So are many of his neighbors. NStar is running a new gas line to his
neighborhood after nearly two-thirds of the households told the utility
they would consider converting.
Even with conversion costs, demand is up for cheaper alternative to heating oil
With prices for natural gas plummeting, and new burners and boilers
significantly more efficient, Loderick expects to recoup the $10,000 or
so cost to convert his system fairly quickly; in winters past Loderick
kept his house cool, yet still paid a stiff heating bill.
“Most
of the time the house is only about 64 degrees, except for a couple
hours in the evening,’’ Loderick said. “That’s $4,000 a year to keep our
area fairly cool.’’
Long the one region in the country where oil remains a popular fuel
for heating, New England appears to be on a natural gas binge. At NStar,
conversions have tripled over the past three years; National Grid said
conversions are up 34 percent in the same period.
Natural gas is enjoying a surge in popularity for several reasons.
Production in North America has increased substantially over the past
decade, and energy officials predict the nation has ample supplies for
decades to come. That has resulted in prices falling to the lowest
point in a decade. Gas prices have also been more stable, less subject
to the wild swings that have roiled the international oil markets the
past several years.
Though this past winter was mild, oil customers still paid much
more to heat their homes - $2,238 on average - than did natural gas
consumers, who shelled out $868 on average, according to the US Energy
Information Administration.
The cost of converting can vary widely, from a few thousand dollars
to update a younger system, to more than $10,000 for a complete kit of
burner, boiler, hot water tank, and chimney liner.
Utilities have incentives to ease the cost. GasNetworks, a collective
of New England natural gas companies, offers rebates from $400 to
$1,500 for high-efficiency boilers, furnaces, and other equipment.
Zero-interest loans are also available.
Another compelling reason: new gas burners are significantly more
fuel-efficient than older heaters, so consumers save twice - once on
the low price, and a second time on less consumption.
“I just tell people, in general, that this piece of natural gas
equipment only wastes 5 percent of what you burn and that piece of
equipment over there wastes 20 percent of what you burn,’’ said Joseph
Wood, owner of Boston Standard Plumbing, Heating, and Cooling, a heating
