8-E-i

APPENDIX 8-E. MAINTENANCE AND REPAIR COST DETERMINATION FOR 

BOILERS

TABLE OF CONTENTS

8-E.1 INTRODUCTION ................................................................................................ 8-E-1

8-E.2 MAINTENANCE COST FOR BOILERS............................................................ 8-E-1

8-E.2.2 Low Sulfur Fuel Oil.............................................................................................. 8-E-2

8-E.2.2.1 Sulfur Production.......................................................................... 8-E-2

8-E.2.2.2 Currently Regulatory Requirements............................................. 8-E-3

8-E.2.2.3 Reduction of Sulfur Effects on Boiler Maintenance..................... 8-E-4

8-E.2.2.4 Market Share of Low Sulfur Boilers (<300,000 kBtu/h).............. 8-E-6

8-E.2.2.5 Low Sulfur Energy Prices............................................................. 8-E-7

8-E.3 REPAIR COST FOR BOILERS........................................................................... 8-E-8

8-E.4 REGIONAL MATERIAL AND LABOR COSTS............................................... 8-E-8

LIST OF TABLES

Table 8-E.1.1 Example Cost Table................................................................................... 8-E-1

Table 8-E.2.1 Maintenance Fractions based on 2008 American Home Comfort 

Survey ........................................................................................................ 8-E-2

Table 8-E.2.2 States and Year of NOX Regulation Implementation, and Regional Oil 

Boiler Market Shares,................................................................................. 8-E-7

Table 8-E.3.1 Warranty Period Assumptions................................................................... 8-E-8

Table 8-E.3.2 Service Contract Assumptions................................................................... 8-E-8

Table 8-E.4.1 RS Means 2013 National Average Labor Costs by Crew.......................... 8-E-8

Table 8-E.4.2 RS Means Labor Costs Markups by Trade ................................................ 8-E-9

LIST OF FIGURES

Figure 8-E.2.1 States with Low Sulfur Regulations (Source: EIA)................................... 8-E-4

Figure 8-E.2.2 Boiler Deposits by Fuel Oil Type .............................................................. 8-E-5
8-E-1

APPENDIX 8-E. INSTALLATION, MAINTENANCE, REPAIR COST 

DETERMINATION FOR BOILERS

8-E.1 INTRODUCTION

This appendix provides further details about the derivation of maintenance and repair 

costs for boilers.

The Department of Energy (DOE) estimated maintenance and repair costs for boilers 

based on RS Means, a well-known and respected construction cost estimation method, as well as

manufacturer literature and information from expert consultants. Table 8-E.1.1 offers an example 

of the cost calculation method. All labor costs are derived using the latest residential 2012 RS 

Means labor costs by crew type.1 Maintenance and repair cost tables include a trip charge, which 

is often charged by contractors and calculated to be equal to one half hour of labor per crew 

member. Labor hours (or person-hours) are based on RS Means data, expert data, or engineering 

judgment. Bare costs are all the costs without any markups. Material costs are based on RS 

Means data, expert data, or internet sources. The total includes overhead and profit (O&P), 

which is calculated using labor and material markups from RS Means. Values reported in this 

appendix are based on national average labor costs. The labor costs shown in the tables in this 

appendix are the national average values. In its analysis, DOE used regional labor costs to more 

accurately estimate installation costs by region. Section 8-D.5 describes the derivation of 

regional labor costs. DOE then applied the appropriate regional labor cost to each RECS sample 

household. The total costs include O&P. (Note that the unit “L.F.” in the tables means “linear 

foot.”)

Table 8-E.1.1 Example Cost Table

Description Crew Labor

Hours Unit

Bare Costs (2012$)

Quantity

Total 

incl. 

Material O&P Labor Total

Trip Charge CREW1 0.5 - 0.00 23.00 23.00 1 35.00

Description of Installation Item CREW1 0.5 Ea. 15.00 23.00 48.00 1 51.50

Total 1.0 15.00 46.00 71.00 86.50

8-E.2 MAINTENANCE COST FOR BOILERS

The maintenance cost is the routine annual cost to the consumer of maintaining 

equipment operation. It is the cost associated with general maintenance. DOE assumes that this 

maintenance cost is the same at all efficiency levels.

The frequency with which the maintenance occurs was derived from a 2008 consumer 

survey

2 on the frequency with which owners of different types of boilers perform maintenance. 
8-E-2

Table 8-E.2.1 Maintenance Fractions based on 2008 American Home Comfort Survey

Frequency of Maintenance Assumed 

Frequency 

for Analysis

Fraction of Households

Oil Boilers Other Boilers

Last maintenance within a year Annual 71% 53%

Last maintenance within two years Biannual 17% 17%

Last maintenance over 2 years Every 5 years 7% 15%

Never Never 5% 14%

DOE estimated costs for annual maintenance using data from a consumer survey on the 

frequency with which owners of different types of boilers perform maintenance. For condensing 

oil boilers, the high quantity of sulfur in the fuel results in frequent cleaning of the secondary 

heat exchanger, and DOE accounted for this cost.

