Price comparison | Heating with oil or gas: which is cheaper?

Heating costs have been increasing drastically for several years. For a while, gas heating was cheaper than the oil variant. But the price difference is getting smaller and smaller - is it worth switching?

Overview

The costs of gas, oil and electricity have been rising sharply since September 2021. This is confirmed by current figures from the Federal Statistical Office in Wiesbaden. Compared to the previous year, the prices for heating oil increased by around 76.5 percent, for natural gas by 5.7 percent and for electricity by 2.0 percent.

Since we are facing a cool winter in Germany and therefore an expensive heating period, the question arises: What can be used to heat more cheaply? The comparison portal Verivox compared the figures for t-online. A model household of three to four people with an annual consumption of 20,000 kWh was assumed.

How to save heating costs

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Heating with gas

According to Verivox, a household with an annual gas consumption of 20,000 kilowatt hours pays - that corresponds to a 180 square meter house -, in 2020 an average of 1,047 euros in heating costs. In the previous year, the charges amounted to 1,150 euros – so much more.

Given the current average gas price of 7.55 cents, the costs for the 2021 heating season are likely to increase to around 1,510 euros for the same household. This results in a price increase of 360 euros within one year.

Heating with heating oil

For the past heating season (2020), an equivalent household had to pay around 908 euros for heating with heating oil. That is significantly less than in 2019. Here the same amount of heating oil (20 hectoliters) cost 1,283 euros – a price difference of 375 euros.

At the start of the heating season, however, the prices for heating oil increased significantly. A three- to four-person household would currently have to reckon with costs of up to 1,913 euros for the 2021 heating season if the price of heating oil continues to develop accordingly. That is even significantly more than the figures estimated by the Federal Statistical Office. Added to this is the recently introduced CO2 surcharge.

Heating with electricity

Due to rising electricity prices, heating with only electric heating or night storage heaters is not profitable, explain the experts at Thermondo GmbH. The electricity price is currently around 32 cents/kWh. Nor is it currently to be expected that costs in this area will fall. The electricity consumption for heating is 7,200 kWh per year and would cost around 2,304 euros.

Heating with pellets

Some households have a pellet heating system. In view of the current shortage of raw materials and the resulting sharp rise in wood prices, this type of heating is currently very expensive. Due to the climate crisis and the associated accumulation of periods of drought, the price of wood will continue to rise in the coming years. Pellet heating therefore only makes sense as an additional heating method.

The model household uses around 4,000 kg/year of pellets. Currently, the cost of one ton is around 237 euros - but only for a purchase quantity of six tons. For the example, this would mean that you have to reckon with costs of 948 euros for the current heating season.

Compare heating costs

Heating with oil or gas: which is cheaper? This question cannot be answered specifically. Both gas and heating oil are subject to price fluctuations. Even if heating with gas is currently cheaper than heating with oil, changing the heating method should be carefully considered. Because the Verivox analysis of the past ten years shows that heating oil can sometimes be significantly cheaper, but also significantly more expensive than gas. The price of heating oil is subject to greater fluctuations than gas.

Is it worth switching?

Before you consider switching to a cheaper heating variant, you should consider that both the new heater and the installation and conversion are associated with high costs. In some cases, the old heating method is also used for the oven or stove or for hot water preparation, which makes conversion even more difficult.

However, the end of oil heating was heralded with the climate package. Together with the government subsidy programs, a switch from oil to gas can therefore be worthwhile.

A combination of several heating systems is best. For example, a gas heater together with a solar thermal system.

Calculate consumption yourself

You can calculate your annual heating costs yourself using a simple formula. According to Verivox, this is:

Final energy consumption (in kilowatt hours per square meter and year) x living space (in square meters) x price of raw materials (in euros per kilowatt hour) = annual heating costs (in euros)