The bottom line though, is that of all the home heating fuels available (Gas, both Natural and LP, Electricity, and Fuel Oil), Fuel Oil is by far the most volatile recently and without a doubt, the most difficult in relation to making a change when the cost becomes unbearable for the budget.

Is there a solution?  One possible answer, especially if the homeowner’s current equipment is getting age on it, is to change over to a more efficient Duel-Fuel or Hybrid home comfort system.  The Duel-Fuel or Hybrid system incorporates the use of a high efficiency Gas Furnace and a high efficiency Heat Pump in combination.  The Heat Pump starts as the primary source of heat, and operates the most efficient until outdoor temps drop into the upper 20s or low 30s.  At this point, the Thermostat senses the outdoor temperature and creates a call for heat from the Gas Furnace.  The two work in combination to maximize the utility costs.

As the article below explains the roller coaster effect that heating fuel oil has had on those that utilize this source of fuel, brings to mind a recent statement that I heard on the news.  In comparison, the recent drop in gasoline prices has given to a concern that consumers and the government will become complacent about the need to seek new and more efficient sources of energy for our future. In the same way, just because the price of fuel oil has dropped, and yes, this gives some relief to those getting ready to go into the heating season, the bigger problem is that they are just as vulnerable as before if not more so, to a future rise in prices.

Another point to consider also, is that the Fuel Oil Furnace is a very minimal market in today’s HVAC world.  This creates numerous negatives for the homeowner.  First, this equipment has become very expensive just by the nature of its supply and demand.  Most of the Fuel Oil furnaces being produced are now for the replacement market, where as the Gas Furnace and Heat Pump market are for a much larger scale of replacement and new construction.  Also, as new HVAC technicians are brought into the field, and the older groups retire, the experience with fuel oil equipment is greatly reduced, making the resources for repair services less available.

The article below gives a good overview of the recent Fuel Oil issues that homeowners have faced this year.

Hybrid Heating Systems are a Growing Trend

The use of “Hybrid” Heating Systems is becoming a very common practice.  With fuel prices acting like a ride at the county fair, (out of control and unpredictable) the installations of Hybrid, or Duel-Fuel Home Comfort Systems has increased dramatically.  These Duel Fuel application allow you, the homeowner to have more control over your heating expenses by only using the most economical fuel choice when needed.

Home Comfort for the Energy-Conscious

For colder climates, a hybrid heating system, including a gas furnace, heat pump and coil, offers the flexibility of dual fuel sources to establish and maintain a comfortable indoor environment with optimal energy efficiency.

What is Hybrid Heating?

Hybrid heating systems consist of an electric heat pump and a gas furnace that alternately work to maintain desired indoor temperature and humidity levels year-round. When moderate heating is required, the system selects the heat pump as the most energy-efficient source of heat. On colder days, the system automatically switches to the gas furnace for more economical heating efficiency. During warm weather, the heat pump reverses its cycle and functions as a central air conditioner.

Reduce Energy Use and Save Money

Hybrid heating system provides:

• Enhanced year-round comfort due to more uniform indoor temperatures and humidity levels
• A choice of two fuel sources, which means greater operational efficiency
• The flexibility to respond to fluctuating energy prices by using the most economical fuel source (this can translate into lower utility bills when thermostats are set correctly)

Compared to a traditional furnace alone, a hybrid heating system may cost more initially because it is essentially two complete systems in one, providing year-round heating and cooling.  And, because its greater operational efficiency translates into reduced energy use, the money saved each year on fuel costs can quickly make up for the extra initial investment.

Be Eco-Conscious

When purchasing a hybrid heating system, be sure to ask what type of refrigerant the heat pump uses. Heat pumps are now available with environmentally friendly R410A refrigerant. This chlorine-free refrigerant is better for the environment and transfers heat more efficiently.

Why should I choose one furnace over another?

When shopping for a new furnace, you may find yourself in a position where you are faced with the question “Is there a reason to pay $100 more for a furnace of the same size.”  Sure there is.

Just because two Gas Furnaces are both 90%+,  75,000 BTU and each has a 3 ton blower, the idea of comparing them on cost alone is a fools game.  Besides, if you are In the process of shopping for and purchasing your own replacement furnace, and you are concentrating on a few dollars price difference between furnaces, you are missing the big picture, or as I like to say, “Swallowing Elephants and Choking on Ants”.

Let me explain.  Before going into the physical differences that should be considered when purchasing, that may lead to paying a little more to get the best value, let’s first talk about the bigger picture of purchasing direct.  The fact that you have taken a very personal role in controlling your project cost by buying direct, means that you have been doing your homework and know that you can save up to and in some cases over 50% by taking this approach.  This savings will come from employing the contractor of your choice and you will not be paying the sometimes huge profits that are charged for theses installations.

