? As diesel fuel approaches $6 per gallon, Maryland homeowners who heat their homes with heating oil may want to start looking closely at their options before the heating season.
Diesel and No. 2 home heating oil are closely related petroleum products. When diesel and wholesale distillate prices rise sharply, home heating oil can face similar price pressure.For homeowners in Southern Maryland and the Washington suburbs—including SMECO, Pepco and Washington Gas customers—this may also be a good time to investigate available EmPOWER Maryland energy-efficiency incentives before replacing an older heating system.
? HEATING OIL If residential heating oil reaches roughly $5.00–$5.50 per gallon, a household burning 700 gallons during a heating season could spend approximately: ? $3,500–$3,850 per heating seasonAt $5.50 per gallon, a 275-gallon tank filled with 200 gallons would cost about $1,100. Heating oil is therefore one of the heating sources most exposed when petroleum and diesel prices rise.
? PROPANE Propane prices don’t follow diesel as closely as heating oil.At approximately $3.50–$3.80 per gallon, 700 gallons would cost approximately: ? $2,450–$2,660 Actual consumption varies considerably depending on the house, furnace efficiency, weather and whether propane also supplies hot water, cooking or other appliances.
? NATURAL GAS For homes already served by Washington Gas, a modern high-efficiency natural-gas furnace may remain an attractive alternative to heating oil. Washington Gas tells Maryland customers to ask participating contractors about available EmPOWER Maryland rebates and incentives for qualifying high-efficiency equipment. Converting a house that does not currently have natural-gas service is different. The homeowner first needs to determine whether a Washington Gas main is available near the property and what extending service and installing the equipment would cost.
? MODERN HEAT PUMPS
Modern heat pumps don’t burn oil, propane or natural gas. They move heat into the house using electricity.A properly sized modern heat pump can deliver approximately 2–4 units of heat for each unit of electricity consumed, depending upon outdoor temperature and equipment. Modern cold-climate heat pumps are also designed to continue operating during much colder temperatures than older heat-pump systems. For a homeowner currently paying $5+ per gallon for heating oil, switching to a modern heat pump could dramatically change the economics of heating the house.
? DON’T FORGET ABOUT EmPOWER MARYLAND Before purchasing a new furnace or heat pump, check the incentives available through your utility.
? PEPCO CUSTOMERS: Pepco currently says qualifying Maryland homeowners can receive rebates of up to $15,000 for eligible whole-home improvements when a project includes replacing combustion-fuel equipment—oil, propane or natural gas—with qualifying electric heat-pump equipment.
? SMECO CUSTOMERS: SMECO participates in EmPOWER Maryland, with energy-efficiency programs and incentives available for qualifying home improvements and heat-pump technology. Check the current SMECO program before signing an HVAC contract.
? WASHINGTON GAS CUSTOMERS: Maryland Washington Gas customers may also have access to EmPOWER incentives for qualifying high-efficiency natural-gas equipment. Washington Gas says Maryland customers seeking qualifying high-efficiency-equipment rebates must work with a participating contractor in the EmPOWER Contractor Network.
?? Important: EmPOWER isn’t simply offering everyone a rebate for converting from heating oil to propane or natural gas. Incentive amounts depend on the utility, equipment, efficiency requirements and type of project. The largest electrification incentives can favor replacing oil, propane or natural-gas equipment with qualifying electric heat pumps.
? SO WHICH HEATING SYSTEM MAKES SENSE??? Heating Oil: Increasingly expensive if petroleum prices remain elevated and directly exposed to the same distillate market affecting diesel.
? Propane: Less directly tied to diesel and may make sense where natural gas isn’t available, but homeowners still depend on fuel deliveries.
? Natural Gas: Potentially attractive where Washington Gas service already exists, especially with modern high-efficiency equipment.? Modern Heat Pump: Potentially the lowest operating-cost option for many Maryland homes, particularly when replacing expensive heating oil—and current utility incentives can significantly reduce the cost of conversion.
BEFORE REPLACING YOUR HEATING SYSTEM: Don’t just ask an HVAC company, “How much is a new furnace?”Ask:”What EmPOWER Maryland rebates do I qualify for through SMECO, Pepco or Washington Gas, and what would my total price be AFTER all available incentives? “With diesel approaching $6 per gallon, that question could become increasingly important for Maryland homeowners heading into another heating season. The exact rebate should always be verified before signing a contract because eligibility and incentive amounts depend on the equipment, project and utility. Maryland’s Energy Administration confirms that SMECO, Pepco and Washington Gas are among the EmPOWER utility territories with programs potentially supporting heat-pump technology. Official program information: [Pepco Home Performance rebates](https://homeenergysavings.pepco.com/md/residential/home-performance-with-energy-star-program/rebates?utm_source=chatgpt.com) · [SMECO energy-efficiency information](https://www.smeco.coop/about/news/bill-inserts/?utm_source=chatgpt.com) · [Washington Gas heating and incentives](https://www.washingtongas.com/ways-to-save/home-owners/gas-appliances/home-heating?utm_source=chatgpt.com).
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