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Faced with a $4,000 oil tank bill, Northeast homeowner weighs oil, propane, and a heat pump

"I do not have AC. That would be one upside of a heat pump for sure."

A white gas tank installed in front of a modern house.

Photo Credit: iStock

A Northeast homeowner staring down a $4,000 oil tank replacement has sparked a familiar debate. On the r/hvacadvice subreddit, they weighed sticking with fuel oil, switching to propane, or using the moment to rethink the entire heating system.

Here's what to know

Facing a tank replacement, the owner of a 1,300-square-foot home built in 1901 went to Reddit to weigh the costs of sticking with oil versus changing course. 

The homeowner said the house is heated by a forced-air oil furnace, that natural gas is not available in the area, and that replacement estimates for the tank were coming in at "at least $4,000." They asked whether propane might make more financial sense.

One commenter wrote: "Another option if your AC is going to be due for replacement would be to do a dual fuel system. Heat pump runs on mild days when it would be more efficient, propane for the colder days." 

For homeowners considering that type of upgrade, Palmetto's Comfort Plan network can help you find efficient heating and cooling solutions for your home and connect you with vetted installers.

More background

Much of the hesitation around a heat pump was anecdotal. The homeowner said people they know complain that heat pumps can struggle when temperatures fall below zero and may send power bills higher.

"The people you know with heat pumps either don't have cold weather rated units or are just really.undersized," a user countered.

"I do not have AC," the OP conceded. "That would be one upside of a heat pump for sure."

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Throughout the thread, dual-fuel systems kept coming up, with commenters describing a setup where a heat pump covers milder weather and a propane furnace takes over in severe cold.

"Heat pumps are A Lot better than they used to be ...it's worth checking out the newer stuff," a user said.

What can be done?

The first step is to get multiple quotes that compare all realistic options. The key is to make those quotes truly comparable by looking at efficiency ratings, installation costs, and expected operating costs.

Palmetto can help with that process, too. Through Palmetto's Comfort Plan network, homeowners can explore efficient HVAC and heat pump options, and if you're not ready to spend up front, the Comfort Plan includes $0-down options that can lower your heating and cooling costs by up to 50%. Palmetto Comfort Plans include 12 years of free maintenance.

Homeowners who choose more electric appliances, including efficient HVACs, may be able to reduce costs even further by pairing them with solar panels. EnergySage makes it easy to find the best solar system and installer for your home and budget, saving you up to $10,000 on installations.

Where can I learn more?

If you're facing the same oil-versus-propane-versus-heat-pump decision, these homeowners ran into many of the same trade-offs.

• A Minnesota homeowner liked the sub-zero heat pump data but still wanted propane backup.

• New Massachusetts homeowners learned their 1950s oil system could cost more than a heat pump.

• In central New Jersey, $15K to $20K HVAC quotes pushed homeowners to question heat pumps.

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