not optional—Pennsylvania regulations require proper abandonment of heating oil tanks.

When Switching Makes Sense

The math usually works when you're already replacing your heating system anyway—your 25-year-old oil furnace finally dies, or you're renovating and want the basement space that tank occupies.

It rarely makes financial sense to replace a working oil system just to switch fuels. The payback period on the equipment investment is simply too long for most homeowners.

The Bottom Line

Propane offers some real advantages: cleaner burning, no basement tank to worry about, and modern high-efficiency equipment. But switching isn't free, and it's not right for everyone.

If your oil system is near the end of its life, or you're dealing with an aging tank that might need replacement anyway, it's worth getting quotes from both oil and propane contractors. If your current system is working fine? You're probably better off sticking with what you have.

Questions about propane heating costs or whether it makes sense for your situation? Give us a call at Greco Gas 724-285-4787. We'll give you straight answers, even if that means telling you to stick with oil for now.