Converting from an oil furnace to a gas furnace will cost you a bundle to install, but will save you real money each month.
Now that you've made the psychological leap from an oil furnace to a gas furnace, grab your calculator and crunch the numbers. When you've recovered from sticker shock, subtract the tax credit the feds will give you until the end of 2010-up to $1,500-and remember the $1,120 off your yearly energy bill that the oil-to-gas leap typically reaps, and the upfront costs don't look so bad.
Calculate cost of gas furnace equipment:
High-efficiency gas furnace installed, typically $4,250
50-gallon hot water heater, $600
Calculate cost of gas furnace hookup:
Dig a trench from main gas line to your house, $1,250, depending on distance
Piping from meter to gas furnace, $750
Calculate cost of everything else:
Remove above ground oil tank, $750 (or)
Remove underground oil tank, $3,000
Total cost of converting to a gas furnace:
If you figure the cost of installing a gas heating system, subtract the perks the feds will give you and annual energy savings, the conversion from oil to gas costs roughly $4,900.
references: houselogic.com, oliver marks, national association of Realtors