Oil heat is expensive, volatile, and increasingly rare in the GTA — but thousands of older Toronto homes still have oil furnaces, boilers, and tanks. If yours is one of them, conversion to natural gas is almost always worth it. Natural gas is piped directly to your home, costs significantly less per BTU than oil, and doesn't require a storage tank on your property.
Here's a realistic breakdown of what's involved.
What the Conversion Involves
An oil-to-gas conversion isn't a single job — it's a coordinated series of steps:
- Gas service connection: Enbridge Gas must run a gas line to your home (if not already present) and install a meter. There's usually a connection fee. This takes 2–6 weeks from application to installation.
- Oil tank decommissioning: Your existing oil storage tank (typically in the basement or buried outside) must be properly decommissioned. Above-ground tanks: cleaned, inspected, and removed or safely abandoned. Underground tanks: specialized removal, soil testing, and environmental remediation if needed.
- New furnace installation: Your oil furnace comes out and a new high-efficiency gas furnace goes in. This includes new gas line rough-in to the equipment, new venting, and all permits.
- Inspection and sign-off: All gas work must be inspected and approved by TSSA-registered inspectors. Licensed gas fitters pull the permits and arrange this.
What Does It Cost?
Total project cost in Toronto typically runs $5,000–$12,000, depending on several factors:
- New high-efficiency gas furnace (96% AFUE): $3,000–$6,000 installed
- Enbridge connection fee: $0–$2,000 depending on distance and whether gas is already at the street
- Above-ground oil tank removal: $500–$1,500
- Underground tank removal: $2,000–$8,000+ (soil testing, environmental compliance)
How Long Does It Take?
Plan for the project to span 4–8 weeks from start to finish, mostly due to Enbridge's scheduling for the gas service connection. The actual installation work (furnace, gas line, tank removal) typically takes 1–2 days once gas is live at the property. We coordinate all of this for you.
How Much Will I Save?
Natural gas is consistently cheaper than heating oil on a BTU-equivalent basis in Ontario. Most homeowners who convert save $800–$2,000 per year on heating costs, depending on their home size, oil consumption, and current gas rates. At $1,200/year in savings, a $6,000 conversion project pays back in 5 years — and the new furnace runs for 20 years.
Beyond cost, natural gas is more convenient: no monitoring fuel levels, no delivery trucks, no risk of running out mid-winter.
Underground Tank: The Bigger Consideration
If you have a buried oil tank, this is the part that requires the most planning. Ontario environmental law requires underground oil tanks to be properly decommissioned. If a buried tank has leaked, soil remediation can cost $5,000–$50,000+. This is rare, but it's why we strongly recommend addressing buried tanks proactively before they become a larger problem.
We always recommend a tank integrity assessment before starting a conversion project on homes with known or suspected underground tanks.
Do I Need Permits?
Yes. A building permit is required for the new furnace installation, and TSSA-registered gas fitters must perform and sign off on all gas work. We handle all permits as part of the project — you don't need to chase anything down. Everything is done properly so your home insurance remains valid.
To get a quote for an oil-to-gas conversion in Toronto or the GTA, call Alderwood Mechanical at 437-229-8618. We'll assess your current setup, walk you through the full process, and give you an honest estimate — including help navigating any available rebates.
Alderwood Mechanical serves Toronto, North York, Scarborough, Etobicoke, Mississauga, Vaughan, Markham, Oakville, and surrounding GTA. G1 licensed gas fitters. No contracts. Upfront pricing.