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Table Comparing Current Home Heating Costs for Oil, Gas, Electricity, Firewood in the U.S. InspectAPedia ® Enter your search terms Submit search form   Search This Website - InspectAPedia.com

• A comparison of heating costs by fuel type - latest data
• Cost per 1000 BTUs for Home Heating Oil, Natural Gas, Electricity, Firewood
• Comparing heating system efficiencies; other heating cost factors.
• How to save on home & office heating costs

This article provides a table which compares home heating cost for different energy sources: home heating oil, electricity, natural gas, and firewood in the United States. We provide tables listing current costs of various building heating fuels, historical heating fuel costs, including heating costs for coal and propane heaters, efficiency of different types of heating equipment, other costs associated with each type of heating system, and links to articles on how to reduce heating costs.

We also include formulas to adjust our current heating cost calculations to local prices in your area, and we provide links to energy cost sources, predictions of changes in energy costs, and to articles explaining how to save on home heating costs through heating system adjustments and service, insulation, stopping drafts, etc. Sketches in this article are courtesy Carson Dunlop. © Copyright 2008 Daniel Friedman, All Rights Reserved. Information Accuracy & Bias Pledge is at below-left. Use the links at page left to navigate this document or to go to Other Website Topics. Green links at left show where you are in our document & website.

A Comparison of Current Energy Costs: Heating Oil, Natural Gas, Firewood, Electricity

Heating Cost Predictions by the US EIA

According to the U.S. Energy Information Administration, "Average household expenditures for all space-heating fuels are projected to be $1,137 this winter (October 1 to March 31), a 15-percent increase over the estimated $986 spent last winter.  The largest increases will be in households using heating oil and natural gas. 

The projected increases primarily reflect higher prices, although colder weather than last winter will also contribute to higher fuel use in many areas. During 2008, the cost of natural gas and coal for electric utilities is projected to be 36 percent higher and 12 percent higher, respectively, than last year. 

As electricity providers continue to pass along these increased costs, U.S. residential electricity prices are expected to grow by 6.2 percent this year and 9.4 percent in 2009.  Price increases are expected to be especially pronounced in the Middle and South Atlantic regions."

Table Comparing Latest Home Heating Energy Costs in the U.S. for Oil, Gas, Wood, Electricity

Data Sources: Gas and oil and wood prices from various sources listed below including the U.S. Energy Information Administration - October 2008 data.

[1] How do we calculate fuel cost per thousand BTUs: In the boxes of our table above, we note in smaller font the HC and UC values computed to assure that the scale is the same in both heat content and unit cost before calculating the cost per thousand BTUs in cents. A BTU (British Thermal Unit) is a measure of heat energy defined as the quantity of heat that would be required to increase the temperature of one pound of water by one degree Fahrenheit. Since we convert all of our fuel costs into cost per 1000 BTUs we can then make an "apples to apples" comparison among fuels. See HEAT LOSS: How to Calculate Heat Loss in a Building for more details.

Unit Cost (UC)__ x 100 = Heat Cost per 1000 BTUs
Heat Content (HC)

(We multiply (UC / HC) x 100 to express our final number in "cents" per 1000 BTUs just for ease of reading.)

Example: for No. 2 home heating oil, to obtain the heating oil cost per thousand BTUs, we divide 3.71 (cost per gallon) by 140 (thousands of BTUs in a gallon).     (3.71 / 140) x 100 = 2.65 cents per 1000 BTUs of oil heat

Example: for Electric heat, to obtain the electricity cost per thousand BTUs, we divide .11 (cost per KWH) by 3.413 (thousands of BTUs in one KWH). Incidentally, FYI the number of KWH needed to provide 1000 BTUs of electric heat = 1 / 3.413 or 0.29 KWH.      (0.11 / 3.413) x 100 = 3.22 cents per 1000 BTUs of electric heat

Contact Us by email to suggest content additions or corrections to this table comparing building heating fuel costs.

