The Economics of Service Plans
We talk to many people about signing up with the reVision heat service plan who have been using one of the major oil company’s service contracts for years. We’re convinced that, as a general rule, it makes no sense to let the people selling you oil also be the ones advising you on your options, and maintaining your system. There simply isn’t anything in it for them to make your system use as little energy as possible OR advise you on options that reduce or eliminate the amount of fossil fuel you consume. There are numerous independents out there who have no active economic interest in having you burn less fossil fuel; they were all trained by the big oil companies and they have all been fully indoctrinated into the stories that they tell.
Let’s look into these plans that the oil companies offer, and see how they compare. The basic deal is this; you promise to buy a certain amount of oil and they will maintain your system for a rate that includes that maintenance. Some deals offer price protection so that in the event that oil goes higher than some high number, they’ll lock you in at a lower price.
I don’t need to know the details to know that unless the oil companies were going to make more on you with the plan than without it, they wouldn’t offer it. That’s basic capitalism. You’re buying insurance on your oil system, and, with all insurance and race track betting, the house is going to walk away on top. Here is how they do it.
- Charge a premium for the fuel. The typical premium over cash oil is about $.55 a gallon. With 1000 gallons of use, that’s a $550 premium. A basic cleaning costs about $150, so you’re paying $400 a year for insurance.
- Only guarantee equipment that has a low chance of failure. In order to qualify for the plan, you have to bring your boiler up to their standards. Doing so means that you’ll be charged a premium to upgrade equipment that isn’t broken, so there is a good chance it won’t fail on the oil companies dime.
- Lock you into Oil Sales. As people have done a better job insulating their homes, adding pellet stoves and solar hot water, the oil companies have realized that they need to require you burn a minimum number of gallons. With these deals, you are legally obligated to purchase a minimum amount of fuel from them, whether you need it or not.
The $550 premium is just one side of the equation. By having the oil companies in your house selling you oil, you’re missing the opportunity to have reVision heat save energy. Simply by installing the smallest size nozzle for any given boiler, we expect to save our clients from 5% to 10% of their energy costs. Smaller nozzles lower stack temps, which put more heat into the boiler and less up the chimney, and increase run times, which means the boiler spends more of its time running more efficiently. If reVision heat can save you even 5% on 1000 gallons, that’s 50 gallons a year. At the higher price that you would have paid the oil company, that’s $190 a year. Here is how it adds up for a typical customer in Bangor:

At the end of the day, you’re paying $470 a year for insurance that you are likely NEVER to use. Remember, they charged you at the beginning to make sure your system won’t break. What about the possibility that your boiler cracks? It is possible, but it’s highly unlikely. We pull out boilers that are really old. The oil company knows the odds of your boiler failing, and they won’t insure it if there is any likelihood of this happening. If it does fail, they’re going to install the least expensive oil boiler for you, guaranteeing that you burn oil for the next 20 years.
Break the cycle. Get off oil, and start by getting the oil company out of your basement and reVision heat in. We want to get you off oil; it is as easy as calling us.

Heat pumps are an enigma in Maine. Most Mainers aren’t aware that in many parts of the country, heat pumps are a primary method for heating and cooling buildings. In cold climates like ours, heat pumps were typically not used for heating. One Maine company, Hallowell, wanted to change that by introducing the first cold climate heat pump. Unfortunately, Hallowell didn’t have the success they hoped. Instead, the company went out of business and had many cold weather heat pump failures that left a bad impression in people’s minds.





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