Ballpark Estimate: $3,000 to $7,000 (including installation)
With the rising costs of gas and oil, you may find your heating bills escalating out of control. (In fact, some homeowners in the northern part of the United States spend as much as half of their annual energy bills just on heating and cooling.) But if your boiler is 15 years old or more, you may not have to simply accept this fate. You can actually lower your monthly expenses simply by upgrading to a more energy efficient model. With a new energy efficient boiler, not only will your energy bills be less, but you will also minimize how much energy you waste.
Newer Is Better
Many Americans rely on boilers to heat their homes. The typical models are made with cast-iron, steel or copper heat exchanges and have different style burners and venting systems. Regardless of the type you have, a boiler will generally work by transforming natural gas, oil or electricity to heat water or produce steam. The hot water or steam then travels via the piping system in your home to reach your heating element (such as radiators and baseboard convectors).
While both the older and the newer models work on the same premise, how efficiently they perform their job can vary greatly. If your boiler is an older model, the energy rating on it is probably much lower than the current standards. In fact, many of the boilers from days long past have an energy efficiency rating of only 60 percent. What this means is that a full 40 percent of the heat you are paying for is wasted in the end. Compare this to the new energy efficient boilers, which are between 80 and 95 percent energy efficient, or use between 80 to 95 percent of the energy for what it is intended with only a small percentage lost. This is a significant difference, both in terms of dollars and also in environmental impact.
Size Matters
If you’ve decided to invest in a new energy efficient boiler, you should determine the size you need before you start to shop. Since the average life span of a boiler can be two to three decades, this investment must last for quite a while, so it is crucial that you find the right fit for your setting.
The rule of thumb is that people who live in milder climates will be able to spend less on a moderately efficient boiler, while people who live in colder climates should purchase the most efficient boilers they can afford. You can find out how efficient your current, and potential, boiler is by reading the yellow Energy Guide label that is required by law to be displayed on many appliances. The label should list the boiler’s Annual Fuel Utilization Efficiency (AFUE).
Every home is different, so your best bet is to call in an expert to assess your situation to make an appropriate recommendation. Most contractors can do a heat-loss, heat-gain assessment to determine the most cost-effective size for your setting. Some of the things he or she will take into account include:
- Size and setup of your home.
- How well insulated it is.
- Number of windows and their efficiency level.
- How much sun your home gets on a daily basis.
Other Factors That Can Make a Difference
In addition to the energy efficiency level and the size and the type of boiler you select (such as hot water or steam, fueled by gas or oil), there are several other options that affect the overall operation you can expect. Here are some factors to keep in mind when you are selecting the best fit for your home:
- Consider condensing boilers, which are very high efficiency and are a good choice for homes in colder climates. These work by recovering some of the heat that is wasted in a conventional boiler.
- Learn about the latest control options, including programmable thermostats, which will help reduce heat loss when the system is off or when the weather is warm. Programmable thermostats can be set to lower or raise the temperature throughout the day, depending on your family’s needs.
- Look for a boiler that is especially efficient with electricity usage. This will help keep your costs down.
- Check out combination boilers that are a water heater and heating unit in one. This can be a cost-effective choice.
You should also know that the latest crop of energy efficient boilers feature some important improvements that also lead to such increased efficiency. These include: electric ignition, so your pilot light doesn’t need to burn continuously; combustion technologies that produce more heat with a limited amount of fuel; sealed combustion, which is a safer technique to fuel the boiler using outside air; high-efficiency pumps that help move heated water more quickly through your boiler and heat your home in a more efficient time span; and induced draft fan or vent dampers that reduce the amount of heat that escapes through your chimney.
Getting More for Your Money
The cost of purchasing a new energy efficient boiler can vary a great deal, depending on where you live, the size and kind of boiler you select and the level of efficiency you desire.
The general range for a new energy efficient boiler, including installation, is from $3,000 to $7,000, but in some cases can be even higher. (Without installation, energy efficient boilers range from about $2,000 to $5,000.)
To determine if a new energy efficient boiler is a cost-effective option for you, you should calculate how long it will take you to recoup your initial investment in this item. You need to look at what you will spend on the equipment and the installation, as well as how much your fuel usage will decrease as a result of getting a higher-efficiency product.
Generally, the higher the energy efficiency of a boiler, the more expensive it is, but also the more you can expect to save on your heating bill. The most energy efficient boilers that pass strict guidelines set by the U.S. Environmental Protection Agency and the Department of Energy are given an Energy Star rating. You can use the chart below to help you compare what you are spending now to run your existing boiler to what it would cost to run an Energy Star–rated boiler or comparable product.
Annual Energy Bill Savings
| AFUE of New System | |||||
|---|---|---|---|---|---|
|
AFUE of existing System
|
80%
|
85%
|
90%
|
95%
|
|
|
50%
|
$37
|
$41
|
$44
|
$47
|
|
|
55%
|
$31
|
$35
|
$38
|
$42
|
|
|
60%
|
$25
|
$29
|
$33
|
$37
|
|
|
65%
|
$19
|
$23
|
$27
|
$32
|
|
|
70%
|
$12
|
$18
|
$22
|
$26
|
|
|
75%
|
$6
|
$11
|
$17
|
$21
|
|
|
80%
|
$6
|
$11
|
$16
|
||
|
85%
|
$6
|
$11
|
|||
To calculate your energy savings, find the AFUE for your current boiler on the left-hand side of the chart. Then find the AFUE along the top row for the new system that you are considering. See where the numbers meet to find out what you would save PER HUNDRED DOLLARS on your existing gas or oil bills. Let’s say your existing boiler has an AFUE of 70 percent, and the new energy efficient boiler will be 96 percent efficient. According to this chart, you will save $26 per $100 of your existing fuel bills. If you now spend $2,000 a year on gas or oil, you can expect to save $26 x 20 (or $520 a year). Of course, if gas or oil prices go up, your savings will increase even more.
Return on Your Investment
In addition to your energy bill savings, you should also calculate the return on your investment. Let’s assume that you spend $5,000 for a new energy efficient boiler installed in your home. If your heating bills will decrease by about $500 in the course of one year, you can divide the $500 savings by the $5,000 cost to come up with a 10 percent annual return on your investment. This means it will take you 10 years to recoup your costs if fuel prices stay where they are.
Environmental Savings
Experts estimate that boilers generate approximately 60 percent of all carbon dioxide emissions that come from homes. So when you switch to a more energy efficient model, you aren’t just helping to reduce your monthly expenses but at the same time are making a positive impact on the environment. With growing concern over the greenhouse effect and an increasing awareness of the need to reduce our carbon footprints, this can be a way to make a significant impact.
Other Ways You Can Make a Difference
In addition to (or instead of) replacing your boiler with the most efficient alternative, there are some other, simple steps you can take that will have a positive effect on your heating costs and on the environment, too:
- If you’ll be gone during the day, turn your thermostat down a few degrees (or set a programmable thermostat to do this automatically). This is an easy way to reduce your fuel usage without much effort.
- Turn down the temperature on your hot water boiler in the summer. Ask your service technician to show you where it is located and to recommend the best temperature setting.
- Keep your radiators and baseboards clear from carpets, furniture and drapes to get the full effect of the heat they generate.
- Maintain your steam heat systems regularly by checking the water level and removing trapped air and sediment. (Always use caution, though, as the steam can be extremely hot.)
- Get a tune-up as needed. The pros recommend that gas boilers be cleaned and tuned up every two years. Oil boilers should be done annually. In addition to prolonging the life and efficiency of your system, you will also reduce the carbon monoxide, smoke and other pollutions that your boiler generates, which will be better for the planet overall.