Don’t get so caught up in saving money that you overlook the fact that you not only have the opportunity to save big money during your installation process, but you also have the opportunity to own a higher quality product with the savings that you are realizing.

So let’s get to some of the quality differences that should be considered. 

High Quality Brands:  The first point to cover and I think very important is to remember that there are about 37 different brands of HVAC equipment on the market and yet there are only about 7 manufactures.  That means that you may be able to get one of the higher quality brands by purchasing one of its identical products under a different brand name that is not as high profile and commands a lower price.

Frame & Structure:  One of the most important and rarely discussed features that should be key is the product frame and structure.  Is there a difference?  You bet.  When shopping, make sure and check the steel gauges and frame sets.  Here is the reason why.  Let’s take a furnace.  This is a frame and box setup that houses an extreme heat source and a high velocity blower system and a power venting system.  So what that means in relation to the structure, is that you not only have constant heating and cooling, but you also have constant fluctuations in torque with the cycling of the blower system.  The stronger the structure the longer the life.

Insulation:  With gas furnaces it is very important to have a fully insulated cabinet and blower compartment for quiet operation.  This simple extra process in furnace manufacturing is left out of some brands as a cost saving procedure.  Sound levels are very important when it comes to appliances in your home, so the little extra insulation that some of the higher quality brands offer can make the difference between a furnace that is loud and annoying and one that runs without notice. And, as a side note, the extra insulation is just more efficient.

Sealed Combustion and Isolated Burner Assemblies:  This one may go over the head of the average consumer at first, but is very important.  Several of the leading brands of gas furnaces claim to be “Sealed Combustion”.  But, what they are not telling you is that they are utilizing the front door of the furnace with some seals as their combustion chamber, and are not true “Sealed Combustion”.  A true “Sealed Combustion” Furnace with an isolated and sealed burner compartment may add a few dollars to the furnace but in the end, a true sealed burner will not only make sure that your exhausts are in complete control and your efficiencies are at their highest potential for design, but the darned thing will just plain be “Quieter”.  Have you ever been in a house and heard the “Whuumppp” sound when a furnace ignites?  With a true sealed combustion, this sound is greatly reduced.

Non proprietary controls:  What this means, is that some furnace manufacturers utilize their own electronics and fuel controls.  This may sound like a good thing, but the reality is, if and when the time comes that you require service on your system, the contractor will be forced to only purchase parts from the original manufacturer and the cost and availability are usually well above the norm, as they have a captured audience.  When shopping for a new furnace, make sure that the controls and gas valve are supplied by non-oem manufactures such as Honeywell and Norton.

Good luck with your project and remember that rarely is true value measured by the lowest price.  Don’t “Swallow The Elephant, To Later Choke On The Ant” .

The below article explains how not being proactive in taking care of your home heating problems can be very expensive.  Always great information from AskBoyd.com

Crisis Management Is Expensive

October 9, 2008

Ok, so it is now October and since the end of the last heating season, you have said “There is no way that we can make it through the next winter with our current furnace”.  Either because it has come to the end of it’s useful life, or because you are sick and tired of spending $200 a month to heat the house and you are sending $80 a month out the chimney and you want to increase your homes efficiency and tighten your budget.Whatever the reason, the one thing that is certain, by waiting you increase your odds of having to make that fateful call to the HVAC contractor in the middle of the night or on Sunday to “Fix” or “Replace” the furnace that you promised yourself you would take care of before the next winter season.

The opportunity has been under your nose the whole time.  You are now faced with the decision to repair your system for $1000 (and that could be to replace a $100 part.  They do that to get you to make the decision to replace) or you are being told that for $4,000 you can have a new furnace installed in the next 24 hours.  But, If you don’t let them do it, you will be warned that “everyone is busy” and it may be weeks before anyone can get to you.  Grrrrrr, that makes me mad.

Your alternative is to do a little research, find a company that offers name brand quality equipment, is personal enough to help you with your choices and buy the furnace yourself.  Then  find a good sensible local HVAC pro who will be happy to install your new furnace on a “Time & Material” basis.

By doing this, you can save as much as $2,000 and have exactly what you will get if your pushed into the corner to make the decision under duress.  The Contractors will tell you that if you buy your own equipment, you are on your own.  That is pure BUNK!

Here is an example:  When you bought your home and moved in, the Heating and Air equipment was there before you.  When you have needed assistance and called the local HVAC pro, he has come out and repaired.  He probably didn’t sell that system, so where is the “On Your Own” in that?

Look, in today’s stressed out, beat up financial markets, without a doubt, the very best investment that you have access to, is nowhere near Wall Street.  It is on “Your Street” and is probably in your basement or closet and it is your Furnace.

