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Do you need a new boiler?

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When Tom Regan decided to replace his heating system last

fall, he was armed and ready to make an intelligent decision.

"I did all the research, all my homework," says Regan, 59, of Plainview.

"I'm someone who pays attention to these kinds of things, and I knew exactly

what was happening with home heating oil."

So Regan had an Italian-made Biasi oil-fired boiler installed for about

$6,000. The system features three separate baseboard zones, so heat is directed

to specific rooms on demand, and direct venting, which reduces harmful

emissions.

The new boiler is so efficient even Regan was surprised at his savings last

winter. In the middle of remodeling his four-bedroom large cape, with most of

his attic insulation removed, Regan found his new heating system used about 300

fewer gallons of heating oil than his previous boiler.

"The old boiler had been in the house 31 years ago when I moved into it,"

says Regan of a Beckett unit dating back to perhaps the early 1960s. "With the

old boiler, I used about 800 gallons during an average winter. Last winter,

with the new boiler, I used a little more than 500."

That a new system uses less oil and saves consumers money should be no

surprise, says Hugh McMillan, vice president of the American Society of

Heating, Refrigerating and Air-Conditioning Engineers, an Atlanta-based trade

association. "Today's technology is designed to save energy, to be more

efficient," says McMillan.

When to buy new

So when should homeowners invest in this new technology?

With cold weather a few months away and concerns over the rising cost of

home heating fuel and natural gas, doesn't it make sense to upgrade sooner

rather than later?

"Absolutely," says Ed Schoen, owner of Prestige Heating Service in

Massapequa. "New is good. New technology can save money."

Experts like McMillan and Schoen agree that switching to a new heating

system makes a lot of sense, especially if a home's old system in 15 to 20

years old.

Why? Because in 1992, the United States Department of Energy forced the

heating industry to meet minimum standards for efficiency. Basically, the

federal ruling said that all furnaces sold in the United States must have a

minimum annual fuel utilization efficiency rating of 78 percent.

"If someone has a heating system from the 1970s or 1980s, there's a good

chance it could be 60 percent or 70 percent efficient, maybe less," Schoen says.

What's that mean? Well, your old furnace is literally wasting fuel. At 70

percent efficiency, a furnace uses 70 percent of the fuel it drinks to heat the

interior of a home; the other 30 percent goes up the chimney, as exhaust,

waste gases. Imagine having a heating system that has a 55 percent efficiency

rating, Schoen says. "That means almost half of every dollar you spend on

heating oil goes out the chimney," he says.

Because it reduces fuel use and costs less to operate, a new

high-efficiency heating system often pays for itself in less than 10 years,

experts say. On Long Island, homeowners can expect to pay anywhere from $2,500

to $5,500 for the conventional, problem-free installation of a new heating

system. Warm-air furnaces with medium efficiency ratings (more than 80 percent)

will run between $2,500 and $4,000. High-efficiency furnaces (more than 90

percent efficiency rating) run between $3,500 and $5,500, installed. Hot-water

systems often run from $4,000 to $5,000, installed.

Many of today's gas-fired furnaces, whether hot-water systems or forced-air

units, run at 93 percent efficient or higher. Oil-fired systems typically are

rated between 84 percent and 87 percent.

New high-tech systems

Without getting too technical, today's residential systems reclaim energy

and analyze outdoor temperatures to produce more even, comfortable interior

heat, experts say. High-end gas-fired warm-air furnaces - from manufacturers

like Carrier, Bryant, American Standard, Ducane and Trane - can operate in two

stages and with variable fan speeds. When running at 50 percent capacity, the

units use less fuel and slower fan speeds. Single stage furnaces run at 100

percent capacity - all the time - with one fan speed.

Oil-fired hot-water units - from manufacturers like Biasi, Buderus Peerless

and Weil-McLain - have transformed into triple-pass boilers, which store

smaller amounts of water - often four times less than conventional boilers - in

three different compartments. Heat slowly rises through the compartments

before it escapes through the exhaust. In older hot-water systems, heat

exchangers raged over 20 gallons of water, with most of the heat racing to the

exhaust.

Yet despite the advanced technology, most people wait till the last minute

to replace their heating systems. "It's often because they aren't educated

about their own heating system," says Craig Haft, co-owner of Sunray Services,

a Hauppauge-based heating, ventilation and air conditioning contractor. Haft

likens furnaces and boilers to roofs. "People don't do anything about their

roof till it leaks," he says. "Same thing with the furnace.

"They don't call till it breaks down."

McMillan says that any heating system 10 years or older should be inspected

annually. In oil-fired systems, an annual inspection (from about $125) is

recommended. In gas-fired, warm-air systems, "10 years is sort of the line of

demarcation," says Eric Haft, Craig's brother and a Sunray co-owner. After 10

years, a gas-fired system should be inspected annually (about $75). Rust can

build up or cracks can develop in the heat exchanger, Eric Haft says. These can

lead to high levels of carbon monoxide inside the home.

Beware of carbon monoxide

Regardless of age and type, homeowners should not operate their heating

systems unless they have a carbon monoxide detector installed in at least one

room at each level. High levels of carbon monoxide can be a sign of a faulty

heating system.

