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Oil-to-Gas Heating Conversion in Maryland: Cost and Process for 2026

Oil-to-gas conversion in Maryland costs $7,000 to $25,000 depending on gas line distance, equipment, and tank removal. See the full process, timeline, and payback.

Oil-to-Gas Heating Conversion in Maryland: Cost and Process for 2026

Converting a Maryland home from oil heat to natural gas costs about $7,000 to $15,000 in 2026 when a gas main already runs down your street, and $12,000 to $25,000 or more when the utility has to extend service to reach you. The spread comes from three separate bills: the utility's service line and meter, the new furnace or boiler, and the removal of the old oil tank. Each has its own timeline and its own set of decisions.

Roughly one in ten Maryland households still heats with oil, concentrated in older neighborhoods of Baltimore City and Baltimore County, the Annapolis area, Frederick, Hagerstown, and rural parts of Harford, Carroll, and the Eastern Shore. Many of those homes sit within a block of a BGE, Washington Gas, or Columbia Gas main, which makes conversion a realistic option. Others are far enough from a main that propane or a heat pump is the better path.

This guide walks through the full cost, the step-by-step process from the first utility call to the final inspection, and the situations where conversion does not pay. It also covers the oil tank removal rules that Maryland enforces more carefully than most states.

What a Maryland Conversion Costs, Line by Line

The gas utility connection is the first bill and the most variable. BGE and Washington Gas typically install the service line from the main to your meter at no charge or a modest fee if the main runs along your property frontage and the distance is under about 100 feet. Longer runs, road crossings, and homes on the far side of a street with no main can cost $2,000 to $10,000, and in some cases the utility declines to extend service at all.

The heating equipment is the second bill, and a new high-efficiency gas furnace installed in Maryland runs $4,500 to $8,500, and a gas boiler for homes with radiators or baseboard runs $6,000 to $12,000. If you also convert the water heater to gas, add $1,500 to $3,000 for a tank unit or $3,000 to $5,500 for a tankless one. Many homeowners do both at once because the plumber and gas fitter are already on site.

Interior gas piping from the meter to the appliances is the third cost. Black iron or CSST piping runs $500 to $2,500 depending on the distance from the meter location to the furnace room and how many appliances you connect. If you add a gas range or dryer while the walls are open, budget another $300 to $800 per appliance for the drop.

Chimney work is the cost most people miss. Oil burners vent through a masonry chimney that has spent decades collecting sulfur deposits, and a condensing gas furnace vents through PVC out the side wall instead. If you install a boiler or furnace that still uses the chimney, Maryland code requires a properly sized liner, and a stainless steel liner costs $1,500 to $4,000 installed.

Oil Tank Removal in Maryland

Above-ground basement tanks are the easy case. A contractor drains the remaining oil, cuts the tank into pieces, and hauls it out for $500 to $1,200. Some oil dealers will credit you for the fuel left in the tank, so do not fill up in the months before conversion.

Underground tanks are the expensive case, and Maryland has a lot of them. The Maryland Department of the Environment regulates heating oil tanks, and a buried tank should be removed or properly abandoned in place by a licensed contractor. Removal runs $1,500 to $3,500 if the soil is clean, while a leaking tank can push remediation to $10,000 to $50,000 or more, which is why a soil test before removal is worth the few hundred dollars it costs.

Sellers should know that most Maryland buyers and their lenders will ask about a buried oil tank during a transaction. An abandoned tank with no documentation can hold up a sale, so keep the removal paperwork.

The Conversion Process, Step by Step

The first call goes to the gas utility, not to a contractor. BGE, Washington Gas, and Columbia Gas of Maryland each have a new service or conversion department that will confirm whether a main runs near your home and provide a preliminary cost for the service line. This step can take two to six weeks, and during high-demand periods in the fall, longer.

Once the utility confirms availability, you get quotes from HVAC contractors for the equipment and interior piping. Maryland requires a licensed HVACR contractor for the heating equipment and a licensed plumber or gas fitter for the gas piping, and many companies hold both. Ask for the license numbers and confirm them with the Maryland Department of Labor before signing.

