What’s Involved in Converting from Oil Heat to Propane

Quick Answer

Converting from oil heat to propane involves replacing the oil furnace or boiler with propane equipment, installing a propane tank and gas lines, updating the venting, and either removing the old oil tank or closing it in place. The heating equipment can’t be converted to burn a different fuel, so it’s replaced. The installation itself often takes one to two days, with permits, the propane tank set, and inspections scheduled around it.

If your home runs on heating oil and you’re considering propane, it helps to know what the switch involves before you start comparing options. The work is straightforward for an experienced contractor, but there are several parts to it, and a few decisions along the way affect the cost and timeline.

What Are the Steps in an Oil to Propane Conversion?

An oil to propane conversion follows a clear sequence: assess the home, replace the heating equipment, install the propane tank and gas lines, update the venting, deal with the old oil tank, and pass inspection.

1. Assess the home and size the equipment. A contractor looks at your current system, ductwork or piping, and the home’s heating needs to choose the right propane furnace or boiler.
2. Remove the oil equipment. The old oil furnace or boiler, burner, and oil supply line come out.
3. Install the new propane equipment. The new furnace or boiler connects to your existing ductwork or heating pipes.
4. Set the propane tank and run the gas line. The tank is placed on the property, and a gas line is run to the house and to each propane appliance.
5. Update the venting. High-efficiency propane equipment usually vents differently than the oil system it replaces.
6. Remove or close the oil tank. The old tank is emptied and either removed or closed in place.
7. Pressure test, inspect, and start up. The gas piping is tested for leaks, the work is inspected, and the system is started and checked.

Can You Convert an Oil Furnace to Burn Propane?

No. An oil furnace can’t simply be adjusted to burn propane, so the heating equipment is replaced as part of the conversion.

Oil and propane burn differently. Oil is sprayed through a nozzle as a fine mist and ignited, while propane is delivered as a gas through a regulated valve and burner. The burners, controls, and safety components are designed for one fuel or the other. Replacing the equipment also gives you the chance to install a correctly sized, high-efficiency system rather than matching the size of an older unit that may not fit your home’s current needs.

If you’re shopping for a propane furnace for your house, look at the AFUE rating, which measures how much of the fuel’s energy becomes usable heat. High-efficiency propane furnaces are rated at 90 percent AFUE and above, while older oil furnaces typically operate at much lower efficiencies.

What If Your Home Has an Oil Boiler?

If your home is heated by an oil boiler, it’s usually replaced with a propane boiler, and the existing radiators or baseboard heating stay in place.

Boilers heat water that circulates through pipes to radiators or baseboard units, so there’s no ductwork to connect a furnace to. A propane boiler connects to the same piping. Some propane boilers can also heat your domestic hot water, which can let you retire a separate water heater. Adding a furnace instead would require installing ductwork throughout the house, which turns a conversion into a much larger project.

Will Converting to Propane Lower Your Heating Costs?

It can, but not automatically. The answer depends on the efficiency of your old and new equipment and on the prices of both fuels.

There are two sides to the math. A new high-efficiency propane furnace turns far more of its fuel into heat than an older oil furnace, which works in propane’s favor. On the other hand, a gallon of heating oil holds more energy than a gallon of propane. According to the U.S. Energy Information Administration, heating oil contains about 138,500 Btu per gallon, while propane contains about 91,452. That means you’ll buy more gallons of propane than you did of oil to produce the same heat.

The fair comparison is cost per unit of delivered heat, not cost per gallon. A contractor can help you run those numbers using your current fuel use, your old system’s condition, and the efficiency of the equipment you’re considering. Fuel cost is also only part of the decision. The age of your current system, the condition of your oil tank, and the option to run other appliances on propane all belong in the decision too.

What Happens to the Old Oil Tank?

The old oil tank is either removed or closed in place, depending on where it is and what the site allows.

Once you’ve moved away from oil, the tank no longer serves a purpose. If the tank is above ground, it can be pumped out, cleaned, and removed without much disruption. Underground tanks take more work. Removing one requires excavation and, if any leakage has occurred, possibly soil cleanup. You may be able to have an underground tank closed in place instead, which involves emptying and cleaning it and filling it with an inert material.

North Carolina’s rules for home heating oil tanks are specific. According to the NC Department of Environmental Quality, residential heating oil tanks are exempt from the state’s tank closure requirements, but if you discover signs of a leak, spill, or contamination, you must notify your DEQ regional office within 24 hours. The DEQ also notes that some local fire inspectors’ offices regulate underground tanks, so check with your local office before removal. Removing or properly closing an unused tank can also simplify things when you sell your home.

What Changes With the Venting?

High-efficiency propane equipment usually vents through PVC pipe out a side wall or the roof, rather than through the chimney your oil system used.

Condensing propane furnaces and boilers extract so much heat from their exhaust that it leaves the equipment cool enough to vent through plastic pipe. These units also produce condensate, a small amount of water that has to drain away. If the new equipment uses the chimney instead, the chimney may need a liner sized for propane. Either way, venting needs to be part of the installation plan.

What Does the Propane Tank Setup Involve?

Setting up propane involves choosing a tank size and location, deciding whether to lease or own the tank, and running a gas line to the house.

Tank size depends on how many propane appliances you’ll run and how much heat your home needs. Tanks can be installed above ground or buried, and placement has to meet safety distance requirements from the house and other features. Propane tank installation should be handled by a licensed propane company, which will set the tank, install the regulators, and test the system.

