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Is it Worth Converting from Oil to Gas?

Discover if converting your oil furnace to gas is worth it. Learn costs, benefits, and efficiency tips from MileHi HVAC in Denver.

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Nov 13, 2025 - 15:34 Updated: Nov 13, 2025 - 15:35

If you’re a homeowner with an oil furnace, you may be asking yourself: “Is it worth converting from oil to gas?” Many homeowners are weighing the pros and cons of switching to natural gas as a heating source. At MileHi HVAC, we help Denver residents make informed decisions about their heating systems, whether it’s upgrading an old oil furnace or exploring a more efficient fuel source.

In this article, we’ll break down the costs, benefits, and long-term value of converting from oil to gas, helping you decide if the switch makes sense for your home.

Understanding Oil vs. Gas Heating

Before considering a conversion, it’s important to understand the differences between oil and gas heating systems.

Oil Heating

Oil furnaces burn heating oil to generate heat, which is then distributed throughout your home via ducts or radiators. Oil furnaces are known for their durability and ability to generate high heat output, making them ideal for extremely cold climates. However, oil heating has some drawbacks:

Oil prices can fluctuate significantly.
Oil furnaces require regular maintenance and cleaning.
Oil storage tanks can be bulky and prone to leaks.

Gas Heating

Gas furnaces burn natural gas to produce heat, offering a cleaner and more efficient alternative. Advantages of gas heating include:

Lower fuel costs compared to heating oil in most areas.
Cleaner burning, which reduces carbon emissions.
Easier maintenance and no bulky fuel storage required.

Understanding these differences is essential when considering the question: “Should I switch from oil to gas?”

Benefits of Converting from Oil to Gas

1. Lower Operating Costs

One of the biggest incentives for switching is cost savings. Natural gas is often more affordable than oil, which can lead to lower monthly heating bills. Over time, the savings may offset the initial cost of conversion.

2. Increased Energy Efficiency

Modern gas furnaces are highly efficient, with some models exceeding 95% Annual Fuel Utilization Efficiency (AFUE). This efficiency reduces wasted energy and lowers your carbon footprint.

3. Cleaner and Safer

Gas burns cleaner than oil, producing fewer emissions. Oil heating can leave soot and residue in your furnace and chimney, requiring more frequent cleaning and maintenance.

4. Convenience

With gas, there’s no need to store fuel on-site or schedule regular oil deliveries. Gas furnaces also heat up quickly, providing consistent warmth throughout your home.

5. Home Value and Marketability

Switching to a gas furnace can increase your home’s resale value, especially in markets where natural gas is preferred. Buyers often see gas heating as a modern, cost-effective solution.

Considerations Before Converting

While the benefits are significant, converting an oil furnace to gas isn’t as simple as flipping a switch. Here are key factors to consider:

Conversion Costs

The initial cost of conversion can range from $3,000 to $8,000 or more. This includes:

Installing a new gas furnace or modifying your existing unit.
Running gas lines to your home (if not already available).
Possible venting and ductwork modifications.

It’s important to compare this upfront cost with potential energy savings over time to determine if the investment makes sense.

Home Infrastructure

Older homes may need significant modifications for a gas conversion. Your existing ductwork, chimney, and electrical system must be compatible with a new gas furnace. A professional inspection is essential to avoid unexpected expenses.

Fuel Availability

Make sure natural gas is available in your area. If it isn’t, converting may not be practical, and propane could be an alternative, though it may be more expensive.

Maintenance and Lifespan

Gas furnaces generally require less maintenance than oil systems. However, like any HVAC system, they need annual inspections to ensure safety and efficiency.

Oil to Gas Conversion Process

Converting from oil to gas involves several steps:

Assessment – A certified HVAC technician inspects your home’s heating system, ductwork, and fuel supply.
Choosing a Furnace – Decide whether to install a new gas furnace or modify your existing oil furnace (if possible).
Installation – Install the gas line, furnace, and necessary venting. This may include replacing or upgrading ductwork.
System Testing – Ensure the new system is functioning safely and efficiently.
Maintenance Schedule – Schedule regular inspections to maintain optimal performance.

For professional assistance, our furnace replacement Denver services ensure the conversion is safe and hassle-free.

Is Oil to Gas Conversion Worth It?

So, is converting from oil to gas worth it? The answer depends on several factors:

Current oil furnace age and condition: If your oil furnace is over 15–20 years old, it may be nearing the end of its life. In this case, switching to gas can be a smart investment.
Energy costs in your area: Compare local oil and natural gas prices. If gas is significantly cheaper, the savings over time can justify the conversion.
Home heating requirements: Homes with high heating demands may benefit from the efficiency of modern gas furnaces.
Long-term goals: If you plan to stay in your home for many years, a gas conversion may increase comfort and reduce maintenance hassles.

Many homeowners find that the long-term benefits of lower operating costs, improved efficiency, and convenience make the conversion worthwhile. Plus, understanding Oil Furnace Replacement Cost helps you weigh the financial aspects before making a decision.

Tips for a Successful Conversion

Hire Certified Professionals – Only licensed HVAC technicians should handle gas conversions.
Plan Ahead – Factor in installation time, costs, and potential modifications to your home.
Compare Efficiency Ratings – Look for high AFUE ratings for maximum energy savings.
Check for Incentives – Local utilities or government programs may offer rebates for energy-efficient upgrades.

You can read about: Can I Fix a Furnace Leak Myself?

Final Thoughts

Converting from oil to gas can offer both financial savings and environmental benefits. If your oil furnace is aging or you want a more efficient and convenient heating solution, switching to gas could be a smart choice. MileHi HVAC helps Denver homeowners evaluate their heating options and provides expert guidance on oil-to-gas conversions.

Take the first step toward more efficient, cost-effective heating contact us today for a professional consultation and personalized recommendation tailored to your home.