An average house in the Northeast uses 822 gallons of fuel oil for heat and hot water for one year. The chart below shows the cost of other fuels providing the same.
Source: Energy Information Agency (EIA), Dept. of Energy averages for the Northeast for 12 months ended January, 2013
Of the main fuels used to heat the homes, natural gas is the most popular and now the cheapest, as well. A decade ago, gas cost about 80 percent of an equivalent amount of oil; it now costs less than half of oil, as oil prices have raised and America’s boom in natural gas drilling has kept gas prices low. Nearly half of all homes use natural gas as their primary heating source. Some analysts forecast a huge supply of the fuel will be available for decades to come.
Getting a good handle on heating costs is not easy because the different types of fuels all use different metrics. How do you compare the cost of something in one metric such as fuel oil which is measured in gallons with something like corn pellets which are measured by the ton. Fortunately the government has made this easy for you. They have created a chart which shows heating costs using a common measure, British Thermal Units (BTU’s). By using the following chart you can determine the cost of heating in Millions of BTU’s. That then allows you to compare costs between all major fuel types.
| Fuel Type | Fuel Unit | Fuel Price Per Unit (dollars) | Fuel Heat Content Per Unit (Btu) | Fuel Price Per Million Btu (dollars) |
|---|---|---|---|---|
| Fuel Oil | Gallon | $3.36 | 138,690 | $24.22 |
| Electricity | KiloWatt-hour | $0.12 | 3,412 | $33.85 |
| Natural Gas | Therm 2 | $1.23 | 100,000 | $12.27 |
| Propane | Gallon | $1.94 | 91,333 | $21.27 |
| Pellets | Ton | $250.00 | 16,500,000 | $15.15 |
Switching from another fuel to natural gas usually requires replacing your furnace/boiler and maybe your water heater if it uses the same fuel. Costs will vary depending on your situation but are typically at least $3,500. Older LP gas units may be able to be converted, which would cost less.
National Grid usually charges $1,300 for digging natural gas from the street to your home if the distance from the gas main on your street to the front foundation of the home is less than 100 ft.
If your home is in a neighborhood without a natural gas main in the street, there may be additional cost for installing the gas main in your neighborhood. The cost is different in each neighborhood, depending on the length of the main and the predicted quantity of gas that will be used from it.