I’m a new home owner, I bought an older duplex with a forced hot air furnace that uses No2 heating oil. I had the electrical split, so I have 2 panels and 2 services. I’m currently living in one side of the duplex, and I pay for oil, water /sewer for tenants, they pay electric. The furnace’s electrical is tied into the electrical panel of the apartment I’m currently living in which is no problem for now. The issue is I’d like to move out in the future but need to get this fixed so the tenant who moves into this side of the duplex doesn’t have to pay for the furnace’s electric and just the electric they use. Looking back I should have put in a 3rd panel/service in so I could have the furnaces tied into that, or does a furnace like this not use enough electricity to make it worth adding another service? Does anyone have a potential solution or advice?
A gas powered forced air unit will consume something like 100kWh per month, at $0.20 that is $20 bucks a month duing heating season. Is the 2nd panel maxed out with breakers?
Practically, nobody is ever going to ask where the power for the furnce is comming from. It's like who pays for the lights in the basement. It's never 100% fair between and upper and a lower unit, for example the upper has to heat less.
This is a very common issue in older duplexes, so you’re not alone.
A forced hot air oil furnace itself doesn’t use much electricity. It’s mainly the blower and controls. From a pure usage standpoint, it’s usually not worth adding an entirely new service just for the furnace load.
The real issue isn’t power consumption, it’s fair and defensible utility allocation once both units are tenant occupied.
In practice, you usually have three realistic options:
Landlord-paid furnace electric
The simplest and most common solution is to keep the furnace tied to one panel and make heat an owner-paid utility. You already pay for the oil anyway, so covering the blower electric is typically a small incremental cost and avoids disputes or compliance issues.
House meter / third panel
Cleanest from a billing perspective, but often the most expensive. New service, permitting, utility coordination, and panel work can get pricey fast. Usually only makes sense if you’re already doing a major electrical upgrade.
Written utility disclosure and rent adjustment
If code allows in your area, some owners disclose that one unit powers a common system and adjust rent accordingly. This works best when documented clearly and priced conservatively so the tenant never feels like they’re subsidizing the other unit.
What I would avoid is trying to split or submeter the furnace circuit between units. That tends to create more problems than it solves and can run afoul of local code or utility rules.
Bottom line: unless an electrician tells you there’s a compelling reason otherwise, owner-paid furnace electric is usually the most cost-effective and least risky solution, especially once you move out.
Before you make a final call, I’d confirm with a local electrician and your municipality, but this setup is very common in older duplex stock.