Table 2 - 1982 Heating Fuel Cost per BTU

Heating costs became a great concern to Americans during the 1973 oil embargo when home heating oil costs soared from 1972 prices of $ 0.20 per gallon to a new high of $1.73 a gallon in 1973. Homeowners rushed to find alternative ways to keep warm. Some people tried heating with wood (the author); portable kerosene heaters became popular (and very dangerous when not properly used, leading to fires and deaths).

Coal stoves, and solar energy saw renewed interest. About a decade later in 1982 debate continued among energy suppliers about whose fuel was most cost-efficient. Oil heating companies argued that electricity was the most costly way to heat a home; electric companies rebutted that heat pumps were efficient. Coal and woodstoves improved in energy efficiency and ease of use. In the Hudson Valley area of New York State coal usage increased at one coal dealer from 40 customers and 1000 tons in 1980 to 600 customers and 3000 tons of coal in 1982.

Tables 2 and 3 below provide comparable heating cost data for 1982. In 1982 we suggested and currently in 2008 we still recommend that people wanting to save on home heating costs start by making their home properly insulated and sealed against drafts.

1. Poughkeepsie Journal, 11/28/1982

Table 3 - Comparison of the Cost of Heating Fuels with Efficiency of the Heating Devices that Use Them

The basic cost of heating fuel per BTU is not enough data to determine the most cost efficient way to heat a home because even with a lower-cost fuel in hand, if the efficiency of the heating equipment is low you may be sending a high portion, up to 50%, of your heating fuel dollars up the chimney instead of into the building.

For example, because an indoor kerosene heater requires extra combustion air to avoid potentially fatal carbon monoxide hazards, some folks tried increasing the safety of their heater by leaving a window open. But drawing more cold air into the building can result in a net increase in heating cost. (Portable kerosene heaters may be both unsafe and illegal for indoor heating use - check with your local fire officials and building officials.)

1. These efficiency factors were calculated as the percentage of energy extracted from the fuel (compared with the amount of energy in the fuel itself).

If a heating appliance were 100% efficient, 100% of the heat energy in a given unit of heating fuel would be extracted by the heater and delivered to the heat distribution system (hot water baseboards, radiators, warm air supply ducts, electric heating baseboards). What the table and data also do not reflect are efficiency losses in the heating distribution system itself, such as leaky air ducts or improperly routed hot water heating pipes. -- DF.

2. This data is for un-vented kerosene heaters (a safety concern).

3. Central Hudson Gas and Electric estimate, 11/28/1982

Table 4 - Other Fuel Cost Factors that should be Weighed When Comparing Home Heating Costs

In addition to comparing the current cost per BTU of heating fuels in your area (Table 1), and comparing the relative efficiencies with which your heater converts the BTUs to heat delivered into the building (Table 3), we also need to consider other costs associated with each fuel including those listed below:

Notes to Table 4: General comment: be sure that your home has working smoke detectors and carbon monoxide detectors regardless of choice of heating fuels.

(1) Delivery cost is normally included in the price for this fuel.

(2) Delivery cost may be included in the price for firewood; variation in actual amount of BTUS delivered varies significantly depending on the species and dryness of the firewood and the tightness of stacking of the cord or face cord that is delivered.

(3) Maintenance must include daily stove cleaning and removal/disposal of ash and slag waste

(4) Annual inspection and maintenance recommended for safety; gas fired equipment generally requires less cleaning and adjustment than oil-fired equipment; improperly operating equipment or a damaged or blocked chimney is dangerous and can produce carbon monoxide hazards.

(5) Annual maintenance is necessary; failure to maintain oil fired equipment is likely to result in significantly lowered heater efficiency, increased heating cost, and possible loss of heat.

(6) We have not considered environmental cost associated with pollutants depending on the utility company's choice of fuels to be consumed at the power generating plant, such as high vs low sulphur content coal, acid rain, cost of nuclear site protection, disposal of nuclear waste, nor of plant replacement costs which will affect current or future utility company rates.

