Which type of heating is cheapest to run? In the interests of spending less of your hard-earned money on fuel and to spare the planet’s resources, it’s an important question to answer.
Heating accounts for about 29 per cent of your utility bill, according to Energy Saver, the US Department of Energy’s (DOE) consumer resource on saving energy and using renewable energy technologies at home, so choosing the cheapest option can make a big difference to you home expenses.
To help you make savings in the future, we’ve put together a guide to which type of heating is cheapest to run and asked the experts to share their knowhow.
There’s a wide variation in what you can expect to pay for home heating, depending on the type of fuel you use. However, if all options are open where you live, there is a clear winner when it comes to what you might expect to pay.
Here, we look at which type of heating is cheapest to run by fuel type, along with the ways you may be able to cut your spend with your existing system.
Natural gas is likely to prove the cheapest way to heat a home if you have this heating option available to you where you live.
Although prices have risen, natural gas is the least costly form of space heating. This is followed by electricity, propane, and heating oil, from the next cheapest to the most expensive. It also pays to consider eco-friendly home improvements that make home eco-heating more efficient, too.
Prices across all fuel types have increased but the National Energy Assistance Directors’ Association (NEADA), which represents the state directors of the Low Income Home Energy Assistance Program (LIHEAP) has projected winter heating costs of $952 for natural gas, $1,328 for electricity, $1,828 for propane, and $2,115 for heating oil in winter 2022-23.
This shows natural gas is the cheapest type of heating to run and heating oil is the most expensive way to heat a home.
(Image credit: Alamy)
A heat pump could provide savings on electric bills. Heat pumps are an excellent eco-heating choice, and whether air-source or geothermal, they are extremely energy efficient and saving when compared to heating with electricity. An air-source heat pump can ‘reduce your electricity use for heating by approximately 50 per cent compared to electric resistance heating such as furnaces and baseboard heaters, according to Energy Saver.
A geothermal or ground or water-source source heat pump, meanwhile, can ‘reduce energy use by 30 per cent to 60 per cent’, the Energy Saver experts say.
Bear in mind, however, that fitting a heat pump is a major investment, so this must be weighed against the potential savings
There are steps you can take to reduce heating bills whatever the type of heating system in your home.
Take a look, first, at the thermostat. ‘Homeowners can cut their heating bill by using the correct thermostat settings for cold weather: 68ºF during the day, 55 to 60ºF when away from home, and 65ºF for sleeping,’ says Shannon Bedrich, CFO of NaturalGasPlans and ElectricityPlans. ‘If your family feels like it’s too cold, drop the temperature by one degree every other day. That lets everyone get used to the lower temperature.’
And consider a smart thermostat. ‘Converting to smart thermostats is another relatively inexpensive way to cut down on heating (and cooling) expenses, and it pays off in the long run,’ says Greg Dunavant, VP of customer operations for Gas South. ‘There are lots of brands out on the market, but the Nest Learning thermostat is one of the best. It learns the temperatures you like, then programs itself based on your preferences and schedule to save you up to 12 per cent on your heating expenses.’
You should also clean and replace furnace filters on schedule, clean warm-air registers, baseboard heaters, and radiators and make sure they’re not blocked by furniture, flooring, or drapes, the experts from Energy Saver say.
Be sure, too, to eliminate trapped air from hot water radiators, they recommend.
To save money carry out these tasks alongside other energy and money-saving strategies such as insulating and air sealing your home.
(Image credit: Vaillant)
The cheapest way to heat a room depends on a range of factors. ‘We often see experts stating that one type of heating or another is the way to go,’ says Caio Bersot, an energy industry analyst with EnergyRates.ca, a price comparison site. ‘However, there isn’t a one-fits-all answer.
‘Your heating costs depend on a number of things, including the price of electricity and other commodities in your area, the climate where you live, and the size of your home.
‘If you live in Florida, you don't need to worry about heating costs as much as someone in Vermont. Or, if electricity prices are historically lower than natural gas rates in your state, then it probably makes sense to use electricity.
‘Taking a northern climate example, in hydroelectricity-rich Quebec, most people heat their homes using electricity, whereas, in oil-rich Alberta, most households rely on natural gas for heating.
‘If you’re building a house from scratch, there’s also the infrastructure required for each heating system. You need to consider not only the savings at the time of purchase but also long-term costs.’
Plug-in heaters do use a lot of electricity. Heating a space with one of these can add considerably to a monthly electric bill because of the amount of electricity it will take for it to do its job.
If you do use a plug-in heater, be sure to turn it off when you leave a room to keep electricity consumption down – and for safety reasons. They’re also best used for smaller spaces that can be closed off so the heat is retained in the room.
When managing your household budget, you might ask yourself: What is the cheapest way to heat a home? The question has several answers. You will want to have an efficient heat system and then you will want to establish energy-saving tips. Together, this approach could help you slash your power bill and your carbon footprint at the same time without sacrificing comfort.
Heating with natural gas is generally cheaper than heating with electricity. Pricing for gas and electricity do fluctuate, though, and the costs for each are not the same in every area.
