The Economics of Service Plans

oil truck deliveryWe 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:

oil service plan comparision

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.

Demystifying Heat Pumps

Air Source Heat Pump Outdoor UnitHeat 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.

Since the Hallowell failures, other companies such as Mitsubishi and Fujitsu perfected the cold climate heat pump. In fact, there are heat pumps that work down to -17˚F and are functioning successfully in Maine. Yet, when we introduce this technology to new clients, we often find ourselves once again leaping the obstacle of an uncommon heating system coupled with a company failure that taints the heat pump name.

The truth is air source heat pumps and heat pump water heaters  are viable options for our cold climate. With 200-300% efficiency, using heat pumps for heating your home or hot water can add significant savings to your bottom line. It’s like buying oil for $1.50 per gallon or saving 66% on your electric heat bill.

Our goal over the next couple of months is to introduce you to this wonderful technology and help you feel more comfortable with it.  By showcasing happy clients that use either air source heat pumps for heating and cooling or heat pump water heaters, you will learn more about the technology and how it works.

Keep your eyes peeled for our first case study on the Handcraft building at Merriconeaq Waldorf School in Freeport, Maine. This 2500 square foot,  passive solar, super insulated building stays cozy warm with 2 Mitsubishi Hyper Heat Air Source Heat Pumps (ASHP). They set their ASHP’s on 65 and their classroom temperatures stay a comfortable 68-70˚F on most winter days.

After a recent visit, we learned that even on the coldest days, the backup heat has yet to kick on. The classroom teacher shared that she rarely thinks about the heat which, Will Hight, the school caretaker explains is a good thing as it means they are toasty warm, happy, and productive. Stay tuned, we will be sharing even more about the Waldorf School’s air source heat pump story in our next newsletter and on our blog.

In the future, we hope to dispel the myths presented by heat pumps. If you have questions about heat pumps or any of our technologies, reach out to us by emailing info@revisionheat.com or on Facebook or Twitter. We’d be happy to answer your questions.

Heat Pump Resources:

I Thought Heat Pumps Didn’t Work in Maine
Freeport School Saves Before & After with Air Source Heat Pumps
Merriconeaq Waldorf School Photo Gallery
Air Source Heat Pumps
Heat Pump Water Heaters
Which Heat Pump Water Heater to Use

Coastal Energy Expanding Bio-Fuel Delivery to Bangor and Brewer

With the assistance of reVision heat, Coastal Energy, a biofuel provider, is pleased to announce their expansion of their delivery area to include Brewer, Bangor and surrounding areas. Coastal Energy offers the unique option of providing B-5, B-10, B-20, or a blend up to B-100 to their clients, while reVision heat will provide service and oil boiler cleaning.

“It is our goal to find the perfect blend of biofuel to oil for the client’s heating system,” said Kate Folger of Coastal Energy. “For those clients who have no preference, we supply B-10, but we are absolutely able to do a custom blend at no extra charge. Prices are comparable to standard home heating oil and we price match whenever possible.”

While Coastal Energy is currently using biofuel that is provided by U.S. producers, they are actively pursuing a recycled oil system similar to Maine Standard Biofuels.  Using locally collected vegetable oil through an established collection program will allow Coastal Energy to return the vegetable oil as a “green” renewable fuel, and, in turn, minimize the need to import.

When switching from standard oil to a biofuel blend please keep in mind biofuel acts as a natural cleansing agent.  Tanks that previously stored standard oil may have sludge build up that biofuel will disperse.  New converters to biofuel may experience a clogged nozzle as an effect of the dispersed sludge if they do not have their heating system maintained regularly.

To minimize clogging issues, it’s recommended to have your system cleaned within 2 – 3 weeks after conversion.  reVision heat offers different service options depending on whether you are a current customer or how long it’s been since your last oil boiler cleaning. reVision heat not only cleans and maintains oil boilers, they will also optimize your oil boiler to use less oil.

Ready to Get Started?

Order FuelCoastal Energy

kfolger@coastal-energy.com
Northeast Harbor – 276-5210
Ellsworth – 664-1901
Bucksport – 469-6700
www.coastal-energy.com

Schedule Service

info@revisionheat.com
207-989-8500
www.revisionheat.com

 

 

Freeport School Saves Before & After with Air Source Heat Pumps

Merriconeag Waldorf School Handcraft BuildingThe Merriconeag Waldorf School in Freeport, Maine recently built this beautiful building to house their Arts and Crafts classes. Their building is a wonder of modern building science and was built to amazing standards.  reVision heat was brought in to supply the heating system. In this case, the entire building is being heated by two 18,000 BTU Mitsubishi Hyper Heat air source heat pumps.

