Electric, Oil or Gas Heat?

By Carole Buia

If you are buying or building a new home this winter, figuring out which kind of heating unit to choose has suddenly become a higher priority.

Natural-gas prices have spiked, oil is not necessarily cheaper, and if you live in Northern California, you are learning that electricity can't be taken for granted. About 53% of home-heating systems in the U.S. use natural gas, which in past years has been the least expensive fuel. Gas also burns cleaner, and the furnaces are simpler to monitor than oil furnaces. Yet because parts of the U.S. (especially the Northeast) lack the infrastructure to transport natural gas, for many the main options are electricity and oil. Of the two, electricity is generally more expensive, less environmentally friendly.

Despite the variety of choices and performance characteristics, experts agree that consumers who invest in things like better insulation and windows to make their homes more efficient will see the cheapest bills in the long run.

--By Carole Buia