Most Cost Efficient Heating Options

• Readily available and and renewable sources will usually equal lower cost.
  
  Natural gas and propane are popular heating choices nationwide, due to the ready availability of natural gas and the energy efficiency of gas furnaces as measured by the Annual Fuel Utilization Efficiency (AFUE). Most of these systems have an AFUE rating of between 78% and 98%. Condensing furnaces, vented with plastic pipe, have a higher cost initially, but efficiency ratings around 95% result in worthwhile savings on lower monthly fuel costs.
  
  Geothermal heat pumps, which extract heat from water, are especially efficient when there is access to a large, renewable body of water such as a lake or well. The system taps into the water source, then circulates the water through a heat pump and into the home before returning it to its source. Without access to a large enough water supply, a ground loop geothermal heat pump system is preferred. This system uses a large, underground pipe system from which heat is extracted from ground water by a heat exchanger.
  
  Finally, one of the most eco-friendly and energy efficient types of heating systems is one built around solar heating. An elaborate solar heating system as the only source of heat is not a practical option in most geographic areas -- estimates are that only about 10,000 homes in the USA are totally solar. Passive solar heating uses the basic principle of allowing the sun's heat in when it is available. Having collected that solar energy, the system radiates it to the walls, floors, etc. As a supplement to a geothermal system for the home, however, all of the home's heat sources become totally renewable and such systems can provide tremendous savings on energy bills.
  
  

Consult Professionals

• The American Council for Energy-Efficient Economy (ACEEE) offers a chart for calculating how much money you are likely to save each year with a more efficient system and a table for what efficiency levels ACEEE recommends for new central heating systems.
  
  The general rule of thumb is for a heating system to have a life expectancy of at least twenty years. If yours is well-maintained and in good operating condition, it might be wise to take further energy conservation steps such as installation of a programmable thermostat and weatherizing measures. However, a furnace more than ten years old and in need of major repairs should probably be replaced.
  
  Before you make any decisions for installing a new heating system or replacing an existing furnace, collect bids from professional contractors. Most contractors will provide an evaluation and estimate bid at no cost.