The utility then schedules the service line installation, which involves trenching from the main to the meter location on the side of your house. This is usually a one-day job, but the scheduling backlog can push it several weeks out. In BGE's territory around Baltimore, fall conversions booked in August often see the service line installed in October or November.

Interior work comes next. The contractor removes the oil burner and tank, runs the gas piping, installs the new furnace or boiler, and either lines the chimney or installs sidewall venting. This takes one to three days for a straightforward furnace swap and up to a week if a boiler, water heater, and chimney liner are all involved.

The final step is the county inspection and the utility meter set. The county permits the gas piping and the equipment installation, an inspector approves the work, and the utility then installs the meter and turns on the gas. A technician fires the system, checks combustion, and you are heating with gas.

Does Converting Pay Off in Maryland?

Fuel savings are real but depend on the year. Heating oil in Maryland has ranged widely in recent years, while natural gas prices from BGE and Washington Gas have stayed comparatively stable. A typical Maryland home burning 700 gallons of oil a year has often seen savings of $800 to $1,500 annually after converting to a high-efficiency gas furnace, though the gap narrows when oil is cheap.

Equipment efficiency drives part of the savings. Many Maryland oil furnaces and boilers date from the 1980s and 1990s and run at 70% to 80% efficiency, while a new condensing gas furnace runs at 95% or better. Some of the savings you see after converting would have come from any new equipment, gas or otherwise.

The payback period is usually 7 to 12 years when a main is on the street and the conversion costs under $12,000. That stretches past 15 years if you need a long service line or an underground tank remediation, and at that point a cold-climate heat pump, which qualifies for EmPOWER Maryland rebates and federal tax credits, is often the better financial choice.

Maryland's climate policy also matters for a long-term decision. The state has set targets to reduce fossil fuel use in buildings, and some counties, including Montgomery, have adopted rules that phase in all-electric requirements for new construction. Existing homes are not affected today, but a homeowner planning to stay 20 years should weigh whether a gas system installed now fits where the state is heading.

When Conversion Is the Wrong Move

Homes more than a few hundred feet from a gas main should look at alternatives first. The utility's line extension charge can eat the entire fuel savings for a decade, and propane conversion, which uses nearly identical equipment, costs less up front and avoids the wait. Propane runs more per BTU than natural gas, so it is a compromise on operating cost.

Heat pumps have become the primary competitor to gas conversion in Maryland. A cold-climate ducted heat pump costs $12,000 to $20,000 installed, but EmPOWER rebates through BGE, Pepco, Delmarva, and Potomac Edison have offered $1,000 to $3,000 or more, and the federal credit covers 30% up to $2,000. In homes that already have central air ductwork, a heat pump replaces both the oil furnace and the AC in one system.

Oil systems under 10 years old are worth keeping until they age out. A modern oil furnace runs at 85% or better efficiency, and scrapping it early to convert rarely pays. Plan the conversion for when the current system needs replacement anyway.

Any licensed Maryland heating contractor can run a side-by-side estimate comparing gas conversion, heat pump, and a new oil system for your house. Get all three numbers before deciding, and for other home service cost breakdowns across the state, read more on our blog.

Frequently Asked Questions

How long does an oil-to-gas conversion take in Maryland?

From the first utility call to the meter set, plan for two to four months. The utility's service line scheduling is the longest step, and fall demand can stretch it further.

Will BGE or Washington Gas run the gas line for free?

Often yes, if the main is on your street and the run is short. Longer runs or road crossings carry charges that can reach several thousand dollars, and the utility provides a quote before any work begins.

Do I have to remove an old underground oil tank in Maryland?

The Maryland Department of the Environment requires that out-of-service tanks be removed or properly closed in place by a licensed contractor. Buyers and lenders frequently require documentation, so removal is the cleaner option.

Can I keep my radiators when converting from oil to gas?

Yes. A gas boiler connects to your existing hot water or steam radiators, and only the boiler, burner, and venting change. Steam systems need a boiler sized carefully to the radiator load.

Are there Maryland rebates for converting to gas?

Gas utilities sometimes offer rebates on high-efficiency gas furnaces and boilers through the EmPOWER Maryland program, usually $200 to $700 per unit. Heat pump incentives are considerably larger, which is worth factoring into the decision.