furnace replacement cost

There are a lot of things to think about while deciding between an oil furnace and an electric furnace for your house. In this article, we’ll compare and contrast the two heating systems, looking at their pros and cons in terms of efficiency, cost, installation, maintenance, safety, and environmental impact.

Key Differences between Electric Furnace & Oil Furnace


To find out which heating system could be better for your needs, you need to compare the efficiency of electric and oil furnaces. There are a number of important factors to think about.

Electric Furnace Efficiency

The efficiency of electric furnaces is well-known to be high, usually falling somewhere between 85% and 95%. Due to this, a significant amount of the power that an electric heat system uses is turned into heat. In places with mild to moderate winters, where the need for heating is not very large, the benefit of such high efficiency becomes most noticeable.

Electric furnaces are very efficient because they do not produce flue losses, which are the heat that escapes during venting in systems that rely on combustion. Since they don’t use combustion to produce heat, electric furnaces also sidestep the inefficiencies that come with that method. This is why they work so well for heating and keeping things at a consistent temperature, unlike systems that rely on fuel, which might experience variations.

In addition, electric heating systems are now more efficient thanks to developments in heating technology, smart thermostat integration, and HVAC management systems. An electric heating system can optimize energy use and save waste by adjusting the heating output based on user habits and real-time temperature data.

Oil Furnace Efficiency

The efficiency ratings of modern oil furnaces typically range from 80% to 90%. In colder climates, when higher heat output is vital, oil furnaces excel in producing more oil heat per BTU of energy consumed, although slightly lower than electric furnaces.

Modern oil furnaces are much more efficient than their predecessors thanks to innovations like variable-speed blowers and multi-stage burners, which adjust the airflow and burning process to meet specific demands. This modulation is designed to increase energy utilization while minimizing heat loss.

The necessity of a flue or chimney, via which some heat can escape, means that heating oil furnaces can lose some efficiency. Since soot and other combustion byproducts can accumulate in the system and diminish operational efficiency, oil furnaces require regular maintenance to keep running well, similar to natural gas furnaces.

Electric Furnace Installation Costs

The installation of an electric furnace is typically less expensive and easier than that of an oil furnace because of its simplicity. An electric furnace might cost anything from $1,000 to $1,500 to have installed. Not having to worry about fuel storage or exhaust flue systems—both of which are essential for oil furnaces—is the reason for the reduced complexity.

Additionally, electric furnaces are more compact and take up less room, so you won’t have to make as many changes to your home’s heating system. Connecting the electrical components and checking the integrity of the home’s existing ducting are both part of the installation process.

Oil Furnace Installation Costs

Installing an oil furnace is a more difficult and costly process, usually costing between $4,500 and $5,000. A fuel storage tank, the furnace, and all of the associated piping and ducting add up to these expenses.

An oil furnace necessitates additional forethought and organization during installation. Because the fuel is combustible, it needs to be linked to a steady supply of oil and equipped with safety features. The installation of an oil furnace might be more complicated and expensive because of the need for a venting system to release the gases that are produced during burning.

Installation Costs

The furnace you select, the difficulty of the installation, and the cost of labor in your area are the primary factors that determine how much it will cost.

Operating Costs

Many homes place a high value on furnace operating costs, which are affected by factors such as fuel source prices and heating system efficiency.

Electric Furnace Operating Costs

Even while electric furnaces are quite efficient, their running expenses can be greatly affected by the cost of energy, similar to heat pumps. It can quite expensive to run an electric furnace in areas with high power rates, particularly during the winter months when heating demands are at their highest.

Some places provide cheaper rates during off-peak hours, and electricity prices can vary greatly by region and time of use. To take advantage of these reduced rates, electric furnace and heat pump owners can either heat their homes during off-peak hours or connect their systems to smart home technologies that optimize energy use according to power pricing.

Oil Furnace Operating Costs

An oil furnace, unlike a natural gas furnace, has running expenses that are very sensitive to oil price fluctuations, which may occur due to changes in international oil markets, changes in geopolitical stability, and problems with local supplies. Operating an oil furnace instead of an electric heater could save money in regions where oil is cheap and easily accessible.

However, heating costs can skyrocket in response to fluctuations in the price of oil, which is known to be extremely unpredictable. In addition to the state of the home’s insulation and the furnace’s efficiency, total fuel consumption is a major factor in operating costs.

Maintenance and Repair Costs

Electric Furnace

In most cases, oil furnaces tend to need more maintenance than electric furnaces. You won’t have to worry about fuel deliveries, oil filter changes, or chimney cleaning. Since there are fewer mechanical parts in their design, they are easier to fix and cost less overall. But compared to oil furnaces, their lifespan is usually shorter. Usually, the repair expenses are lower, falling between $100 and $300. Due to the reduced number of moving parts, electric furnaces are less likely to break down and can provide warm air to your homes for longer times.