DOE investigated the effects of recent low sulfur fuel oil requirements on oil boiler 

maintenance. See section 8.E.2.2. Based on this information, DOE adjusted maintenance costs 

to take into account these changes. Around 65% of residential boiler shipments are to states

which currently have or will have low sulfur restrictions. Some studies suggest that low sulfur 

fuel oil can reduce maintenance costs. For this analysis, DOE assumes that in:

1) Non-regulated areas: Purchase high sulfur oil fuel with the current maintenance 

frequency for non-condensing and condensing equipment. For this analysis, the 

frequency of maintenance remains the same, but condensing maintenance costs is

assumed to be 10% higher.

2) Regulated areas: Purchase low sulfur oil with decreased maintenance costs for all 

equipment. For this analysis, the frequency of maintenance is doubled and condensing 

and non-condensing costs are equal.

3) Fuel prices are assumed to be already adjusted in AEO 2013 projections.

8-E.2.2 Low Sulfur Fuel Oil

8-E.2.2.1 Sulfur Production

Ordinary oil fuel used for heating in the United States typically contains sulfur levels on 

the order of 2,500 parts per million.a Approximately 99% of the burned sulfur turns into sulfur 

 a Low Sulfur Heating Oil in the Northeast States: An Overview of Benefits, Costs, and Implementation Issues. 

NESCAUM. December 2005.
8-E-3

dioxide (SO2), which, when emitted to the atmosphere, can irritate lungs, contribute to 

pulmonary disease, and create haze.b

In addition to the production of SO2, a small amount of the sulfur present in fuel oil is 

also converted during combustion into sulfur trioxide (SO3). SO3 combines with the water 

present in combustion gas and creates sulfuric acid, which condenses within heat exchangers and 

venting systems when heated to high temperatures. This sticky acid can react with the iron or 

steel of the heat exchanger walls, flue pipe, and chimney interior, to create scale which both 

reduces the boiler’s efficiency, and damages the equipment.c

Low sulfur fuel oil has a smaller amount of sulfur present, typically on the order of 15 to 

500 ppm. Not only can the use of low sulfur fuel oil reduce production of sulfur dioxide and 

trioxide, but the same process that removes sulfur from fuel has the added benefit of also 

removing nitrogen.d

8-E.2.2.2 Currently Regulatory Requirements

New York was the first state to mandate the EPA rules that established the use of Ultra 

Low Sulfur Diesel (ULSD) (less than 15 ppm sulfur) for transportation in certain parts of the 

countrye be applied to heating oil. The following chart shows the individual states that have also 

mandated ULSD levels for heating oil.

f

 b http://www.ppmcsa.org/pdf/AdvantageofUltra-LowSulfurHeatingFuels.pdf c http://www.ppmcsa.org/pdf/AdvantageofUltra-LowSulfurHeatingFuels.pdf

d http://www.ct.gov/deep/lib/deep/air/siprac/2013/fuel_sulfur_factsheet.pdf

e http://www.epa.gov/otaq/fuels/dieselfuels/

f http://www.eia.gov/todayinenergy/detail.cfm?id=11211
8-E-4

Figure 8-E.2.1 States with Low Sulfur Regulations

Several sources state that the Northeast restrictions that will take effect in 2018 will mark 

a drastic decline of the high sulfur fuel market in the U.S.

g,h,i

At the federal level, high sulfur diesel exists despite being banned for on-road use in 2010 

and off-road use (such as barges and locomotives) in 2012.j

However, lowering the sulfur 

content of highway diesel has had some impact on heating oil sulfur content as well. Because 

refineries are manufacturing highway diesel and heating fuel through the same process, there is 

often a mix of the two fuels, leading to lower sulfur levels in heating fuel. Therefore heating fuel 

refined directly after highway diesel has decreased the overall sulfur content.k

8-E.2.2.3 Reduction of Sulfur Effects on Boiler Maintenance

A variety of sources cite the fact that lower-sulfur fuel can reduce operating and 

maintenance costs and improve boiler efficiency.l,m,n,o Tests by Brookhaven National Laboratory 

and the New York State Energy Research and Development Authority (NYSERDA) show that 