Once the tank is in place, you’ll need a supplier. Berico offers propane delivery service, including automatic delivery that schedules refills for you, and supplies propane tanks as well.

Can Other Appliances Run on Propane Too?

Yes. A water heater, range, clothes dryer, fireplace, or backup generator can all run on propane from the same tank.

If you’re already installing a tank and gas line, it’s a good time to consider which other appliances you’d like to switch. Planning them in from the start helps size the tank correctly and avoids running additional gas lines later.

How Long Does an Oil to Propane Conversion Take?

The installation itself usually takes one to two days, and some conversions can be completed in a single day.

The full project takes longer from start to finish because permits, the propane tank delivery and set, and inspections need to be scheduled. An underground oil tank adds time, especially if it’s being removed rather than closed in place. A contractor can give you a realistic schedule after seeing your home and system.

“The equipment swap is the easy part of an oil to propane conversion. What makes the job go smoothly is planning the rest: where the tank goes, how the new furnace will vent, what’s happening with the old oil tank, and which other appliances you want on propane. Settle those up front and the installation day is simple.”

Darrel Honeycutt, HVAC Expert Technician, Berico

Is a Heat Pump With Propane Backup an Option?

Yes. A dual fuel system pairs an electric heat pump with a propane furnace, and it’s worth considering in the Greensboro area’s relatively mild winters.

The heat pump handles heating on milder days, and the propane furnace takes over when temperatures drop low enough that the furnace becomes the better choice. If you’re currently weighing an electric to gas furnace conversion or an oil to propane switch, a dual fuel setup is one more option to compare.

Talk to Berico About Converting to Propane

Converting from oil heat to propane means replacing the heating equipment, installing a propane tank and gas line, updating the venting, and deciding what to do with the old oil tank. Whether it lowers your heating costs depends on your equipment and fuel prices, so it’s worth running the numbers before you commit. With good planning, the installation itself is usually quick.

Berico handles each part of the conversion: the new furnace or boiler, the propane tank, and ongoing fuel delivery. If you’re planning a furnace replacement in Greensboro and want to compare propane with your other options, call (336) 273-8663 to talk with our team.

People Also Ask

Can an oil furnace be converted to propane?

No. An oil furnace can’t be adjusted to burn propane because the two fuels use different burners, controls, and safety components. Oil is sprayed as a mist and ignited, while propane is delivered as a gas through a regulated burner. Converting from oil to propane means replacing the furnace with a propane model. The new furnace connects to your existing ductwork, so the rest of the air distribution system usually stays in place.

Is propane cheaper than heating oil?

It depends on current fuel prices and the efficiency of your equipment. Heating oil contains more energy per gallon than propane (about 138,500 Btu compared with about 91,452, according to the EIA), so you’ll use more gallons of propane for the same heat. But new high-efficiency propane equipment wastes far less fuel than an older oil system. The fair comparison is the cost of delivered heat, which a contractor can estimate using your actual fuel use.

Do I have to remove my old oil tank in North Carolina?

Not necessarily. According to the NC Department of Environmental Quality, residential heating oil tanks are exempt from the state’s tank closure requirements. However, you must report any signs of a leak, spill, or contamination to your DEQ regional office within 24 hours, and some local fire inspectors regulate underground tanks. Removing or properly closing an unused tank is generally the safer choice and can make selling your home easier.

What does it mean to close an oil tank in place?

Closing an oil tank in place means emptying it, cleaning it, and filling it with an inert material such as sand or foam, rather than digging it up. It’s an option for underground tanks when removal would be difficult or disruptive, such as a tank under a driveway or close to the house. Check with your local fire inspector’s office before choosing this route, since some jurisdictions have requirements for how tanks are closed.

How long does it take to convert from oil to propane?

The installation usually takes one to two days, and some straightforward conversions are finished in one day. The overall project takes longer because permits, the propane tank set, and inspections need to be scheduled. Removing an underground oil tank adds time, especially if soil testing or cleanup is needed. A contractor can give you a realistic schedule after evaluating your home.

Can I convert an oil boiler to propane?

You can replace an oil boiler with a propane boiler, which connects to your existing radiators or baseboard heating pipes. The oil boiler itself can’t simply be switched to burn propane. Some propane boilers can also heat your home’s hot water, which can let you retire a separate water heater. Switching from a boiler to a furnace is possible but requires installing ductwork, which makes the project much larger.

Does a propane furnace need a chimney?

Most high-efficiency propane furnaces don’t use a chimney. They vent through PVC pipe out a side wall or the roof because their exhaust is cool enough for plastic pipe. They also produce condensate that needs a drain. Lower-efficiency models may vent through a chimney, but the chimney often needs a liner sized for propane. Your installer will plan the venting as part of the conversion.

Should I lease or buy a propane tank?

Leasing a tank means the supplier owns it and typically handles maintenance, while you buy propane from that supplier. Owning a tank costs more up front but lets you choose your supplier. The right choice depends on how long you plan to stay in the home and how much flexibility you want. Berico leases propane tanks and can explain the terms, as well as how to switch if your current tank belongs to another provider.

What size propane tank do I need for a furnace?

Tank size depends on your home’s heating needs and which other appliances will run on propane. A home heating with propane typically needs a larger tank than one using propane only for a range or fireplace, and adding a water heater, dryer, or generator increases the size further. A propane supplier will recommend a tank size based on your expected annual use, which also affects how often you’ll need deliveries.