Switching to natural gas heating can save money

The power bill is a major consideration for a lot of people, especially in areas that get incredibly cold. One way to save some money, over the long term, is to switch to natural gas for heating.

The only gas that is getting cheap

Gas is getting cheaper. Not gasoline, but rather natural gas. According to CNN, natural gas prices are nearing all-time lows, recently reaching the price of $2.94 per million British Thermal Units or BTU.

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The price is measured by how much it would cost, given current supply and market demand and so forth, to generate one million BTUs of heat by burning said gas. One BTU, according to the Business Dictionary, is enough to raise the temperature of one pound of water from 39.2 degrees Fahrenheit to 40.2 degrees Fahrenheit. Four years ago, the price was more than $15 per million BTU.

Stay warm all winter for less

The cost of heating the typical home for the winter with natural gas is $671, given those prices. According to the Energy Information Administration, the projected cost for winter heating with natural gas was $700 in December.

However, for heating oil, the projected cost was $2,492. Propane was projected to cost $1,883 to heat a home through the winter, though use is mostly confined to the Midwest, and the electricity bill for heating during the winter was forecast to be $945. Even the government thinks natural gas is a good heat source.

Switching

Converting one’s home to natural gas may seem like a real no-brainer. According to CNN, about half the nation already uses it. That said, there are a few difficulties.

First of all, natural gas is, just like electricity and water, provided by a utility company. If the local utility company doesn’t have natural gas, the customer is out of luck. Also, installation involves more than just hooking up a few new heaters and a gas tank. According to CBS Boston, the conversion process depends on the residence and the current heating system that’s in place.

For those with a forced-air system, ie central air, it can cost upward of $5,000 or more. For an electric radiator system, it can be upward of $7,000, because of the piping that has to be installed. Switching from a heating oil system, according to CNN, can cost upward of $7,000.

Costs of switching also depend on the natural gas system installed, how efficient it is and how complicated installation is. That said, the switch may not be worth it unless the plan is to stay in the residence long-term.

Sources

CNN

CBS Boston

CNN

Energy Information Administration: http://www.eia.gov/tools/faqs/faq.cfm?id=649&t=8

Business Dictionary: http://www.businessdictionary.com/definition/British-thermal-unit-Btu.html