500 ppm low sulfur fuel leads to very clean heat exchangers, while 15 ppm fuel leads to 

completely clean exchangers.p,q The most consistent decrease in the rate of sulfur particles 

collecting on solid surfaces was two-and-a-half times, but some test results have shown even 

better rates.r NYSERDA and Brookhaven studied 20 homes in a larger 1,000 home study to 

assess fouling deposits. The following graph shows some of their findings: 

 g http://blogs.platts.com/2013/03/27/heating-oil/ h http://www.platts.com/latest-news/oil/houston/feature-ultra-low-sulfur-heating-oil-production-21465954 i

http://www.eia.gov/todayinenergy/detail.cfm?id=5890

j

http://blogs.platts.com/2013/03/27/heating-oil/ k http://www.cecarf.org/publications/CECA%20Low%20Sulfur%20White%20Paper%209-12-03.pdf l

http://nyccleanheat.org/content/ultra-low-sulfur-2-oil m http://www.ppmcsa.org/pdf/AdvantageofUltra-LowSulfurHeatingFuels.pdf n http://www.nyoha.org/aboutOilheat.php

o http://www.oeconline.org/resources/publications/factsheetarchive/biodieselforboilers

p http://www.ppmcsa.org/pdf/AdvantageofUltra-LowSulfurHeatingFuels.pdf

q http://www.ecvt.net/assets/files/Brookhaven-Low-Sulfur.pdf r http://www.cecarf.org/publications/CECA%20Low%20Sulfur%20White%20Paper%209-12-03.pdf
8-E-5

Figure 8-E.2.2 Boiler Deposits by Fuel Oil Type

Normal sulfur oil produced 0.28 pounds of deposits per million BTU of fuel consumed. 

Deposits in the low sulfur group, excluding “heating only boilers” and “high smoke boilers,” 

produced 0.14 pounds per million BTU of fuel. This equates to a 2:1 reduction in deposits from 

the use of low sulfur fuel oil, results which correspond with research conducted by Brookhaven 

National Laboratory and CAMET Energy Technology Centre in Canada.s A 1995 report entitled 

“Oilheat Advantages Project – Engineering Analysis and Documentation Report” also states that 

decreased fouling of heat exchangers from low sulfur fuel can either extend the period between 

cleanings from 21 months (the average interval between cleanings) to 58 months, or cleanings at 

the existing frequency will take less time than the current average of 1.1 hours.t

Using lower-sulfur heating oil with boiler systems can not only reduce the emission of 

particulate matter, but also allow the use of secondary condensing heat exchangers on oil-fired 

boilers.u

The are some downsides to low sulfur fuel: the German organization Institut Fur 

wirtschafliche Oelheizung performed research in 2003 by testing 50 ppm fuel with condensing 

and wall hung units with blue flame burners (which burn at a higher temperature than standard 

current yellow flame oil-fired burners), and found that the combustion was impacted by low 

lubricity and metal dusting. However, these issues may also be related to the blue flame burners, 

the metal dusting was not observed in the field.v In addition, more information is needed to 

determine the application of higher temperature blue flame burners in the U.S. market.

 

s http://www.ecvt.net/assets/files/Brookhaven-Low-Sulfur.pdf t

http://www.cecarf.org/publications/CECA%20Low%20Sulfur%20White%20Paper%209-12-03.pdf u http://www.edf.org/sites/default/files/10072_EDF_BottomBarrel_Ch4.pdf

v http://www.ppmcsa.org/pdf/AdvantageofUltra-LowSulfurHeatingFuels.pdf
8-E-6

Boilers that burn either residual or heavy-distillate fuel oils require more maintenance 

because of soot-production. In order to compensate for this production, daily soot blowing is 

required during the heating season to remove excess soot from heat exchanger surfaces, in 

addition to regular boiler tuning to ensure proper combustion air volume.w

MJ Bradley and Associates recommend the following annual maintenance service for 

boilers that burn No. 2, distillate, heating oil:

• Burner tip and heat exchanger cleaning

• Ash and soot removal

• Flue gas analysis/carbon monoxide test

• Air intake filter replacement

• Oil filter replacement

For residential boilers that burn natural gas normally, less maintenance is required but 

should still include:

• Air intake filter replacement

• Flue gas analysis/carbon monoxide test.

8-E.2.2.4 Market Share of Low Sulfur Boilers (<300,000 kBtu/h)

Based on the list of States above with low sulfur restrictions and the number of 

residential boiler shipments from 1987-2003 to those States, DOE approximates that 23% of 

residential boilers shipments are currently to areas with low sulfur restrictions and estimates that 

this fraction could rise to 65% by 2020.

 w http://www.edf.org/sites/default/files/10072_EDF_BottomBarrel_Ch4.pdf
8-E-7

Table 8-E.2.2 States and Year of NOX Regulation Implementation, and Regional Oil 

Boiler Market Shares

x,y

State Year of Implementation Residential Oil Boiler

(Cast Iron) Shipment 

Fraction (1987-2003)

New York 2012 (ULSD, <15ppm) 24%

Connecticut 2011 (<50ppm), 2014 (ULSD, 

<15ppm)

