Heating Cost Comparison

How It Works

The cost of heating depends on three factors: the price of fuel, the efficiency of your equipment, and how much heat your home needs. Natural gas is typically the cheapest fuel in areas where it is available. Heat pumps can be even cheaper because they move heat rather than create it, achieving effective efficiencies of 250 to 350 percent. Electric resistance heating is the most expensive because it converts electricity to heat at a 1-to-1 ratio. Propane and oil prices fluctuate significantly by region and season. When comparing systems, look at total cost of ownership including equipment cost, installation, and maintenance — not just annual fuel cost.