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.
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.
Heat pump heaters and reverse cycle air conditioning units are the most energy efficient heating system you can buy, compared to a conventional electric heater.
Keeping your home at a constant temperature generally means that your HVAC system will run constantly to meet it. This means that your furnace or air conditioner may run when you're asleep, at work, or out of the house. This wastes more energy than the minimal amount that you might save by having it constantly run.
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.
While there are occupants in the house, it is advised for homeowners to set their thermostats between 68 and 72 degrees to promote maximum comfort. A pleasant temperature for everyone in the house, regardless of the apparel they are wearing, is between 68 and 72 degrees, which is neither too warm nor too cool.
Alternate forms of heat can help you lower that temperature for an additional cost and energy savings. Nighttime: “Lower the thermostat setting by a few degrees during the night, ideally around 62°F-65°F,” suggests Roberson.
Thermostat settings play a pivotal role in managing your heating system's efficiency. It's a common misconception that leaving your heating on at a constant temperature is more energy-efficient than turning it on and off. Does turning the heat on and off raise the bill each month? The answer is no.
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 fix: Lower your home temperature to 68 degrees when you're home. Maintain comfort by adding extra layers of clothing – try fabrics like fleece, flannel and wool – and don't forget comfy slippers and blankets. If you can comfortably go a degree or two cooler than 68, your wallet will benefit even more!
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.
The World Health Organization (WHO) recommends setting your thermostat no lower than 64 degrees (F) in the Winter months while people are in the home. If there are infants or elderly individuals, they recommend keeping the temperature at 70 degrees at a minimum.
Thermostat Operation
The smaller the difference between the indoor and outdoor temperatures, the lower your overall cooling bill will be. You can easily save energy in the winter by setting the thermostat to around 68°F to 70°F while you're awake and setting it lower while you're asleep or away from home.
There may be drafts and pockets of colder air near the floor; The walls are colder and don't emit the usual amount of infrared radiation, so you lose heat due to your body emitting more IR than it receives; You may spend more time indoors and hence have less physical activity, so your body generates less heat.
The World Health Organization recommends a thermostat setting no lower than 68 degrees while you're home. If you have children or seniors in your house, that number increases to at least 70 degrees. If your house is too cold, it can cause problems with blood pressure and circulation, as well as affect your heart rate.
With all that said, as a general rule of thumb, the ideal temperature for the elderly in a living room is 21°C, or 70°F, and above, and it's a minimum of 18°C, or 64°F, in the bedroom. Bathrooms, meanwhile, should be between 22°C and 24°C, or 71°F and 75°F.
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.
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.
How much value does a new HVAC unit add to your home? A new HVAC unit typically adds about $2,500 to $3,000 to the value of your home or about 5% to 7% of your home's value. Since a new unit can cost up to or more than $10,000 to install, it's up to you to decide if the upfront cost is worth the added value.