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Fuel Switching

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Heating your home or small business with oil or propane? Learn about the benefits of switching.

We're working to ensure Ontarians understand the potential benefits and savings associated with switching their space and water heating fuels to electric heat.

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Here are a few reasons to consider making the switch:

Oil Equipment

  • Higher costs*

  • Regular maintenance to keep equipment clean and working effectively

  • Requirement to keep your tank full and arrange oil deliveries

  • An oil-based heating system increases potential for environmental hazards and insurance costs may be higher**

Propane Equipment

  • Higher costs*

  • Missing a delivery of propane could mean your home heating is interrupted

  • Tank fillings require regular deliveries by a propane supplier

  • As propane is a non-renewable resource, there are other more environmentally friendly options

*Bill savings were determined by collecting information on propane and oil heating costs from publicly available data on NRCAN (as of May 2019) and the National Energy Board’s (as of October 25, 2017) websites. This information, along with Hydro One’s data on current electricity rates (as of May 2019), was compared on an equivalent BTU (British Thermal Unit) basis to determine which fuel provides the least cost heating alternative.

**According to the insurance webpage of a Canadian chartered bank.

Already have an electrically heated home or business?

Learn how to maximize your efficiency here .

What does it cost to heat a typical home in Ontario?

The graph shows historical residential heating for the period 2006-2019 for propane, oil, and electricity.

Annual heating costs were determined by collecting information on propane and oil heating prices from publicly available data on NRCAN’s website (as of Dec 31 2019). Oil heating costs for the period 2006 – 2015 were extrapolated based on data from the National Energy Board’s website (as of October 25, 2017). This information, along with Hydro One’s data on current electricity rates (as of May 2019), was compared on an equivalent BTU (British Thermal Unit) basis to determine annual heating cost for each fuel.




Benefits of switching

half a circle filled up.

Increased
savings

furnace

More efficient - no energy waste via exhaust


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Cleaner air in your home or business

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Less required maintenance

Wrench and list

May reduce insurance costs

Clock

Lower GHG
emissions

Sun

Lower risk -
no oil spills

Sun

Increased
convenience

Fuel switching calculator

Use our calculator to compare the annual cost of heating with oil or propane with an electric furnace. Note, the calculator outputs do not apply to seasonal homes.

What is your current heating fuel type or the type of fuel you'd like to compare?

Oil

Default values have been provided. These values are based on current typical averages. These values can be used or you can input different values from a bill or other source.

  • Litres of fuel you used in the most recent heating season (Oct - April):?You can find this information on your oil invoices or you can contact your fuel supplier

  • Total cost of your fuel in the most recent heating season ($):?You can find this information on your oil invoices or you can contact your fuel supplier

  • Other annual costs for your furnace other than standard maintenance:?You can find this information on any service bills/invoices from your heating equipment contractor

  • Furnace efficiency (%):?You can typically find this information displayed on your furnace label

Propane

Default values have been provided. These values are based on current typical averages. These values can be used or you can input different values from a bill or other source.

  • Litres of fuel you used in the most recent heating season (Oct - April):?You can find this information on your propane invoices or you can contact your fuel supplier

  • Total cost of your fuel in the most recent heating season ($):?You can find this information on your propane invoices or you can contact your fuel supplier

  • Other annual costs for your furnace other than standard maintenance:?You can find this information on any service bills/invoices from your heating equipment contractor

  • Furnace efficiency (%):?You can typically find this information displayed on your furnace label

The calculator provides general estimates on what energy costs may be expected from the heating systems being considered. The total lifetime cost of a heating system is the cost to buy and install the heating system plus the annual energy cost over the life of the heating system. All such estimates are based on information received from the user of the calculator and Hydro One is relying solely on the information and representations being made by the user, and the actual costs could vary based on other external factors such as weather, and the manner of using the equipment. Bill savings were determined by collecting information on propane and oil heating costs from publically available data on NRCAN (as of May 2019) and the National Energy Board’s (as of October 25, 2017) websites. This information, along with Hydro One’s data on current electricity rates (as of May 2019), was compared on an equivalent BTU (British Thermal Unit) basis to determine which fuel provides the least cost heating alternative. The annual heating costs presented by the calculator exclude the cost of converting to a different heating system, which may be significant. Hydro One recommends that you speak with a licensed heating contractor to get quotations on a new space or water heating system to better understand the total cost of switching heating systems. Hydro One does not make any guarantees, representations or warranties regarding the above estimates.

