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.
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. However, it's essential to weigh these savings against the higher operating costs associated with electric heating.
Gas is generally cheaper than electricity – and modern gas boilers are more energy-efficient than their older counterparts, as reported by Check A Trade. As of January 2025, gas per kWh will be 6.34p, compared to electricity, which will be priced at 24.86p per kWh.
Installation of electric heating systems is usually easier and less expensive than gas systems. Control over temperature settings also tends to be more exact when using electricity. The potential cost savings also comes from the shift to cleaner energy sources and their long-term efficiency.
After comparing various systems like for like, gas central heating is the cheapest heating method. Here's what each fuel costs per day on average: Gas central heating averages out between €8.00 and €15.00. Electric central heating averages around €10.00 and €18.00.
Choosing a low-energy consumption heating system for your home. Here are some of the most commonly used low-consumption heating systems today: heat pumps, both geothermal and air source; pellet stoves and boilers; low-consumption electric radiators; and condensing boilers.
The average cost of installing central heating is between £3,500 and £7,000. Central heating installation costs can include a boiler, radiators, pipework and heating controls. Depending on which type of boiler you opt for, you may also need a hot water storage cylinder as well as feed and expansion tanks in the loft.
Though common, oil systems are one of the most expensive ways to heat a home. Natural gas is cheaper, but there are some hidden costs to switching. When you're considering oil vs. natural gas, there are a few things to consider before you pick one.
Hybrid Heating Systems
A hybrid heating system, also known as a dual-fuel system, combines an electric heat pump with a gas-powered furnace to maximize performance and energy efficiency. When temperatures outside are moderate, between 40- and 60-degrees Fahrenheit, a heat pump works effectively to keep a home warm.
Generally speaking, Halogen heaters are one of the most inexpensive types of electric heater. They average around 1200W in terms of power output and because they provide instant-heat at close quarters, you shouldn't need to leave them on for long periods of time.
Heat pumps: 10 to 16 years. Furnaces and boilers: 15 to 20 years. Geothermal heat pumps: 25 to 30 years; ground loops will last upwards of 50 years. Solar: 25 to 30 years.
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.
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.
Ductless Heating
Ductless heat is the most efficient form of heating on this list (and overall) and will save you the most money over the long-term. They're quiet, sleek, and don't take up a lot of space. You can have them installed in the ceiling, on your wall, or even near your floor.
Revolutionary heat pump technology
They use 75% of natural resources from the air, ground or a water source to provide heating and hot water comfort for your home. The remaining 25% is powered through electricity in order to operate.
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.
Also, natural gas furnaces are among the cheapest heating units to install, at $2,000 to $5,200 total for a standard-efficiency unit or $3,300 to $6,900 total for a high-efficiency unit. The following table details the pros and cons of heating with natural gas.
Coal is precisely the opposite: the cheapest option to buy but also the least efficient. Let's explore the cost factors affecting each form of heating in a bit more detail.
One of the greatest benefits of converting your home from gas to electric is that you can greatly reduce your utility bills. Electric heating systems often boast higher energy efficiency, resulting in lower utility bills. Compared to using a gas furnace, a heat pump can lower your energy costs by at least 50%.
Central heating systems must be installed in accordance with strict safety standards set by local authorities and only qualified professionals are allowed to carry out this work.
For a standard-efficiency air conditioner and furnace with simple duct layout, you can expect an average HVAC installation cost of around $10,000–$15,000, based on market research by the This Old House team. However, if you own a larger home and want premium-efficiency equipment, total project costs can exceed $20,000.
There are several ways to use central heating in the most economical way possible. By using a programmable thermostat, sealing leaks and drafts, using curtains, closing doors, and considering alternative heating solutions, you can reduce your heating bill significantly.