Don’t get backed into the corner.  It is your money and you should be the one to decide how it is best spent, not someone who’s primary goal is to increase their net worth and not yours.

According to newly released industry stats, the AHRI (Air Conditioning, Heating, and Refrigeration Institute) is reporting large increases of central air conditioners and air-source heat pumps for July 2008.  The sales of these units are up 6.2% from the same period a year ago.

In the height of the cooling season, heat-pump shipments rallied posting a 17.3 percent increase totaling 198,686 units for the month of July.

Despite the fluctuations in the residential and commercial markets, homeowners are still looking to save energy and money, according to a report written by Kermit Baker, Ph.D., chief economist for the American Institute of Architects (AIA).

“Households are looking for new technologies, while interest in alternative energy generation techniques and energy management systems is growing,” this new interest and the political and economical green emphasis has heightened July heat-pump shipments.

In contrast, gas-fired, warm-air furnaces dropped 6 percent and oil-fired furnaces dropped 52 percent as compared to July 2007. Year-to-date gas furnaces, totaling 1.2 million, have experienced a 16 percent drop and oil furnaces, totaling 26,296, have experienced a 30 percent drop.

The drop in gas fired furnaces is a direct effect to the increase in Heat Pump installations, but the drastic drop in fuel oil furnaces is more a correlation to near doubling in cost of heating fuel oils, an industry that may be on its last leg.

Homeowners are getting serious about their money and making decisions that directly affects their financial health.  Many are considering and putting into motion, plans to increase the efficiency of their home, and the above statistics are proof.

Here is a sample of an actual “Live Help” conversations.

Home Air Direct : Hello this is Jay. How May I help You?

Karen : Question
does this come with instructions Blue Tube UV Light, 15″ w/ Odor Sanitizing Technology

Home Air Direct: Yes. AS a matter of fact, I installed one three weeks ago in my home and i was stunned at how easy it was. It took me longer to find my drill then it did to do the project. If you give me your email address I will send you the instructions right now.

Karen : karenXXXXXX@XXXXX.com

Home Air Direct: Thanks. Give me a few minutes to dig them up and I will email them to you, but rest assured that this is a very easy do it yourself project. Also, I have had a fit with allergies this summer and it really has made a difference

Home Air Direct: Any other questions?

Karen : I was quoted $1400 today  by a local HVAC shop to install the same unit you sell for $197.  Is that possible?

Home Air Direct: It is not uncommon for some contractors to charge 3-4 times their cost on some installations.

Karen : thank you for your help.

Home Air Direct: Thank you Good bye

Karen : bye

This customer made the decision to replace his current unit with natural gas, and here is why. In 2000, the average price for a gallon for fuel oil was $1.60, and compared to natural Gas, was the more economical of the two. By 2007, the cost was up to $2.85 per gallon. At this level, natural gas, even with its own increases over time was now the most cost effective fuel, from a cost of fuel only perspective. It was still a coin toss as to whether or not the replacement of equipment could be justified just for the fuel savings. Although, there are many other considerations that we are not going into here that would help make the decision to switch, including but not limited to Maintance, Fuel Oil Furnaces need to be maintained, and often the repairs are quite costly, and the cleanliness and safety of the fuel is another consideration.

Fast forward to yesterday’s conversation. I was told that current “summer lock” pricing for Heating Oil was around $4.85 HOLY COW! Again, natural gas has had its own increases, but now the deck is stacked heavy in favor of natural gas. The cost savings related to using natural gas over heating oil is huge, but now the cost of replacing equipment is much less of a factor. As a matter of fact, the cost savings can pay for the equipment cost in a very short period of time.

I did a little research and here are a few things I discovered:

Of the 107 million homes in the U.S., 8.1 million still utilize heating oil
Of the 8.1 million, 82% are located in the Northeast United States
The Governor of Vermont recently declared the rise in heating oil an emergency as it relates to the financial health of its residents.
The AEI has reported that gas prices will remain at or above $4.00 for most of 2008-09. Heating oil is directly effected by the crude oil market. This can only be bad news for homeowners who rely on Fuel Oil.

If you are one of the 8.1 million homeowners that is trapped by this increase in Heating Oil, you have a choice. Don’t allow the oil supplier to scare you into believing otherwise. If purchased direct, a high efficiency natural Gas Furnace System can be a fantastic investment in your financial health, saving you thousands of your hard earned dollars. You have options. Take Control.

While the nation is currently focused on the high price of gasoline, by this winter the focus may well change to electricity and heating fuels. The EIA notes that the sustained high prices for petroleum are pushing up the spot price of natural gas. The spot price is projected to average $11.86 per thousand cubic feet (Mcf) in 2008 and $11.62 per Mcf in 2009, a 65 percent increase over the 2007 average. The trend is already apparent in the electricity market, where prices are projected to increase 5.2 percent in 2008 and 9.8 percent in 2009.