It's easy to switch!

We are working with several manufacturers and retailers to offer point of sale rebates on electrical equipment. Installation must be completed by 1Click or Reliance in order to qualify for the rebates.

Save up to $1000 on selected equipment!

Call today for an initial assessment.

1Click logo
Reliance Home Comfort logo

For general questions regarding our fuel switching program, please contact conservation@hydroone.com.

Hydro One is not affiliated with or involved in any installation work or equipment sale and does not guarantee any work done or equipment sold by these manufacturers, retailers, participating contractors or any others. Please consult your contract documents.

Never worked with a contractor before?

Here's what to ask:

1
Can you provide the names of three client references?

2
Will you provide an itemized list and proof of warranty?

3
Do you have general liability insurance?

4
What is your servicing and maintenance schedule?




Fuel Switching FAQs

Why are you promoting fuel switching?

We are always looking for ways to help our customers and have found that Ontarians who use oil or propane to heat their homes and don’t have access to natural gas have the potential to realize substantial benefits by switching their home and water heating to electric heat.

Why should I switch?

How much can I save by switching?

Your savings will depend on how much energy you consume for space and water heating every year. The more you use, the more you can expect to save by switching to electric heating. For an estimate of what you can expect to save on an annual basis, see the energy calculator above.

With Hydro One’s renewed focus on customer service, we’re promoting switching to electric heat in order to help our customers save money on their energy bills. In addition, our customers have told us that the environment is very important to them. Switching your space and water heating fuel from oil or propane to electric may reduce your annual GHG emissions. Use the above calculator to see how much you can reduce your emissions.

How did you determine the bill savings?

Bill savings were determined by collecting information on propane and oil heating costs from publicly available data on NRCAN (as of May 2019) and the National Energy Board’s (as of October 25, 2017) websites. This information, along with Hydro One’s data on current electricity rates (as of May 2019), was compared on an equivalent BTU (British Thermal Unit) basis to determine which fuel provides the least cost heating alternative.

As we recognize that each customer’s costs and consumption levels will be different, check out our online energy calculator to see how much you can save.

How easy is it to switch?

If your home already has ductwork installed, the installation of an electric furnace is as easy as the installation of an oil or propane furnace.

If your home has a panel that is 100 amps or lower, installing an electric furnace may also require a service panel upgrade. Increased panel capacity will also help you accommodate any other future added electrical loads and increases the value of your home.

Speak with your HVAC contractor for more information about installation requirements for your particular needs, or contact one of the contractors listed on our page.

Can my current electrical panel accommodate electric space/water heating?

If your home has a panel that is 100 amps or lower, installing an electric furnace may also require a service panel upgrade. Increased panel capacity will also help you accommodate any other future added electrical loads and increases the value of your home. Contact a certified contractor to learn more.

Why isn’t natural gas included in the comparison?

Almost half of Hydro One’s customers don’t have natural gas supply in their area. While natural gas can be an economical way to heat your home, our fuel switching calculator was designed to educate/assist our customers that don’t have that option.

Are there any rebates or incentive programs available to switch from oil or propane to electric space or water heating?

Currently there are no incentive programs available for switching from oil or propane heating to electric. We are working with several manufacturers and retailers to offer point of sale rebates on electrical equipment. For more information, see above.

Hydro One is not affiliated with or involved in any installation work or equipment sale and does not guarantee any work done or equipment sold by these manufacturers, retailers, participating contractors or any others. Please consult your contract documents.

What happens if electricity prices rise substantially or oil/propane prices fall after I switch?

Is Hydro One affiliated with the companies listed on the brochure/website?