Furnaces never break at a convenient time. (Mostly because no one uses their furnace in the summer!) Worse, few homeowners plan for a furnace repair. The bill can represent a large expense, and some homeowners may wonder whether it’s better to repair or replace.
How old is your furnace?
Like most things, there’s more than one way to think about this! If your furnace is super-old, repair-v-replace may be a no-brainer. But what exactly qualifies as a “super-old furnace?” 1992 provides a good mile marker because the Department of Energy first started making furnace efficiency requirements then. Furnaces installed at that time had to be at least 78% efficient. That’s not to say that your 1992 furnace is still 78% efficient in the waning days of 2018. It’s not! Furnace efficiency deteriorates over time. Routine maintenance and repairs can help restore or preserve its rated efficiency, but your furnace just gets old.
The return on investment for furnace replacement
One way to answer the “repair or replace” question is by looking at the return on your investment. If your furnace was installed before 1992, it is wildly inefficient by today’s standards. You are spending money hand-over-fist to keep your old, inefficient furnace running. Replacing your furnace may have a high initial cost, but you can recover this through reduced operating costs. If this describes your situation, it’s worthwhile to sit down and calculate the point at which a new furnace will pay itself off. (It won’t take that long!) MassSave also offers low- and no-interest loans to cover the cost of furnace replacement. Believe it or not, you can still save money by borrowing to replace your pre-1992 furnace!
On the other hand, a repair cost is defined and it’s virtually certain to be less than replacement. However, repairing an older, less efficient furnace commits you to paying higher operating costs at least until the next repair. (When you have to make the repair/replace decision again.) Sometimes, repairing an old, inefficient furnace has a lower immediate cost, but a higher long-term cost. A higher operating cost could mean that you’re paying hundreds of dollars more per winter to keep your old furnace. That’s definitely not ideal!
The cost of fuel
If you’re using a more expensive fuel (e.g., heating oil), a breakdown could represent a chance to save big. Oil-to-gas conversion can reduce your home’s energy consumption, reduce your costs and let you switch to a cleaner fuel. The cost of heating oil this season has been relatively stable. (It’s actually dropped slightly since the beginning of heating season.) Price volatility is one reason, however, to consider switching to a lower cost fuel. Homeowners can spend 2 to 3 times as much per winter to heat with heating oil. Additionally, heating oil poses environmental quality dangers that other fuels don’t.
Ultimately, the repair-v-replace decision will be up to you. Making a lower-cost repair can help get you through the heating season. This may give you time to make a potentially big decision without being under pressure.
If you’d like more information about furnace upgrades, oil-to-gas conversions or calculating your savings on heating and cooling costs, give us a call at Boston Standard Plumbing & Heating at (617) 288-2911. We’ll be happy to schedule a consultation and show you how you can save on your heating and cooling costs.
Photo Credit: ewitch, via Flickr