Heat Pump vs Oil Furnace: Which is Best for Your Home?

At a Glance:

• Heat pumps offer efficiency up to 400%, compared to oil furnaces' average of 85%.
• Heat pumps provide both heating and cooling, while oil furnaces are limited to heating.
• Tetra can install your new heat pump as early as the next day while helping you score rebate savings and federal tax credits. 

If you’ve been asking yourself, “Should I change from oil heating to heat pump?”, you’re in the right place. While both types of heating systems have their own sets of pros and cons, a heat pump outperforms an oil furnace in almost every way. 

For more answers to the most common heat pump questions, here is another resource we published.

Heat pump vs. oil furnace: what’s the difference?

Heat pumps move heat rather than generate it, making them significantly more efficient than traditional heating and cooling systems. They extract heat from the outside air and transfer it indoors during winter, while reversing the process in summer to provide cooling. When comparing a heat pump vs oil furnace, this dual functionality makes heat pumps a versatile choice for year-round comfort. Heat pump efficiency can reach up to 400%, dramatically lowering energy costs compared to oil-based systems.

We’ve got even more useful information on the heat pump vs furnace debate here. 

Oil furnaces are a traditional heating solution, especially popular in areas without natural gas access. They burn heating oil to generate heat, which is then distributed through ductwork. While oil furnaces are effective at quickly warming up a home, they rely on fossil fuels, leading to higher emissions and less efficiency compared to modern alternatives like heat pumps. Oil furnace efficiency typically averages around 85%, making them less cost-effective in the long run. 

Heat pump vs oil furnace: let’s dive into detail

Advantages of heat pumps:

• Heat pump efficiency reaches about 400%, saving you money on energy bills.
• Heat pumps offer both heating and cooling in one system.
• Run on electricity, making them significantly more environmentally-friendly as they reduce reliance on fossil fuels.
• Eligible for federal tax credits up to $2,000 and other local rebates.
• Requires less upkeep than oil furnaces. Plus, Tetra offers 10 years of repairs and maintenance on any system we install. 
• Offer both heating and cooling in one system, making them perfect for homeowners asking, "Should I change from oil heat to heat pump?"

Disadvantages of heat pumps:

• Come with a higher initial cost as installation is more expensive upfront.
• Even though this is quite uncommon, you may need supplemental heating if you live somewhere with extremely low temperatures, 
• Heat pumps require specialized installation from experienced technicians, so it can be hard to find the right install partner. 

For more on the disadvantages of heat pumps, check out this post. 

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Advantages of oil furnaces:

• High Heat Output: Provides consistent heating, even during extremely cold temperatures.
• Lower Initial Cost: Typically cheaper to install than heat pumps.
• Reliability: Well-suited for regions with harsh winters.

Disadvantages of oil furnaces:

• Since oil furnaces rely on fossil fuels, they can lead to higher operating costs as prices can be unpredictable.
• Oil furnaces burn fossil fuels, releasing carbon emissions and increasing your carbon footprint. 
• Requires regular oil deliveries, inspections, and more maintenance visits. 
• Only provide heating, which means you’ll need an additional system for cooling.
• Oil furnace efficiency peaks at 85%, which is significantly lower than heat pumps.

Heat pump vs oil furnace: let’s get into the numbers

Heat pump installation:

• Costs range from $7,120 to $36,000, with an average cost of $16,025 after incentives.
• Offer long-term savings due to higher efficiency and lower operating costs, about $500 a year on average. 
• Federal tax credits and rebates significantly reduce upfront costs.
• Some utilities also offer further reduced electricity rates for heat pump owners. 

Oil furnace installation:

• Costs range from $6,400 to $9,200, with an average cost of $7,400.
• Higher operating costs over time due to fuel expenses and lower efficiency.

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The verdict is in, heat pumps are a more cost effective option versus oil heating.

When comparing heat pump vs oil furnace options, the winner is clear. While oil furnaces are reliable and effective in very cold climates, heat pump efficiency is unmatched. That’s in addition to the environmental benefits and versatility of a heat pump. Plus, with Tetra’s expertise and support, your switch to a heat pump is guaranteed to be quick, easy, affordable, and stress-free.

If you’ve been wondering, "Should I change from oil heat to heat pump?" the answer is yes. Schedule your free consultation with Tetra today and enjoy year-round comfort with peace of mind.