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Heating Equipment or Systems Operating Fuel Cost Comparison

Below is a general breakdown of the heating costs for various types of systems based on 2008/2009 fuel and electricity costs as well as equipment or systems efficiencies that are available in 2009.


The total annual cost estimate for an average home is provided for comparison of the most common types of heating equipment.


As can be seen from these charts the clear winner for the highest possible efficiencies is the geo-thermal heat pump system.   The Geo-Thermal heat pump systems will maintain their efficiencies through all but the very coldest conditions. During very cold overnight or morning temperatures these system will loose some of their capacity and efficiency. The next in line for the best efficiency is the air to air heat pump system.

What must be noted for these systems is that they do have an appreciable loss of both efficiency and capacity below about 40 degrees. For this reason the Air to Air Heat Pumps require an additional heat source usually provided by back up electric heat from an electric heating furnace or in the case of a dual fuel or hybrid system a gas furnace is used and as can be seen from the charts this option appears to be the best option for the back up source of heat. If you are presently using an oil furnace the smartest option would be to replace that oil furnace with a geo-thermal heat pump or an air to air heat pump system with an electric furnace.

By far the most affordable option of the two is the air to air heat pump system as you can expect to easily pay twice or three times as much for the geo-thermal heat pump system due to the added buried water piping being required. If you are presently using an electric furnace alone it definitely would pay you back a lot of dollars to install an air to air heat pump on your system. The savings are fairly extensive over time as can be seen from the cost comparison charts. With an electric furnace it pays to allow the heat pump to operate well below 40 degrees as it continues to provide better than 100% efficiency down to as low as 30 degrees and continues to add heat at even colder temperatures.    

For those with a gas furnace now it does make sense to install a heat pump in place of your present air conditioning system, these days you can usually upgrade for an added $1000 to $1500 from a standard air conditioner to a heat pump, this is because of the fact that due to the recent changes in refrigerant laws it has become necessary to change your indoor coil when replacing your air conditioning system and based on that fact the upgrade should be done with a heat pump because based on an averaged operating time of better than 30% above at 40 degrees outside and above the added cost to upgrade to a dual fuel or hybrid system can easily pay for itself in less than three years under most circumstances. Comparison based on utility rates in Southwestern Idaho adjust as needed for your particular area.

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