Is Biofuel More Expensive Than Regular Heating Oil?
Bioheat® – a clean-burning alternative to traditional home heating oil made by blending oil with biodiesel – has gotten a lot of good press in recent years, and deservedly so. After all, Bioheat – which can be used in your existing oil-fired furnace or boiler without modification – burns cleaner, which helps shrink your home’s carbon footprint.
But is Bioheat more expensive regular #2 heating oil?
In one (very limited) sense, the answer is yes – when you consider the per gallon cost of one fuel and the other, Bioheat costs a few fractions of a penny more per gallon than traditional heating oil. But there are several other factors to consider that tip the scale decidedly in favor of Bioheat when it comes to calculating costs.
For one thing, because Bioheat burns cleaner, it causes less wear and tear on your equipment – which means your furnace, boiler, and burner will require less maintenance and won’t have to be replaced as frequently. That means less money spent by you and less waste in the landfill.
For another, New York State provides a Clean Fuel Credit for your state income taxes of one cent per percentage point of biodiesel contained in the Bioheat blend you receive. For example, if you used 750 gallons of Ehrhart Energy’s B10 Bioheat in 2019 (which is 10 percent biodiesel), you qualify for a $75 clean fuel tax credit (750 X $.10).
As you can see, Biofuel isn’t just a great investment for the planet – it’s a great investment for you.
How do I apply for a Clean Fuel Credit?
Instructions for applying for your Clean Fuel Credit, including a IT-241 Claim for Clean Heating Fuel Credit form – can be found on the NY State Department of Taxation and Finance website.
If you are were an Ehrhart Energy Bioheat customer in 2019, you will receive an annual usage statement listing all deliveries by date and gallons delivered; simply use these figures to apply for the Clean Fuel Credit. If you do not receive this statement, contact us so we can make sure you have what you need.
If you’re not an Ehrhart Energy Bioheat customer, why not become one and experience the Ehrhart difference for yourself? We have the most reliable delivery of high quality B10 biofuel in our Finger Lakes service area.
Expecting money back on your taxes this year? Why not reinvest it in your home comfort? Ehrhart Energy can help you with a FREE, no-obligation estimate on top quality, high-efficiency heating system that’s just right for your home and budget. Contact us today to learn more.