Written on: November 25, 2024

Does Heating Oil or Electric Home Heating Cost More?

BTU Content Can Be Used to Compare Actual Cost

home heating Port Chester, NY As you’re probably aware, there is a movement in Connecticut, New York and other states to electrify everything possible. And we’re not just talking about cars. Heating oil systems are on the chopping block too.

The new electric heat being touted as the replacement for everything else is the electric heat pump. This is basically an air conditioner that can work in reverse, blowing warm air into a home during the cold weather months.

This commitment to all-out electrification can lead to big problems, however. Heat pump conversions are expensive and not practical for all New York and Connecticut homes, especially those with no ductwork.

Heat pumps also do not work efficiently when the weather gets cold. What’s more, on January1, 2025, a new regulation goes into effect that changes the refrigerant in new heat pump equipment. As a result, manufacturers need to add new components to their equipment to be compatible with the newer refrigerants. Equipment manufacturers report that this will raise the cost of new heat pumps by 20-25% beginning next year.

Heat Pumps Can Leave You Cold

While it’s true that heat pump technology has improved greatly over the years, there are still times when it is so cold the heat pump will not be able to keep your home comfortable, requiring the need for a backup heating system.

But if state governments are successful in pushing heating oil, natural gas and propane gas heating systems out the door, the only alternative for backup heat would eventually be electric resistance heat strips that are integrated into the central heat pump system. But this will make electric bills go even higher! Electric resistance heat is cheap to install but very expensive to operate.

Compare Heating Oil to Electric Cost with BTU

According to data from the Energy Information Administration, in August 2024, the residential electric rate in Connecticut was nearly 30-cents per kilowatt hour (kWh). New York was a little cheaper, but still expensive, coming in at about 25-cents per kilowatt hour (kWh). So how do you compare that to the cost of heating oil from us, which has been in the range of $3.50 per gallon this year?

To achieve a true comparison of these costs, you need to consider heating efficiency.

First, heating oil generates much more Btu than an equivalent amount of electricity, so you need much less heating oil to produce the same amount of heat energy.

The U.S. Energy Information Administration explains that a British thermal unit (Btu) is a measure of the heat content of fuels or energy sources. It’s measured by the quantity of heat that’s required to raise the temperature of one pound of water by one degree Fahrenheit–at the temperature in which water has its greatest density (approximately 39 degrees Fahrenheit).

Thanks to BTU, you can compare different heating fuels on an equal basis. For example, to compare heating oil with electricity, you need to know that:

Right off the bat, you can see that our Bioheat Plus® fuel has a whole lot more BTU power than electricity does. To make these two energy sources “equal,” divide 133,000 Btus by 3,412 Btu. Your answer, rounded off, will be 39.

The number 39 means one gallon of B20 Bioheat fuel is the equal of 39 kWh of electricity. In other words, one gallon of heating oil has the same amount of usable energy as 39 kilowatt hours of electricity.

Finally, to get to the actual cost, multiply 39 kilowatts by the cost of electricity. Let’s use Connecticut for this example. Multiply 30-cents per kWh by 39 kilowatt hours and you get $11.70 So, one gallon of heating oil at $3.50 is the same as 39 kwh of electricity, which comes out to a cost of $11.70. It’s easy to see now the clear winner as far as the cost to heat your home: it’s Bioheat Plus fuel by a mile over electric heat!

B20 Bioheat Plus® Fuel in Port Chester, NY

While New York and Connecticut have both experienced delays in meeting their clean energy goals, we have not experienced any obstacles in moving forward with the oilheat industry’s goal of transitioning from 20% to 100% renewable Bioheat® fuel.

The industry has already surpassed its goal of reducing greenhouse gas emissions (GHG) by 15% by 2023. They’ve achieved a nearly 26% reduction in GHG due to a combination of energy efficiency improvements and increased use of renewable Bioheat fuel.

The B20 Bioheat Plus fuel we deliver is a blend of ultra-low sulfur heating oil blended with renewable biodiesel. The B20 part of B20 Bioheat Plus fuel stands for what percentage of the fuel is made with biodiesel. That means that our Bioheat Plus fuel is made with 20% biodiesel. This high level of biodiesel is why B20 Bioheat Plus fuel burns extremely clean, as well as efficiently. In fact, it typically only produces less than a tablespoon of soot in your heating system per year!

Heating Oil Services in CT and NY

Westmore Fuel provides heating oil and heating oil equipment service to Darien, Greenwich, Stamford, and nearby communities in Connecticut. We also deliver fuel and provide equipment service to New York communities, including Port Chester, Mount Kisco, New Rochelle, and White Plains.

Contact us to learn more about Westmore Fuel, a company built around its customers.