Many of us are feeling our household budgets stretch, with prices rising for everything from milk to real estate. Many homeowners are finding that their energy bills are becoming one of their highest monthly expenses. If you heat your home with oil, you are likely aware that the price of oil fluctuates and has become increasingly expensive in recent years. Furthermore, burning fossil fuels in your home isn’t healthy for the planet – or your family. In collaboration with our Underwriting team, we have written this blog to help you explore the benefits of converting from oil to a heat pump or propane furnace, not only for your wallet but also for the environment and your family. We will also discuss government initiatives that provide support and incentives which can make the transition easier for you.
1. Long-term savings on utility bills and maintenance
Heating with propane or a heat pump can be inexpensive, especially compared to other fossil fuel sources. Clean-burning propane furnaces require substantially less maintenance annually than an oil furnace because there is no accumulation of soot or carbon inside of a propane furnace. You can expect to pay about half the maintenance costs of an oil furnace, as oil furnaces require more cleaning as well as changing the nozzle, filter, and air filter every year.
Electric-source heat pumps are the most energy-efficient HVAC option for most homeowners as they can use as little as a third of the energy of traditional HVAC systems and help to reduce greenhouse gas emissions.
2. Safer for the environment and your family
It’s important to be environmentally conscious and do everything we can to make a difference for future generations. Propane is one of the cleanest burning fossil fuel products, releasing negligible amounts of emissions. If you decide to opt for a heat pump, the good news is that they run on electricity which means they have less of an impact on our environment, creating fewer emissions. Additionally, since heat pumps are electric, this means that there’s no combustion process in your home, making them a safe alternative to oil furnaces.
3. A great way to save on insurance premiums
Insuring oil tanks, especially underground or older oil tanks, can be difficult due to the risks associated with spills and leaks. Regular and proper maintenance of oil tanks is required, and even with best efforts, an oil leak or spill can still happen and can result in significant expenses. Without proper insurance coverage, the cost of cleaning up an oil spill can cost anywhere from $250,000 to $500,000.
4. Propane and heat pumps are versatile
If you have an oil tank, you’re probably just using it for heating and hot water. But did you know that by switching to propane, you can power your heating, hot water, fireplace, stove, dryer, barbecue, and emergency generator, as well? This means fewer bills and one provider to deal with.
On the other hand, electric heat pumps provide both efficient heating and cooling to help keep your home comfortable year-round.
Government Initiatives and Grants to Offset the Cost of Switching from an Oil Furnace
The Government of Canada is strongly recommending shifting from oil tanks to heat pumps or propane, for good reason. To encourage homeowners to embrace greener and more cost-effective heating solutions, Enbridge Gas, with the support and funding from the Government of Ontario, have launched the Clean Home Heating Initiative. This program provides incentives of up to $4,500 for homeowners in specific areas, including London, St. Catharines, Peterborough, Sault St. Marie, Barrie, Whitby, and Pickering, to install electric heat pumps.
Furthermore, the Government of Canada has implemented a Canada Greener Homes Grant which provides grants from $125 to $5,000 for eligible homeowners for upgrading to a heat pump. The grant also offers interest-free loans to Canadians, assisting with the costs of upgrading to heat pumps and supporting the transition to a greener Canada.
Additionally, the Government of Canada has also launched an Oil to Heat Pump Affordability Grant that helps Canadian homeowners who are currently heating their homes with oil to transition to electric cold climate air source heat pumps. Canadians can receive up to $10,000 towards the purchase and installation of an eligible cold climate air source heat pump system, as well as the safe removal of your oil tank.
Contact Ayr Famers Mutual Insurance Today
If you have questions or concerns about your home insurance policy as it pertains to oil tanks or are considering switching from an oil heating system, please contact one of our knowledgeable insurance agents online or by phone at 1-800-265-8792 and they can guide you along the process.
Disclaimer: The information provided on this blog is for educational purposes only and is not intended as professional insurance advice. The coverage, terms, and conditions of each insurance policy are unique and subject to individual circumstances. The information provided does not guarantee the availability or suitability of any insurance policy for your specific needs. You should not rely on the information in the blog as an alternative to professional advice from your insurance broker or insurance company. If you have any specific questions about any insurance matter, please consult a licensed insurance agent or insurance broker for personalized advice and guidance.