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.
The cheapest way to heat your house with electricity is to use a heat pump. Instead of using the energy to create heat (through resistive heating), you use the energy to move heat from a colder area to a warmer area. The most efficient heat pump is a water source heat pump.
Geothermal furnaces, which use ground heat to warm your home's air, are the most expensive.
In total, an air source heat pump is the most costly to buy and install at $10,025, with installation costs making up the larger part of the costs, as installation is difficult and time consuming.
While it can depend on the season and outside temperature, heating a home is often more expensive than cooling it. Heating can consume more energy because the temperature outdoors is significantly lower than the desired indoor temperature. So, your heater has to work harder to get your home to the desired temperature.
The average cost of propane per year (for homes that use propane for heating plus other appliances) is $2,000-$3,000. While this is more expensive on average than electric, it is less expensive than oil and more efficient than both.
Though common, oil systems are one of the most expensive ways to heat a home.
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.
The average monthly home heating oil bill is $154.92. Your average monthly propane bill will run about $134.86, again, with considerable variation by location, provider and the heating efficiency of your home.
Hydrogen has the highest calorific value which is 150000 kJ kg - 1 .
Typically, convection heaters are around 2000W in power output which does make them more expensive to run. On top of this, you might tend to leave a convection heater on for longer periods of time too (compared to radiant heaters).
Keeping heating on low all day is unlikely to save money in the long run. There's always heat loss when heating a home, and extending the time your heating is switched on will increase the amount of heat loss you end up paying for.
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.
Air source heat pumps are far more cost-effective than oil-fired boilers, even when oil prices are low. One of the other main advantages is that electricity prices tend to change much less frequently than heating oil, which can spike and drop on a daily basis.
Natural gas tends to be the most affordable of these options, with the federal Energy Information Administration (EIA) reporting that the average seasonal cost of natural gas heating is currently about 70 percent less per household than for households with oil heat.
As a general rule of thumb, a 20 lb propane tank will last for approximately 10-12 hours when used for heating purposes at a rate of 30,000-40,000 BTUs per hour, depending on the heat setting.
Propane and home heating oil are 19 and 40 percent more carbon-intense than natural gas, respectively. They are also the most expensive options for heating on a dollar-per-BTU basis alongside electric baseboard heating, according to analysis conducted by Atlas Public Policy.
Con: You May Have to Pay a Rental Fee
The biggest disadvantage to a propane heating system is keeping up with tank maintenance – or not. If you own the tank, you're responsible for regular inspections, and you have to fix the problem if there's leaks or corrosion. You might even eventually have to replace the tank.