Electricity and oil prices can vary significantly from region to region and over time. It's essential to compare the current rates in your area to determine which fuel source is more cost-effective. You can usually find these rates on your utility bills or by contacting your local utility companies.
The efficiency of your electric hot water heater and oil furnace also plays a significant role in determining the cost of hot water. Newer, more efficient appliances can save you money on energy bills, regardless of the fuel source used. If your oil furnace is old or inefficient, switching to an electric hot water heater could lead to cost savings, even if electricity rates are slightly higher than oil prices.
Your hot water usage patterns can also impact the cost-effectiveness of electric hot water. Electric hot water heaters work best when used consistently throughout the day. If you have significant periods of inactivity when you don't need hot water, an electric hot water heater may not be the most efficient option. In such cases, an oil furnace with a separate hot water tank might be a better choice.
To accurately determine whether electric hot water is cheaper than oil in your specific situation, you should calculate the total cost of ownership for both options. This involves considering the initial investment in the appliances, installation costs, energy consumption, and maintenance costs over the lifespan of the appliances. By comparing these costs, you can make an informed decision about the best water heating system for your needs and budget.
