One of the most common questions real estate agents get from their clients about oil-heated homes is, “should I switch from oil to another heating source?”

Some people are under the impression that switching away from heating oil to another fuel like natural gas or propane gas will solve all of their energy concerns. But the reality is far different than the perception.

According to the Consumer Energy Council of America, it doesn’t make economic sense to switch fuels, and the better move is to upgrade to a new high-efficiency system of the same fuel. That’s because there are extra costs involved with conversion that homeowners won’t recoup quickly enough. And with today’s manageable heating oil prices, homeowners who switch today may never recoup the cost at all.

Heating oil price outlook

While heating oil prices are a little higher today than a few years ago when they hit a 13-year low, the Energy Information Administration is forecasting that we’ve reached a new normal in heating oil prices. Thanks to the increase in domestic supply coupled with the reduction in global demand for oil, oil prices are expected to stay stable next winter and for the foreseeable future.

Efficiency matters

There’s one other important consideration: energy efficiency. Your clients need to know that energy efficiency is driven by the technology of the system, not the type of fuel in the home. An old system, no matter the fuel type, is going to be extremely inefficient compared to today’s equipment.

So if your clients are looking to save the most money and energy, their best bet is to upgrade to a new high-efficiency heating oil system. They could save 25, 30, even 40% on their heating bills. Now that’s efficient!