Typically, a well insulated building without access to Natural Gas would use and install a high efficiency Propane boiler. Which would all be well and good, except Propane is a derivative of Crude Oil just as Oil is, and we’re running out. Not to mention the fact that like oil it’s expensive.

Not only is the fuel expensive, but so is the boiler. A typical new, high efficiency gas boiler costs around $9,000 to install and that’s just in the basement. In new construction, a distribution system needs to be included, easily pushing the final cost above $15,000.

Air Source Heat Pump - Indoor Output Unit

Indoor Output Unit for Air Source Heat Pump

The Merriconeag Handcraft building is heated by two heat pumps, one in each room. The system cost about $10,000 to install, significantly less than the propane boiler option.  And, to boot, will cost considerably less to operate.

Propane, at $3.50 a gallon, run at 90% efficiency, costs $41 per Million BTU’s.  Interestingly, resistive electricity costs $44 per Million BTU’s. Propane is almost as expensive as Electricity for heat now. By contrast, the air source heat pump will run at a seasonal efficiency of better than 300%. Which means that it will cost about 1/3rd less to operate, at $14 per million BTU’s.

Air Source Heat Pump Outdoor Compressors

Where the Magic Happens - Outdoor Compressors

The fact that heat pumps were an option at all in this project owes to the excellent work on the building envelope by the Waldorf School. If the building needed 50% more heat, it would have required another heat pump. While the building would most likely do fine without any back up, they’ve installed resistive electric back up radiators just in case. In the end, they have effectively taken money out of the mechanical system and put it into the walls. A solution that will create long term savings for the school.

Interesting Side Note: The engineer who spec’d this system specified a system twice as big. I looked at the heat loss numbers and proposed a smaller, much less expensive system that better matched the heating demand for the building. The folks at the Waldorf School got quotes based on the engineer’s design, which were significantly higher, as bigger heat pumps cost more to install. It turns out the engineer’s design included air conditioning load for the Summer months. In their case, the building will not be in use in the summer and will not need a larger system to accommodate air cooling during those months. It’s telling, however, that heat pumps require well insulated buildings to be a cost effective option.

A Great Night Showcasing the Future of Home Heating – Off Oil Open House 2012

Off Oil Open House Bustling with Activity

reVision heat in Brewer opened their showroom doors last Friday, January 6, 2012 for an educational evening discussing the Future of Home Heating in Maine. Despite a dreary day filled with snow and sleet, our Off Oil Open House was a success. Over 100 people weathered the storm to attend. Inside our showroom, people warmed themselves up by the heat of our ÖkoFEN fully automated pellet boiler and Rika pellet stove as they learned more about oil heat alternatives and how to save money on their current heating system.

“I am encouraged by the turn out. Even with less than perfect weather, folks came out to see what the future of home heating looks like.  I hope they left armed with enough information to make a decision about their next step on the road off oil.” ~Lee Landry, reVision heat

Ken Fletcher & Lee Landry

Kenneth Fletcher & Lee Landry

Mingling in our crowd were representatives from Senator Snow & Collins offices, Kenneth Fletcher, Governor LePage’s Director of Energy and Independence, members of Bangor Greendrinks, Unity College, Eastern Maine Community College, Bangor Gas, ReVision Energy staff, local auditors, realtors, building contractors, happy clients, and new friends.

Our managing partners spent the evening sharing insights and education on various heating technologies such as Natural Gas Boilers/Furnaces, Pellet Boilers, Gasifying Wood Boilers, Air Source Heat Pumps, and Pellet Stoves.  Many were surprised to hear that while we will not install an oil boiler, we do find ways to make them run more efficient and use less oil. Four lucky attendees will get to experience a savings of up to 100 gallons of oil per year with the Free Oil Boiler Optimization they won.

Pellet Boiler DeliveryAround 6pm, Maine Energy Systems (MeSys) filled our 4 ton pellet hopper using the truck that Trans-Tech, a Brewer company, custom designed for them. Dutch Dresser from MeSYS enthralled our crowd with a few words on the importance of using biomass for home heating.

By the end of our evening, the snow came to a close and our attendees left with great insights on alternative heating in Maine and a safer drive home to enjoy. We want to extend our gratitude to everyone that attended or made our open house a big success. We appreciate you all. Enjoy more photos from the event on Facebook.