Converting a Boiler From Oil to Gas: What You Need To Know About the Change

With Local Law 97 and other evolving regulations taking effect throughout New York City, it can be challenging for property owners to make changes and perform renovations to stay compliant. The new demands of city policy include changes to building infrastructure and operations to cut greenhouse gas emissions.

NYC properties are responsible for about 70% of all emissions. You can reduce your building’s emissions by converting the boiler from oil to gas. Learn the importance of converting a boiler from oil to gas and whether such a system is right for your property.

Converting a Boiler From Oil to Gas

The Importance of the Conversion

New York City is full of older and historically significant properties. Preserving architectural masterpieces is noble, but it often comes at an expense. Older buildings often use oil boiler systems, which are typically inefficient and environmentally problematic — oil boilers are among the top smog contributors in the city.

The pollution from older boilers is one of the primary reasons property owners should eliminate them. LL97 and other regulatory changes set emissions goals and deadlines, and any non-exempt property faces fines and penalties for noncompliance.

Natural gas may also contribute to a property’s carbon footprint, but it is not as bad as oil. Also, gas boilers do not reduce the property value as much as oil options. Many home buyers and tenants want to avoid the insurance hassles or maintenance headaches of oil boilers.

Greener methods for heating properties are gaining stamina in the market, and NYC recently banned natural gas hookups in new developments. That said, older properties can still benefit from converting a boiler from oil to gas.

The 5 Advantages of Conversion

1. Cost

Even without changing the boiler’s efficiency, gas is less expensive than oil. Natural gas is abundant and more accessible than oil in the U.S., reducing its cost. Most areas across the U.S., including New York, have easier access to natural gas than oil. With fewer logistical challenges, suppliers can keep costs down.

However, most property owners also upgrade their building’s boiler to an Energy Star-rated system to improve efficiency, creating even more savings than simply swapping fuels.

While changing fuel offers monetary savings, the initial installation of a gas system is more expensive than an oil system. You can offset the financial hurdle with federal and state incentives. Also, the operational savings within the first few years can pay for the initial expense, depending on the use and boiler model.

2. Safety and Convenience

Boilers are potentially dangerous systems. The units balance pressure and flammable supplies, meaning explosions and fires are possible without proper care.

Oil-based systems require more attention from property owners, which is why many owners plan on converting a boiler from oil to gas. The fuel requires constant replenishment, and the tank requires routine cleaning.

A gas system is safer because it does not require owners to monitor it as often. Gas is a cleaner fuel source, and since the boiler connects to a gas line, it essentially has an unending fuel supply, meaning interaction with the system is less frequent.

3. Versatility

Heating oil has only one job: to fuel your boiler. Natural gas is more versatile. While it effectively fuels your property’s heating system, it can also power other appliances, such as dryers and stoves. The fuel can also help heat amenities for tenants, such as pools.

Converting a boiler from oil to gas can work to your advantage. Natural gas helps you save money on several building operations, and you can pass the savings on to future tenants. Also, energy efficiency can be a strong marketing tool to attract conscientious applicants.

4. Maintenance and Logistics

When your building uses oil to fuel its boiler, it contributes a larger carbon footprint than you may realize. Assessing emissions within your property is not enough; you must also consider the logistics of the products and fuels you use to keep operations steady.

Unlike natural gas with its central distribution system, oil-based systems require fuel delivery from off-site suppliers. The transportation of fuel contributes to carbon emissions.

Beyond GHG emissions, oil boilers are more work than they’re worth. To limit logistical needs, many buildings have oil storage tanks on the premises. The tanks require frequent maintenance. Also, because of particles released in the combustion process, oil systems can clog, so routine cleanings are essential.

Gas systems are less demanding. While regular cleanings are still necessary, they do not need to occur as often.

5. Reliability

Converting a boiler from oil to gas can also increase reliability, especially in emergencies. Sometimes emergencies in NYC and other major cities can interrupt deliveries of critical items like heating oil.

Gas systems do not require human personnel for fuel deliveries. The system is relatively self-sufficient, with the supply line built in. Natural gas is an abundant resource, and the U.S. has over 4% of the world’s supply.

The Right Choice for Your Property

Gas Conversions and New Regulations

With the creation of laws banning gas appliances and heating systems throughout the state and country, property owners may wonder if now is the best time for conversion or if there are better options. For now, laws mainly focus on new developments, meaning older properties may not be a concern. Still, if you are planning significant changes or renovations, check with local building codes to ensure compliance.

To get ahead of regulatory issues, consider upgrading to an electrical system. NYC is trying to move toward full electric power and zero emissions. While the existing grid can’t handle excessive demands, property owners can help by installing solar panels and other energy-efficient systems.