What can you do? As far as your consumption of crude oil products is concerned, I think we already know the answer. We prioritize our driving, adjust or “soften” our driving habits, when necessary move toward more fuel efficient cars, and mostly live with the problem. Because even though every move we make individually to be conservative in this arena of our lives is a good thing, the fact remains that on a personal level, we can only effect our personal position in minute portions.

The good news. In relation to the price increases expected in natural gas, you actually do have an opportunity to react to the coming increases in a way that will have a huge impact on your personal financial position. With anticipated increases in natural gas prices of 65% (and let’s face it, when the power
brokers make these predictions, they usually come true. Funny how they know that?), a home comfort system change to an energy efficient heat pump could have a substantial positive impact on your personal wealth.

Since a heat pump is basically an air conditioner with the technology to extract heat from the outdoor air during cooler conditions, just upgrading to a higher efficiency heat pump over your existing outdoor air conditioner could reduce your cooling utility cost by up to 40%. That in and of itself is enough reason to upgrade, but then you throw in the heat pumps ability to utilize the natural heat that exists in the outdoor air for heating your home when outdoor temperatures drop, coupled with the fact that you have taken control of your heating expenses and said to the gas company, “you can not take advantage of me. I won’t allow it” is icing on the cake.

And unlike an automobile that for most of us only costs us money, an upgrade to your heating and cooling system can actually pay for itself and then pay you over time. Stop spending every waking minute and starting every conversation with “can you believe the price of gasoline?” One of the very best investments that you can make is certainly not in your driveway on rubber, but is in your basement, closet or attic.

The best investment you can make is not on Wall Street, but is on Your Street.

In the last article we discovered how the age of your home cooling system can be a determining factor in the decision to replace your current Air Conditioner. Now let’s see how the upgrade of efficiency plays into the equation of a new Cooling system replacement.

Efficiency is the leading reason that most families replace their existing Air Conditioning systems. Let’s face it, if something didn’t improve, be it money savings on utility bills or comfort, no one would change out their working units. Cost savings are a serious trigger for homeowners these days and a new Air Conditioning System can prove to be an investment that pays off in a big way.

Let’s take a look. As the age issue points out, an Air Conditioning System that is approaching 15 years of age, will probably only be rated at 8 or 10 SEER. SEER is the efficiency measurement and standard that all U.S. Air Conditioning Systems are given for their operating cost efficiency. SEER stands for Seasonal Energy Efficiency Ratio. Currently, the minimum SEER that is available in the U. S. is 13 SEER, and some systems are rated as high as 21 SEER.

So what does this mean to you the homeowner? Well, let’s say you currently have an 8 SEER Air Conditioner and you decide to upgrade to a 13 SEER (current minimum standard). Each numeric rise in SEER rating equates to approximately an 8% increase in efficiency. That being the case, a 40% efficiency gain is possible (13-8=5×8=40). This means that if your average monthly summer cooling bill is $200, you could save up to $80 per month on our utility bill or nearly $1000 per year.

A savings of $1000 per year is huge. Now how does this play into the decision to replace your current system? Simply do the math. Over the course of the first five years, the saving alone will more then pay for the cost of a new system. What are you waiting for?

One of the basic factors to consider when deciding to replace your old air conditioning system is that of age. The old adage, “If it ain’t broke don’t fix it” is not always the best, and in the case of older cooling systems that attitude can be costly. Let’s say your old cooling system, be it Air Conditioning or Heat
Pump, is a 13 year old 8 SEER (Seasonal Energy Efficiency Ratio, the standard by which cooling systems are rated) system. Just because it is still running does not necessarily make it a good thing.

How can that be? Well, first off, let’s explore the efficiency. Today’s minimum standard is 13 SEER. Each numeric rise in SEER rating is equal to about an 8% increase in efficiency. So, replacing your 8 SEER system with a minimum 13 SEER will reward you with nearly a 40% increase inefficiency. That means that you can potentially lower your cooling utility bill by 40%. A simple calculation will show you that every year that you keep your old system because it is running, is costing some pretty big money.

Then there is the issue of pure age. Are there units running today that are 20 years old? Sure. Is that normal? No! The fact is a 15 year life span for motor driven split cooling systems is about all that can be expected. As a matter of fact, the ARI (American Refrigeration Institute) reports to its HVAC professional members, that 13.72 years is the current average maximum life of residential cooling equipment built today (2006 report).

Just like people, an Air Conditioning System ages. And just like people, moving parts wear out,
weather and time effect the structure, and the older they get the more expensive they are to maintain and repair. But, unlike people, they can be replaced and doing so before the time comes that maintenance and repair costs start eating into your pocket, can be a good financial decision.