An oil furnace uses oil as a fuel source to produce heat, which is then re-distributed throughout your home to increase the temperature.

A furnace is a part of the heating system in which the combustion of fossil fuel and transfer of heat occurs. Furnaces can be fueled by natural gas or oil. An oil furnace is a type of heating system that burns fuel oil to heat your home. Oil furnaces are more common in colder weather climates, including the northeastern United States.

An oil furnace works by burning fuel oil in a combustion chamber. The heat created from the combustion is transferred to air passing through the furnace’s heat exchanger and then blown into your home. The fuel oil is stored in an outdoor tank and then pumped into the furnace. The main components to a furnace include burners and heat exchanger, blower and controls. 

Watch a video to learn how a furnace, heat pump, and AC work together.

Oil furnaces are different from gas furnaces in several ways. The biggest difference is that oil furnaces burn fuel oil, while gas furnaces typically use natural gas or propane. Additionally, oil furnaces tend to be less efficient and require more maintenance than their gas counterparts. Gas furnaces are typically more energy efficient with AFUE ratings between 80 and 97 percent, while oil furnaces range between 80 and 90 percent. You’ll also find differences between the cost of new gas and oil furnaces and the cost of fuel.

Pros: 

• Oil furnaces are usually less expensive to install.
• Oil furnaces generates more heat per BTU than a gas furnace
• Oil furnaces can be installed in areas where gas pipelines aren’t available

Cons: 

• Oil furnaces typically require more maintenance than other types of furnaces 
• Oil furnaces can be less efficient than a gas furnace
• Fuel oil must be purchased and stored, which adds an extra cost for homeowners 

In conclusion, an oil furnace is a great option for those looking for a reliable and efficient way to heat their home at a lower price point than other types of furnaces. However, it is important to remember that oil furnaces require extra maintenance and care in order to ensure proper operation and safety. If you think an oil furnace might be the right choice for your home, contact a trusted HVAC professional to discuss the details of installation, maintenance, and other factors that can help you make the best decision for your home. 

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Anne Fonda, Content Writer at Trane Technologies

A Content Writer with Trane Technologies, Anne Fonda researches topics and writes for Trane® and associated residential HVAC brands. She works in collaboration with Trane Technologies subject matter experts, offering easy-to-understand, informative content on complex topics. Her goal is to help consumers make informed decisions on the products and services they need.

She has written for HVAC and other service provider websites for over 16 years. Before transitioning to web content writing, Anne had a 14-year stint as an award-winning journalist. She graduated cum laude from the University of Missouri-Columbia School of Journalism. When she’s not working, Anne enjoys playing word games, reading, gardening, spending time with family, and visiting gardens and museums.

Expert review by: John Kim, Senior Product Manager, Furnaces