11%

New Jersey 2014 (<500ppm), 2016 (ULSD, 

<15ppm)

8%

Maine 2016 (<50ppm), 2018 (ULSD, 

<15ppm)

5%

Massachusetts 2014 (<500ppm), 2018 (ULSD, 

<15ppm)

17%

Vermont 2014 (<50 ppm), 2018 (ULSD, 

<15ppm)

1%

Total by 2020 65%

8-E.2.2.5 Low Sulfur Energy Prices

Heating oil prices are influenced by factors such as demand per season, the cost of crude 

oil, competition among heating oil dealers, and regional costs such as distribution. Marketing and 

distribution usually accounts for 46 percent of the retail price to consumers.z Low sulfur 

regulations could also potentially affect the price of fuel oil. DOE found a 2003 report that cites 

the price differential between regular #2 heating oil and low sulfur oil as one to two cents per 

gallon.aa Research funded by the Connecticut government states that the stock of ultra-low sulfur 

fuel in the US has increased significantly over the last decade, which would also affect pricing.bb

Data already shows that New York State’s requirement of ultra-low sulfur fuel oil will result in 

slightly higher heating oil futures prices when compared to historical prices. For example, in 

February and March of 2013, the difference between the April heating oil contract and the May 

heating oil contract averaged nearly $0.08 per gallon.”cc

DOE believes that low sulfur oil pricing for regulated regions is already taken into 

account in EIA’s AEO 2013 projections.

 x http://www.eia.gov/todayinenergy/detail.cfm?id=5890

y http://www.eia.gov/todayinenergy/detail.cfm?id=11211

z http://www.cecarf.org/publications/CECA%20Low%20Sulfur%20White%20Paper%209-12-03.pdf aa http://www.cecarf.org/publications/CECA%20Low%20Sulfur%20White%20Paper%209-12-03.pdf

bb http://www.ct.gov/deep/lib/deep/air/siprac/2013/fuel_sulfur_factsheet.pdf cc http://www.eia.gov/todayinenergy/detail.cfm?id=11211
8-E-8

8-E.3 REPAIR COST FOR BOILERS

The repair cost is the cost to the consumer for replacing or repairing components in the 

boiler that have failed. DOE estimated repair costs at each considered efficiency level using a 

variety of sources, including 2012 RS Means Facility Repair and Maintenance Data,

3

manufacturer literature, and information from expert consultants. DOE accounts for regional 

differences in labor costs. 

Table 8-E.3.1 Warranty Period Assumptions

Warranty Period Fraction of 

Households

One year Labor and Parts 100%

5 years parts only 90%

10 year parts only 10%

Table 8-E.3.2 Service Contract Assumptions

Service Contract Types Fraction of Households

Oil Boilers Other Boilers

Total Package (Labor and Parts) 27% 15%

Annual Cleaning 11% 6%

None 62% 79%

8-E.4 REGIONAL MATERIAL AND LABOR COSTS

DOE used regional material and labor costs to more accurately estimate installation, 

maintenance, and repair costs by region. RS Means provides average national labor costs for 

different trade groups as shown in Table 8-E.4.1. Bare costs are given in RS Means, while labor 

costs including overhead and profit (O&P) are the bare costs multiplied by the RS Means 

markups by trade shown in Table 8-E.4.2.

Table 8-E.4.1 RS Means 2013 National Average Labor Costs by Crew

Crew Type Crew Description Laborers 

per Crew

Cost per Labor-Hour

Bare Costs Incl. O&P*

Q1 1 Plumber, 1 Plumber Apprentice 2 $50.23 $78.15

* Q&P includes markups in Table 8-A.8.2
8-E-9

Table 8-E.4.2 RS Means Labor Costs Markups by Trade

Trade Workers 

Comp.

Aver 

Fixed 

Overhead

Overhead Profit Total

Plumber (Repair/Remodel) 6.7% 17.9% 16.0% 15.0% 55.6%

RS Means also provides material and labor cost factors for 295 cities and towns in the 

U.S. To derive average labor cost values by state, DOE weighted the price factors by city or 

town population size using 2012 census data. DOE used the material and labor cost factors for 

cost associated with fire suppression, plumbing, and HVAC. See appendix 8-D for more details.
8-E-10

REFERENCES

1. RS Means Company Inc., RS Means Residential Cost Data. 31st Annual Edition ed. 

2012: Kingston, MA

2. Decision Analysts, 2008 American Home Comfort Study: Online Database Tool, 2009. 

Arlington, Texas. <http://www.decisionanalyst.com/Syndicated/HomeComfort.dai>

3. RS Means Company Inc., RS Means Facilities Maintenance & Repair Cost Data. 2012. 

Kingston, MA.