oil use for the year. payback?

[zrtmatos]

So I was comparing oil consumption from last year to this one and have figured I am paying about $1100 for a winters use. I am on target with having spent $700 so far this year.
So if spent $1000 for a 5 year old stove and another $1000 in pellets how long before I get ahead on this?
My guess is 3 years if I would have been using oil only. A similiar home spends about $2500 a year on oil.
Anyone have a theory of what my payback time actually is?

 

[john193]

I'm working this out for you, but how much do you spend in pellets each year? $1000?

 

[john193]

Assuming you spend 1000/year on pellets this is how it breaks down. The first year, the stove cost you 1000, pellets 1000 and oil 1100. Which is where the 3100 comes from. From there on, you can look at the payback column and see that you will be in the red until year 3, where you will be ahead 200 dollars. Assuming all variables stay the same, you will net 400/year, so you are correct, three year payback.

 

[zrtmatos]

Thanks John. You spelled it out a lot better than I could. I was hoping it would be less than 5 years so it was worth the investment in more heat.

 

[iceguy4]

That's not a bad payback! Plus I'm sure you keep the house warmer too.. I'm gonna need 5 years to break even (depending on what fuel calculator you use) based on 9 tons... I expect to need a ton or two to finish up the heating season (best guess) and that will shorten my payback
My oil boiler has only been fired to "exercise", but is plumbed to come on if the pellet boiler cant keep up. Last year when I was only heating one building , it always kept up...but this year will be the test as I expect to have that building on this weekend!
All of these number calculations don't factor in the feeling I get from ...I guess..."sticking it to the man" I purchased a wood furnace in '81, burned 7 full cords(cut ,trucked, split and stacked by me) ...All to save the cost of...get this ... natural gas That deal I didn't calculate the payback...(more then likely beyond the end of Mayan calendar)LOL