"Replacing a system might be a safety issue," Craig Haft says. "If your

furnace takes a long time to heat up, if it always seems to be running, if it

is noisy or you smell unusual odors - these could be signs that you need the

system inspected, at the very least, or replaced."

Craig Haft says he installed a new forced-air, two-stage, high-efficient

system by Bryant last winter. When he bought his home in South Setauket a few

years ago, it was equipped with a mid-efficiency builder's grade furnace.

"There is a level of comfort, too, and that's a big feature," he says. "You

can't beat that; over the life of my furnace, I'm using less fuel, saving money

and getting more comfort."

McMillan says homeowners can rely on good, old-fashioned intuition - and

common sense - with their heating systems. "Most people, if they really think

about it, can tell when their system isn't working right. If you've lived in

your home for about 10 years, you can develop a feel for such things."

EFFICIENCY

Before you buy, you might want to know what determines a high-efficiency

furnace.

A furnace's heating efficiency is measured by AFUE - annualized fuel

utilization efficiency. The AFUE measures the amount of heat actually

delivered to a house's interior. So a furnace with an 80 percent AFUE rating

converts 80 percent of the fuel supplied to heat - the remaining 20 percent is

sent up the chimney as exhaust.

In high-efficiency furnaces, with an AFUE rating of 90 percent or higher,

according to the United States Department of Energy, most of the fuel is used

to deliver heat. The most efficient fossil-fueled warm-air furnace has an AFUE

rating of 96.7 percent and is made by Carrier.

The Energy Department determined that all furnaces, including boilers, sold

in the United States must have a minimum AFUE of 78 percent, beginning Jan. 1,

1992. Depending on the fuel, the minimum AFUE ratings for heating systems are:

78 percent for noncondensing (look at the furnace's label to check type),

fossil-fueled, warm-air furnaces.

80 percent for fossil-fueled boilers.

75 percent for a gas-fueled steam boiler.

The Energy Department defines low-efficiency heating systems as those with

AFUE ratings between 68 percent and 72 percent, natural draft that creates a

flow of combustion gases and a continuous pilot light. Mid-efficiency systems

have AFUE ratings between 80 percent and 83 percent, exhaust fans that control

combustion air and gases and electronic ignition (no pilot light).

High-efficiency systems have AFUE ratings between 90 percent and 97 percent,

sealed combustion and a second heat exchanger that condenses flue gases.

Knowing the AFUE of both your existing system and the one you plan to buy

will help you calculate annual savings through replacement.

Some older units are rated by combustion efficiency. Multiplying the

combustion efficiency by .85 will give you an estimation of the old unit's AFUE.

- GARY DYMSKI

PAYBACK

Deciding on whether to purchase a high-efficiency furnace or one that meets the

minimum standards can be confusing. The real trick is figuring the payback

period, or how long it takes for a more efficient appliance or unit to cover

its purchase, installation and operating costs.

Here's an example, courtesy of the U.S. Department of Housing and Urban

Development:

The high-efficiency furnace is $3,000, and the minimum-efficiency model is

$1,000. The difference between the two, $2,000, is called "first cost," or the

incremental cost of buying a new furnace.

Next, determine the annual energy cost of each furnace. Let's say the

difference is $300. That means purchasing the high-efficiency model saves $300

annually in natural gas or heating oil.

To determine the payback period, divide "first cost" ($2,000) by annual

energy cost ($300). The payback period is 6.7 years. This means the $300 in

annual energy savings will pay for the incremental cost of the high efficiency

furnace (an extra $2,000) in 6.7 years.

Remember, when calculating annual savings, consider the rising cost of

energy - natural gas, heating oil and electricity. Most appliances, including

furnaces, feature EnergyGuide labels that can help determine the new unit's

annual energy cost. To calculate annual energy cost for a home, you'll need to

know the energy rate of your utility (cents per therm or kilowatt-hour) or the

cost of a gallon of heating oil. Save your old receipts.

Visit the HUD Web site ( www.hud.gov

/offices/cpd/affordablehousing/training/web

/energy/cost/) for tips on purchasing a new heating system.

- GARY DYMSKI

What could you save?

This chart by the American Council for an Energy-Efficient Economy (ACEEE.org

can help determine potential savings when replacing a residential heating

system.

To determine savings, find the annual fuel utilization efficiency (AFUE) rating

of the old system (horizontal row), then choose the number from that row that

corresponds to the new system's AFUE (vertical row). The intersecting number is

the projected savings per hundred dollars of existing fuel bills.

RATING OF A NEW SYSTEM

75% 80% 85% 90%

95%

Rating of old system 50% $33 $37 $41 $44 $47

55% 26 31 35 38

42

60% 20 25 29 33

37

65% 13 18 23 27

32

70% 6 12 17 22

26

75% 6 11

16 21

80% 5

11 16

85%

5 11

Example: If a system's current AFUE is 65 percent and you plan to install a

high-efficiency natural-gas system with an AFUE of 90 percent, then the

projected saving is $27 per $100. So, if the annual fuel bill is $1,300, then

the total yearly savings should be about $27 x 13 = $351.

SOURCE: AMERICAN COUNCIL FOR AN ENERGY EFFICIENT ECONOMY

WRITE TO: Gary Dymski, 235 Pinelawn Rd., Melville, NY 11747-4250 or e-mail

Gary.Dymski@newsday.com

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