There are dozens of variations of home heating systems available, but the vast majority fall into one or more of these four distinct categories: forced air, electric,
The four types of central heating systems are gas heating, oil heating, electric heating, and renewable energy systems like solar-powered or geothermal heating.
The majority of North American households depend on a central furnace to provide heat. A furnace works by blowing heated air through ducts that deliver the warm air to rooms throughout the house via air registers or grills. This type of heating system is called a ducted warm-air or forced warm-air distribution system.
Homes in the United States are heated by a variety of fuels. Most homes rely on natural gas for heat, but oil, propane, electricity, and wood are also common.
When it comes to the cheapest heating system to install, electric baseboard heaters take the lead due to their low upfront costs and ease of installation.
According to HomeAdvisor, there is a rather wide range – on average, between $3,800-$12,000, including installation costs. Such a vast difference in pricing reflects the wide number of variables that go into establishing the final cost.
Geothermal systems provide the most efficient type of heating. They can cut heating bills by up to 70%.
Heat Pump Heating Systems
The newest home heating (and cooling) technology is the heat pump, which uses a system similar to air conditioners to extract heat from the air and deliver it to the home via an indoor air handler. Standard home systems are air-source heat pumps that draw heat from the outdoor air.
CHEAP AND EFFICIENT HEATING
Natural gas is usually the cheapest way. Even with higher gas prices, a heating system fueled by natural gas is typically less than electricity, propane, or heating oil.
Ask twenty professional HVAC contractors the question, “How Much Does A New Furnace Cost?” and you'll probably get the same answer... “It depends.” On average, the cost of a new furnace can range from $2,000 - $14,2001. However, factors like furnace efficiency, type, size, and much more can impact this range.
New build developers currently have a choice of heating systems, including modern gas boilers, electric heating, and biomass boilers. From 2025, the new building regulations state that heating systems which burn fossil fuels, i.e. oil, LPG and natural gas boilers, will be banned from new builds.
Heat transfer is classified into various mechanisms, such as thermal conduction, thermal convection, thermal radiation, and transfer of energy by phase changes.
1. Gas boiler. A gas boiler is still the cheapest way to heat your home when comparing various heating systems, especially when analysis the latest figures from Ofgem. As of December 2024, the cost of gas is 6.24p per kWh, a 10% increase on the previous quarter, and still higher year-on-year.
Unlike traditional space heaters, many solar air heaters typically need to be mounted to a roof, wall, or window, in order to collect the sun's heat. Some of these collectors can be heavy and installation may require a building permit. The way they work is relatively simple.
Furnace and Boiler Systems
The U.S. Energy Department says furnaces and boilers are the most common heating systems in the country. According to David, they're also the most economical – at least those powered by natural gas. “Natural gas is still the least costly form of energy in most of the country,” David says.
Ideally you should heat your home to a temperature of at least 18 °C. This is particularly important if you have reduced mobility, are 65 or over, or have a health condition, such as heart or lung disease. Having room temperatures slightly over 18 °C could be good for your health.
The average cost to install a geothermal heat pump typically ranges from $10,000 to $30,000, depending on factors like the size of the system, property location, and installation complexity. Horizontal loop systems tend to be less expensive, while vertical systems, which require deep drilling, are on the higher end.
This shows natural gas is the cheapest type of heating to run and heating oil is the most expensive way to heat a home.