Oil Furnace

More extensive maintenance might lead to higher costs, ranging anywhere from $400 to $2,500. To keep them running efficiently and clear of soot, which can cause fires, oil furnaces need to be cleaned on a regular basis. Cleaning soot and debris, which can build up and decrease efficiency, is part of the more frequent maintenance required of these systems. More regular and maybe more expensive maintenance is required. On the other hand, with regular maintenance, oil furnaces can outlast electric ones by a number of years.

Safety and Health Concerns

Electric Furnace

The absence of combustion in electric furnaces eliminates the dangers of oil spills and carbon monoxide poisoning. Nevertheless, some serious electrical problems can have fire risks.

Oil Furnace

The potential for oil to leak or spill from an oil furnace is a real concern. They add to the amount of carbon dioxide and other emissions that contribute to global warming.

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For starters, we will show up on time with a fully stocked service van, eager to resolve your heating, cooling, plumbing or electrical problem.

Braeden RigbyBraeden Rigby
19:47 25 May 24
Comfort Union should be your first choice for all your HVAC needs. Amazing family run business with a people first approach that is difficult to find. Highly recommended for anyone that values quality work !
premnath parthibanpremnath parthiban
14:52 23 May 24
I spent almost one year to find the best HVaC replacement company and finally landed with Comfort union .I initially thought it was a small job but then realized the magnitude of work and effort it goes into it ..Asif initially came to my house , explained to me everything in detail including what is code of guidelines expected by city of Calgary , that showed his knowledge on the whole process ..Then came his brother Moore for installation - you will never find such a wonderful person who knows in and out of the HVAC and moreover the most patient person I have ever seen .. he did the whole installation with absolute craftsmanship and love for the work he did .. the best part was his perfectness and every work he did was so perfect and tidy !Finally, came Khan ji - to do the final inspection to add perfectness over the perfectness carried by Moore .. He did inspection and made sure everything was 200% correct ..Overall , I would recommend comfort union over any other service provider …Replaced my furnace , water tank and my humidifier …
JJ YanJJ Yan
02:22 22 May 24
Muhamad and Darryl did an excellent job on installation of our new Bradford White 75 gallon water heater. Extremely professional and hard working. They not only just did the work, but also explained the procedure thoroughly and maintenance focus points. Kept the work place tidy and in order. Highly recommended to everyone. JJ
mr2008 2.0mr2008 2.0
04:08 12 May 24
excellent carrier furnace and air conditioner installation, highly recommend to others
20:52 06 May 24
It was great to see a father and son team work so professionally in the delivery and installation of our new Bradford White water heater. Thanks team for a wonderful job.
Arman GillArman Gill
03:21 30 Apr 24
Friendly staff and did amazing work with carrier hvac
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02:59 30 Apr 24
Amazing work. Good work on AC installation. Competive rates
Fast response due to the urgent occasions. The team is very experienced. Highly recommended!
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23:04 06 Apr 24
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18:28 02 Apr 24
Great and reliable service.
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10:11 01 Apr 24
Best reasonable and quick in their response.
E TanE Tan
01:45 31 Mar 24
I recently hired Comfort Union to install a new hot water tank in my home, and I couldn't be more pleased with the results. They went above and beyond to ensure that the installation process was smooth and hassle-free from start to finish.Daryl's expertise and professionalism were evident from the moment he arrived at my home. He took the time to assess the layout of the space and discuss the best options for the installation, providing valuable insights and recommendations along the way. His attention to detail and commitment to quality craftsmanship were truly commendable.Throughout the installation process, Daryl and Mo worked efficiently and diligently, ensuring that everything was installed correctly and functioning optimally. They were respectful of my home, taking care to clean up any messes and leaving the work area spotless once the job was complete.I would like to extend my sincerest thanks to the entire team at Comfort Union for their outstanding service. Thanks to their expertise and dedication, I now have a reliable water heater that meets my needs perfectly. I would highly recommend Comfort Union to anyone in need of plumbing services – their professionalism and quality workmanship truly set them apart.
Ayaan DawoodAyaan Dawood
06:38 10 Mar 24
Imran Ahmed KhanImran Ahmed Khan
06:04 10 Mar 24
Maggie VaccaroMaggie Vaccaro
21:26 05 Mar 24
Quick response for appt. Came over and got all work done.Will call them again and will recommend them to others. Thanks!
Ashirul PatelAshirul Patel
22:57 26 Feb 24
We had great experience. They work out an efficient way to solve our furnace issues while maintaining the minimum cost.
Rakesh SachdevaRakesh Sachdeva
04:44 10 Feb 24
Muhammad is very professional and very cooperative. He has completed the work as explained. Everything was completed on same day we had issue. Very responsive.
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22:28 08 Feb 24
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02:33 07 Feb 24
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Matt MelliesMatt Mellies
21:21 22 Jan 24
I had an issue with my furnace, went to reset my main breaker to power cycle trying to troubleshoot it... Breaker crapped out so I was sitting on an electrical, and furnace problem.Gave these guys a call and they were able to come out within 2 hours. Required a full main breaker replacement, and new gas valve on my furnace. They diagnosed it in only a couple hours, and fixed everything the same day.Had a great experience, the technicians that showed up were professional, and very knowledgeable. I'll definitely be using these guys when I eventually have replace my aging furnace.
Sharif ZayedSharif Zayed
00:15 22 Jan 24
Khan was so kind and considerate to help me during the -45 C calgary weather. We decided to replace our old furnace with newer and advance features choosing Carrier Furnace. We received the quote from Comfort Union which was competitively priced and the job was completed next day. Thanks.
Syed Zaigham RizviSyed Zaigham Rizvi
05:29 18 Jan 24
Had a bit of a crisis with rental property heating system in Calgary, our Goodman furnace gave out and had countless furnace repairs over the years. They got a new Carrier furnace installed quickly and very competitively priced compared to other carrier dealers. Wasn't expecting such quick service in the cold months. Definite recommend!
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00:23 06 Jan 24
Absolutely stellar service from this HVAC company! The team was prompt, professional, and incredibly knowledgeable. They swiftly diagnosed and fixed our heating issue with precision. Their attention to detail and commitment to customer satisfaction truly set them apart. A 5-star experience – our go-to HVAC experts!
Agit KokuAgit Koku
21:40 13 Apr 23
I recently had Comfort Union come to my home to fix an issue with my hot water tank's pilot issue. Not only did the technician promptly fix the issue, but they also took the time to clean out my drain as a courtesy. I was impressed by their attention to detail and their commitment to providing excellent customer service.I would highly recommend Comfort Union for anyone in need of plumbing services.

