Friday, December 28, 2007

Gas and Math - Results are In

Way back before the furnace conversion, I did some back of the envelope (or is it 'back of the blog'?) calculations on whether the cost of converting the Vintage '63 Oil Furnace to Natural Gas would pay for itself in any forseeable time fame. I calculated back then that it would take about 7 years to recoup the cost of the upgrade in heat bill savings. I now have gas bills from Sept - Dec 20th, which is only a couple of days difference from the time we competely depleted our oil tank last year, so I can do the Actual Calculation.

Grand Total Gas Bills Sept - Dec: $333.

Compare THAT with the $828 we spent to fill the oil tank used Sept-Dec last year... it's 40% the cost, AND the house is actually warm!

But wait.....according to the Official Energy Statistics from the US Government, "The average residential heating oil price increased by 3.5 cents last week to reach 329.4 cents per gallon, an increase of 85.0 cents from this time last year. "
So realistically, I should add 85 cents/gallon to my oil cost to accurately compare, which makes that $828 to fill the tank actually $1079!!! 4 figures to fill up an oil tank! Yikes!

This means we are saving 70% on fuel bills, and at this rate, the conversion will pay for itself within 4 years.

Of course, the biggest benefit is Priceless: Cat Happiness.

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