Comparing Heating Oil vs. Electric Heat

Which home heating option is best in Northern New Jersey?

For homeowners in Morris Plains and across Northern New Jersey, deciding on the most effective and efficient home heating system can be a challenge. Is a traditional oil-powered furnace or boiler the right choice, or does it make more sense to convert to another system, like an electric heat pump?

At Dixon Energy, we install and service a full range of heating systems, including electric, heating oil and gas. Because we work with all these options, we can give you a candid, expert answer to the question of which system is best for your home and budget.

Heating Oil Systems and Heat Pumps: How Do They Work?

Understanding how these systems operate is the first step in making an informed choice.

Heating oil systems, whether furnaces or boilers, generate heat directly. A burner combusts heating oil, which then warms either air in a heat exchanger (for furnaces) or a tank of water (for boilers). This heated air or water is then distributed throughout your home via ducts or pipes.

Electric heat pumps don’t create heat — they move it. The system consists of an outdoor unit and one or more indoor units. In winter, it extracts heat from the outside air — even when it’s cold — and transfers it inside. In summer, the process reverses, and it functions like an air conditioner, moving heat from inside your home to the outdoors.

Which System Generates More Heat?

When it comes to raw heating power, heating oil is the clear winner. The amount of heat an energy source can produce is measured in British thermal units (Btu).

Let’s compare:

• 1 gallon of heating oil produces approximately 138,500 Btu.
• 1 kilowatt-hour (kWh) of electricity produces 3,412 Btu.

This means you would need to use over 40 kWh of electricity to generate the same amount of heat as a single gallon of heating oil. During a frigid New Jersey winter, the robust heat output from an oil-fired furnace or boiler provides powerful, consistent warmth, no matter how cold it is outside.

Which Option is More Efficient?

This comparison is more complex. Heat pumps are incredibly efficient for both cooling in the summer and heating during the milder “shoulder seasons” of fall and early winter.

However, their efficiency drops significantly as outdoor temperatures plummet. When it’s freezing, a heat pump must run almost constantly to maintain a comfortable indoor temperature, which can lead to higher electricity bills.

Talk to the Dixon Team about the Best Heating Option

So, what’s the right choice for your home? The answer often depends on your priorities.

• Upgrading your current oil heating system to a new, high-efficiency model can be a very cost-effective solution that guarantees powerful warmth throughout the winter.
• A combination or “dual-fuel” system might be the ideal balance. You can use a heat pump for efficient cooling in the summer and heating in milder weather, while relying on your oil furnace or boiler as a dependable backup when the temperatures truly drop.
• Propane is also an excellent option. Dixon Energy also installs and services highly efficient propane heating systems, which offer powerful, affordable home heating.

The Dixon Energy team is here to help you navigate these options. We’ll assess your home’s specific needs, discuss your budget and provide a clear recommendation to ensure your year-round comfort.

Contact Dixon Energy today for a FREE, no-obligation quote on new heating equipment.