In finding the most cost-effective way to heat a house, you can use this resource from Shrink that Footprint to assess your situation and identify the most cost-efficient ways to heat your home. It uses data from the U.S. Energy Information Administration to give you an up-to-date understanding of market rates. Depending on where you live, current market conditions, and how electricity is produced in your area, however, you may find that electricity is cheaper for heating in the long run.
In looking for efficient ways to heat your home, consider these options. You probably have access to many different heat sources, so consider each and then decide what is the cheapest way to heat a home in your situation.
The most cost-effective ways to heat a house with gas include forced air furnaces or boilers for hot water or steam in radiators. In each system, burning gas creates heat that is distributed via ducts or pipes. Since natural gas is plentiful in the U.S., it is usually a more affordable option for many people.
Electric systems include furnaces, boilers, heat pumps and radiant floor heat. Furnaces are often the least expensive to install. Heat pumps in certain environments can cost less to operate over the long haul. Radiant heat within floors or radiators is also highly cost-effective. Maintenance is typically lower with such systems as they have fewer moving parts.
In some places and with some kinds of houses, solar can be a cost-effective method for generating heat. You can install an active solar heating system that uses photovoltaic panels that transfer the sun’s energy to air or liquid that is then circulated in your home.
Considering the pros and cons of solar energy, including the size, construction, and how much sun your home gets will determine the design of the solar heating system that would work best for your house.
In some situations, a space heater can increase your comfort in a few trouble spots without the expense of installing a new system or running a more powerful system. You might have a cold in-home office or a bathroom that is chilly in the morning. Running a portable heater for a short time can be very cost-effective.
If you are running many space heaters for long periods, however, you will quickly find it is not the cheapest way to heat a house with electricity. You are better off looking at alternatives.
You don’t have to shiver through the winter to help the environment and potentially save money on your heating bills. You’ll help to lower your heating costs, maintain a cozy home and cut carbon emissions by following these home heating efficiency tips.
A broken furnace or boiler can leave you in the cold. And worse, it can be dangerous, spewing microbes and allergens into your home. Carbon monoxide fumes are deadly, and a gas leak can cause an explosion.
Lastly, consider the costs. If your system isn’t running smoothly, you are wasting energy and driving up your heating bill. With preventive maintenance, your system runs economically. Yes, you’ll have to spend some money, but maintenance is cheaper than repair — and safer.
Explore getting a smart thermostat to make home heating more efficient. You can program them according to your preferences and patterns. Many systems learn your home, optimizing how your heating system runs to take advantage of the heat of the sun, when you are sleeping and when you are out of the house. You won’t waste money blasting heat when you are at work or heating a room that is already warm from the sun.
Keeping warm air in your home can help improve heating efficiency as your furnace or boiler doesn’t have to work as hard. Here are several ways you can retain warmth:
Prevent cold radiators on a frigid day. Bleed your radiators in advance of cold weather to ensure air doesn’t get trapped in them, blocking the flow of heat. Fortunately, bleeding your radiator to let out trapped air is an easy task:
Beyond improving your home heating efficiency, bleeding your radiators lowers the cost of operating your forced-hot-water boiler. Installing reflectors, thin sheets or foil placed between the coils and the wall, will send more heat into your room. This practice is especially effective for radiators on outside facing walls and walls that are not well insulated.
If you’re wondering how to heat your home efficiently, start with the air filter. Old and dirty air filters block the flow of air, which makes your forced-air furnace work harder. Fortunately, this kind of do-it-yourself HVAC maintenance is simple. To ensure that your furnace is heating your home efficiently, replace the air filter regularly.
Washable air filters reduce your ecological footprint and work well if you regularly clean it with a vacuum cleaner or give it a rinse under running water. To remove serious grime, diluted dish soap will remove oily buildup.
One of the more innovative central heating efficiency tips is to invest in a heat recovery ventilator. These systems capture heat from exhaust air and mix it with fresh intake air. They also remove mold-causing moisture, along with many contaminants and odors, in the process.
Most homes exhaust some air through bathroom fans, kitchen oven hoods and appliances. Heat recovery ventilators capture up to 90% of the heat that would otherwise be lost to the outside.
Furnaces last, on average, up to 15 years. The life expectancy of your unit will vary, depending on the quality and regularity of your maintenance. If your furnace is getting near that 15-year mark, it may simply quit without warning. Start shopping before your furnace wears out so that you can make an informed decision without the pressure. With the right choice and an ENERGY STAR™ rating, you may find it quickly pays for itself in energy savings.
Newer units are also easier to maintain and may offer performance enhancements, like sound absorption and additional insulation. And some forced-air systems are fitted with advanced air filtration systems to help improve the quality of the air inside your home.
When you choose the most efficient home heating system for your situation that turns out to be the cheapest way to heat a home, you can save energy and money without sacrificing comfort. A small effort really pays off in energy savings and a lower carbon footprint.
When it comes to finding efficient ways to heat your home, consider all the factors, including energy prices and climate trends in your state. Constellation’s guide, What’s the Most Efficient Home Heating System?, will help you consider all the details and make an informed choice.
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