Our 10+ year old oil-fired water heater (Bock 32E) is acting buggy, so we're getting it replaced. My plumber is going to replace it with a new Bock 32E, along with a new burner too. I'm choking a little bit on his estimate of $1800. I know that oil-fired heaters are more expensive to install, but it's a bit more than I was expecting. Also, the real question: I'm having second thoughts about going the oil- fired route again. I live in Connecticut, and we do not have natural gas available on my street, so that leaves me with the oil versus electric question. I've heard that electric is more expensive to run, but with the recent runup in oil prices, I'm not sure if that holds true anymore. Is it worth it to pursue an electric water heater, or should I stick with oil? Also, IF electric would be cheaper, is it a huge deal to convert a former oil-fired heater area/ space to an electric water heater operation?
Just to make you feel a bit better, replacing a 6 year direct vent gas water heater is about $1600 in NC. Instead I went with a tankless gas unit for $3k because at least you get a 12 year warranty and maybe save a little gas.
Fuel oil is currently running in the $4.30 to $4.50 range (as I type this, the Nymex heating oil futures price stands at $3.70 and retail typically adds another $0.60 to $0.75). In Ontario, residential fuel oil now sells for as much as $1.36 a litre or $5.15 a gallon ($5.40 with tax).
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A conventional oil-fired water heater has an EF of about 0.55 whereas a good quality electric unit can reach upwards of 0.95. One gallon of fuel oil contains roughly 139,000 BTUs and at an EF of 0.55 you net
76,450 BTUs or 22.4 kWh(e). Dividing $4.50 a gallon by 22.4 tells us the operating costs of an oil-fired water heater are similar to those of an electric unit running at $0.20 per kWh.
Personally, I would go with a good quality electric unit for now and swap it out for a GE hybrid model when they become available in late
2009/early 2010.
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My sources tell me they will retail between $1,200.00 and $1,500.00, roughly $1,000.00 more than the conventional alternative. However, at $0.16 per kWh (Connecticut's electricity rates are second only to Hawaii), the payback would be less than three years (i.e., 2,500 kWh savings @ $0.16/kWh = $400.00/year).
Contact your electric company. They can give you the facts on the cost of operation. Note: Electric is less complex so there is less maintenance on them.
oil recovery is much better than electric, another option may be propane.
heres a comparison chart of water heating costs, but with oil up in price so much its likely out of date
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if you want to go electric does your main panel have the capacity space for breakers etc? if you use a lot of hot water you might look into 2 electric tanks in series, for better capacity
Good point regarding slower recovery and the need for sufficient panel capacity. If the homeowner has an older home with a 60-amp service, they're probably out of luck, but 100-amps should be sufficient in most cases, provided there are at least two available slots.
If the homeowner has a large family or are heavy users of hot water, a larger electric model (e.g. 80-gallons) might make sense and provided they have enough free capacity, higher wattage elements if that option is available to them; that should greatly reduce the likelihood of run-out and speed recovery. Another option would be to keep the water heater set at a higher temperature (e.g., 150F or 160F versus 120F or
130F) and use a mixing value at the tank to reduce the risk of scalding; a higher tank temperature would bump up capacity but standby losses would increase and tank life would likely take a bit of a hit, so there's definitely a trade-off.
For smaller families, homes equipped with water saving devices such as low-flow shower heads and front load washers, or for individuals who don't typically use a lot of hot water (e.g., wash clothes in cold or warm water), a standard size model should do fine. FWIW, my parents had a 40 Imperial gallon (50 U.S.) electric with three shower-loving kids and I don't recall there ever being a problem and, frankly, at a whopping $0.16 per kWh, I'd do whatever I could to reduce my DHW consumption.
With regards to propane, its price tends to track that of oil fairly closely and the Mont Belvieu spot price has increased by more than 50 per cent in the past year alone. The latest DOE figures for Connecticut were as of March 17th, and at that time the average retail price was reported to be $2.907 per gallon. A gallon of propane contains 91,000 BTUs and with an EF of 0.55, you net the equivalent of
14.7 kWh per gallon. That pegs the cost of propane at that time at $0.20 per kWh(e), which is pretty much bang-on with that of oil; however, it could be even higher today if propane prices have increased in the two months since.
Have you explored the propane option? That price you were quoted is just rediculous. As for electric, it's just a matter of setting it there and hooking up a wire. You'll need a spare 30A spot in your panel to run it.
Hi Paul, Thank you for your help. Historically, have energy prices kept the same ratios? I'm just wondering if the relatively recent run-up in oil costs put a monkey wrench in considerations - ie. should oil prices stabilize, how would that effect cost estimates.
It makes perfect sense if the OP has to replace his tank now and can't hold off for another two years. As noted, Connecticut's electricity rates are the second highest in North America and the payback on the second install could be as little as three years and possibly less if it qualifies for federal or state rebates/tax credits, low-interest financing, utility incentives and the like.
Additionally, if their local utility leases electric water heaters and the lease can be terminated at the end of two years without penalty, then the OP's out-of-pocket expenses could be even less.
That's a great question for which I have no good answer. Historically speaking, oil and natural gas have been more volatile and I suspect that's going to continue to be the case for the foreseeable future. Electricity does hold an advantage in that it can be produced by other sources such as wind, water and nuclear which are not subject to quite the same external pressures. To be safe, count on all of them escalating at a rate well in excess of inflation.
Someone else mentioned time-of-use rates and off-peak water heating which I think is an excellent way to go, provided you have sufficient storage capacity and/or can shift a good portion of your DHW needs to those off-peak hours (e.g., by scheduling laundry on weekends and using the time delay setting on your dishwasher, if so equipped, so that it runs overnight).
At this point, the operating costs of an oil or propane water heater are 25 per cent higher than a conventional electric unit and some two and a half times higher than a heat pump water heater such as the GE model I mentioned earlier. If you are relatively low to moderate user of DHW and can generate the bulk of your needs off-peak and still avoid run outs, then a heat pump water heater + TOU rates strikes me as the ideal solution.
The hybrid water heater in the link provided above looks interesting, but wouldn't that essentially provide air conditioning for my basement (which doesn't need it at any time of the year). It does look like an interesting device for people who live in warm climates and don't have the water heater in their basement. Unless I'm mising something here?
I'd suggest to have the oil fired boiler put in. You can always use plug in space heaters if the electricity is cheaper.
Oil, if memory serves, about 140,000 BTU per galon. A 1500 watt space heater puts out 5200 BTU for that 1500 watts. Hope that gives you some numbers to work with.
What's the rate for KWH where you are? Price of a galon of home heat oil?
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