Topic

Heating: what each fuel costs to keep the house warm

Heating is the biggest energy bill for most homes in cold states, and the fuel decides most of it. Last heating season, natural gas averaged $1.43 per therm nationally, while heating oil started this season at $6.04 and propane at $2.60 a gallon.

Comparing fuels fairly

Fuels are sold in different units (therms, gallons, kilowatt-hours) and burned in equipment with different efficiencies, so their prices cannot be compared directly. The fair comparison is the cost of a fixed amount of heat delivered into the house. The pages here convert every fuel to dollars per million Btu of delivered heat, using EIA's heat content for each fuel and the efficiency of the equipment you choose.

Heat pumps change the arithmetic because they move heat instead of making it: in a typical season a heat pump delivers two to three units of heat for each unit of electricity it uses, depending on the model and how cold it gets. That is why a heat pump can beat a gas furnace even where electricity costs several times more per Btu than gas.