We have also not yet included a comparison these additional heating cost factors:

• Building air leaks and insulation defects: we assume that this value is constant when comparing heating fuel costs.
• Installation cost for the heating equipment, varies by type of equipment and geographic area
• Heating equipment life expectancy or durability of different types of heating equipment; longer-lived equipment provides a longer payback period before it has to be replaced. Heater life is also affected by the level of maintenance it receives. For example, unattended leaks on a heating boiler can destroy it.
• Heating distribution system efficiency differences, which vary by type of distribution (hot water, warm air, electric baseboard) and also by the condition of the system (leaks in a hot air duct, hot water heating pipes routed through cold spaces).
• Heating fuel availability (and price) varies by type of fuel and geographic area;
• Heating fuel source choice alternatives among suppliers which varies by fuel and geographic area, i.e. competition
• Renewable vs non-renewable energy sources;
• Solar and Wind energy alternatives and payback time for purchasing & installing such new equipment;
• Heating system comfort: opinions vary among occupants who may prefer hot water heat, steam heat, warm air heat, radiant heat, etc. While this is a subjective judgment, differences in opinion will indirectly impact heating cost. For example if someone feels uncomfortable with a particular type of heating system and fuel they may set their thermostat higher in compensation, thus using more energy than they might with a different delivery system. Evenness of building temperature and thus comfort can vary by heating system type as well as by how the heating system is used (for example keeping a warm air furnace blower fan on continuously or running it intermittently).

List of Articles on How to Reduce Home Heating Costs

• Air Duct Systems for Heating & Cooling - Make sure your warm air ducts are properly installed, not crimped, leaky, missing insulation, or contaminated.
• Heating Fuel Costs Compared: A Comparison of Current Energy Costs: Heating Oil, Natural Gas, Firewood for a table comparing the cost per BTU of different heating fuels.
• HEATING COST SAVINGS METHODS - Heating Cost Reduction Advice: How to Save on Home Heating Costs - Book Review & Actual Heating Savings and Energy Savings Tips for homeowners and service technicians, gas & oil heat money saving tips, thermostat tips, tuneup tips.
• Heating System Inspection & Repair Procedures for Oil-Fired Heating Boilers and Furnaces Detailed step by step approaches for inspecting, servicing, repairing, and tuning up heating systems for economical performance
• Heating Loss Diagnosis: How to diagnose loss of heat, when the oil burner, boiler, or furnace won't run, or when the system runs but heat is not delivered to the living area
• How to Calculate Heat Loss in a Building - guide to calculating the rate of heat loss for different areas, insulation, materials
• NO HEAT - Boiler & Furnace Diagnosis Guide - where to start in figuring out why the heating system is not working
• Radiant Heat Floor Mistakes to Avoid - don't let these foolish installation errors ruin your radiant heat floor system
• Thermal Tracking & Stains & Signs of Heat Loss how to recognize thermal tracking or thermal bridging & how to diagnose Stains on Ceilings & Walls, Building Air Leaks & Insulation Defects, as well as other indoor air quality or building concern.

Technical Reviewers & References

Particular thanks are due to experts and also consumers who read these articles and suggest corrections, changes, and additions to the material. Content suggestions, technical corrections and content critique are invited for any of the content at our website.

• Daniel Friedman - principal author/editor of the InspectAPedia ^TM Website
• Thanks to Alan Carson and Bob Dunlop, Carson Dunlop, Associates, Toronto, for permission to use illustrations from their publication, The Illustrated Home which illustrates construction details and building components. Carson Dunlop provides home inspection education, publications, report writing materials, and home inspection services. Alan Carson is a past president of ASHI, the American Society of Home Inspectors.
• "Heat sources, how do they stack up?", Dennis Kipp, Poughkeepsie Journal, 28 November 1982. The Journal article obtained some of its information from Daniel Brown, an energy consultant from Amenia, N.Y. Also interviewed were coal and oil suppliers and Central Hudson Gas and Electric corporation, all from the Hudson Valley area of New York State.
• Critique, contributions wanted: Contact Us to suggest text changes and additions and, if you wish, to receive online listing and credit for that contribution.

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