Environmental Impact

Electric Furnace

One way electric furnaces can help the environment is when they use power that comes from renewable sources. In this case, they do not contribute to global warming.

Oil Furnace

Typically causes more harm to the environment than other types of emissions because oil combustion releases carbon dioxide and other pollutants.


Electric Furnace

Depending on care and use, the average lifespan is twelve to fifteen years.

Oil Furnace

Expected to last for a longer period of time; given care, it could last for 20 years or longer.

Making the Right Choice: Electric vs. Oil Furnace

Climate Considerations

Among the most important considerations when deciding between an electric and oil furnace is the local environment.

An oil furnace could be a better choice if you reside in a place with severe and lengthy winters. When it’s chilly outside, an oil furnace will warm your home more rapidly and efficiently because of its greater heat output per British thermal unit (BTU). They are dependable in regions where winter storms often knock out power because they keep running even when the power goes off.

People living in a more temperate environment might benefit more from an electric furnace. Since temperatures rarely drop below a certain point, electric furnaces are more than enough to keep people comfortable. They are perfect for these types of conditions because of how efficient they are with energy and how little upkeep they need.

Personal Preferences and Future Considerations

  • Switching to an electric furnace could be the better choice if you care deeply about reducing your impact on the environment and the amount of fossil fuels you use.
  • Think about how much fuel will cost and when it will be available where you are. Electric heating could become even more attractive if your area experiences a transition to renewable energy sources, which could lead to cheaper electricity.
  • Keep in mind that potential buyers may choose an electric furnace over an oil-based one due to its cleaner operation and less complicated design if you’re thinking about selling your house in the near future.


Efficiency, affordability, safety, and environmental effects are just a few of the many considerations when deciding between an oil furnace and an electric one. Keep in mind that there have been major legislative shifts impacting heating systems due to the growing concern for sustainability. New residential structures cannot have oil-powered boilers, furnaces, or water heaters installed as of 31 December 2021 according to restrictions enforced by municipalities such as Quebec.

Homeowners can rely on Comfort Union for personalized installation services and expert advice as they navigate these choices. Comfort Union is the company to go to whether you need to modify your current system to meet new environmental laws or if you’re in the market for a high-efficiency electric furnace. If you want to make a green and comfortable decision for your house, our expert advice and installation services are here to help.

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