When deciding on the best home heating system, understanding how the various types work, their pros and cons, and approximate costs, is an excellent starting point.
We’ve provided enough information to help you make an informed decision that saves you time and money in the long run.
To get started on installing a new heating system, contact our local pros for FREE ESTIMATES!
Average Total Cost For Home Heating Systems In America
The typical cost of a heating system ranges from $12,800 to $18,500.
Installing the heating system generally costs approximately $4,870 to $6,470.
| Average Cost for Heating Systems in the US | |
|---|---|
| Average Heating System Installation Cost | $4,870-$6,470 |
| Typical Heating System Cost | $12,800-$18,500 |
Let’s Compare The Top 10 Heating Systems
To help get you started with comparing the different heating options, here are ten heating systems, with the approximate costs and pros and cons of each.
Active Solar Heating
An active solar heating system uses solar energy to heat a fluid and then transfers solar heat straight into the interior space or storage system for later use.
If the active solar heating system cannot provide adequate space heating, a supplementary or backup system delivers the extra heat.
Liquid-based methods are primarily used when storage is included and are better suited for radiant heating systems, boilers, or heat pumps.
An active solar heating system distributes heat via the radiant floor, a central forced-air system, or hot-water baseboards.
The average cost of an active solar heating system is around $3,535.
The price range for active solar heating installation is approximately $1,667 to $5,402.
| Active Solar Heating | |
|---|---|
| Average Cost | $3,535 |
| Average Price for Installation | $1,667-$5,402 |
Pros
- More eco-friendly heating method
- Helps minimize electricity bills
- Can be installed in any location
Cons
- Requires expensive maintenance
- Relies on traditional heating systems to work
Did you know? Furnace heating systems have been around since 1200 BC. The Romans were the first known civilization to use a warm-air heating system.
Furnace
Most U.S. homes are heated with a furnace or boiler (more on boilers later).
A furnace is a forced air distribution system that works by heating air and then distributing it throughout the home via ducts using a fan.
Although most furnaces work similarly, they use different fuel types.
The three common types are as follows.
Natural Gas Furnace
The natural gas furnace is the most common of the three, and they are the cheapest to run and ideal if you live in cold climates.
The total costs for mid- to high-efficiency gas furnace units are approximately $700 to $6,200, while installation costs are from $1,000 to $3,500.
| Natural Gas Furnace | |
|---|---|
| Average Cost for Mid to High-Efficiency Units | $700-$6,200 |
Electric Furnace
Electric furnaces use electric current instead of burning fuel.
Although they are less efficient and more expensive than their gas or oil counterparts, they last longer and are more eco-friendly.
Electric furnaces are also cheaper to install.
Electric furnace units typically cost around $600 to $2,700, and installation costs between $1,000 and $3,500.
| Electric Furnace | |
|---|---|
| Average Unit Cost | $600-$2,700 |
| Installation Cost | $1,000-$3,500 |
Oil Furnace
Although many Americans heat their homes using the oil furnace method, its popularity is slowly declining.
It is becoming the least common of the three due to rising costs and environmental concerns.
This type is suitable when your home isn’t connected to natural gas and you wish to lower your energy bills.
The typical cost for an oil furnace unit is approximately $1,800 to $3,200, while the installation cost is $2,500 to $6,000.
Check out our guide on the differences between installing a Furnace vs Boiler, to figure out which heating is best for you.
| Oil Furnace | |
|---|---|
| Average Unit Cost | $1,800-$3,200 |
| Installation Cost | $2,500-$6,000 |
Pros
- Offer heating and cooling in one unit
- Provide reliable heating
- Are low-maintenance
- Long lifespans
Cons
- Expensive to run
- Pose a risk of carbon monoxide poisoning
- Do not last as long as the electric type
Boiler
Boiler heating systems are more common in older homes and apartments, and they heat the house by converting energy from gas, oil, or electricity.
Typically the boiler heats a radiator system, but it can also operate as a water heater for other fixtures and appliances.
Although most boilers run on natural gas or propane, some properties use heated oil stored in an oil tank near the boiler.
Some boilers are run using electricity, although this is less common.
For a 2,000-square-foot home, a boiler with a BTU of 60,000 to 90,000 will generally suffice.
For a 90,000 BTU boiler using electricity, you can expect to pay approximately $2,750 to $5,000 for the unit.
For the same boiler capacity using gas or propane, it’s around $5,080 to $7,800.
And if you were to use oil to run a 90,000 BTU boiler, the approximate cost for the unit is $5,810 to $8,920.
| Boiler | |
|---|---|
| Average Cost for 90,000 BTU Boiler | $2,750-$5,000 |
| Average Cost for 90,000 BTU Boiler Using Gas or Propane | $5,080-$7,800 |
| Average Cost for 90,000 BTU Boiler Using Oil | $5,810-$8,920 |
Pros
- Cost efficient
- Do not dry out the air
Cons
- Can’t be combined with air-conditioning
- Risk of gas leaks
Did you know? Boilers use what’s called a closed system. They are a good choice in this regard since they repeatedly recycle heater water and do not use more energy than most other heating systems.
Heat Pump
Heat pump systems are like the new kids on the block.
This modern system uses a similar technique to air-conditioning by extracting heat from the air and distributing it around the home via an indoor air handler.
Its very important to understand heat pump efficiency so you get a system that is powerful enough for your heating needs.
The “mini-split” or “ductless” heating system is the most popular heat pump system.
The heat pump uses a small outdoor compressor unit, and the indoor air handlers can be placed in rooms around the house.
They offer the flexibility of delivering air-conditioning in the summer and heat in the winter.
Heat pumps are much more efficient than regular electric heaters and air-conditioning units.
There are four main types of heat pumps.
Air-Source
Air-source heat pumps trap air from outside refrigerants, then compress it to send hot air through the centralized ducts throughout the home.
You can expect to pay between $3,500 and $7,500 for the air-source unit and installation.
| Air-Source | |
|---|---|
| Average Cost for Unit and Installation | $3,500-$7,500 |
Geothermal
The geothermal heat pump heats and cools the home using the earth’s constant temperature by collecting and storing it in a loop of pipes called a heat exchanger underground.
For the geothermal unit and installation, you can expect to pay approximately $13,000 to $36,000.
| Geothermal | |
|---|---|
| Average Cost for Unit and Installation | $13,000-$36,000 |
Ductless Mini-Split
The ductless mini-split system helps mitigate the 30% energy loss caused by ductwork in HVAC systems by using a small indoor unit in each area connected to the outdoor component.
These types of heat pumps cost around $1,500 to $5,000, including installation.
| Ductless Mini-Split | |
|---|---|
| Average Cost for Unit and Installation | $1,500-$5,000 |
Gas-Fired Heat Pump
Gas-fired heating systems are ideal for larger buildings, as the five-ton system can accommodate large spaces and facilities with different temperature zones.
Overall, the average cost for a standard unit and installation is approximately $4,500 to $8,000.
| Gas-Fired Heat Pump | |
|---|---|
| Average Cost for Unit and Installation | $4,500-$8,000 |
Pros
- Inexpensive to run
- Lower carbon emissions
- Last 50+ years
Cons
- Can’t withstand cold weather
- Usually require permits
Did you know? High-efficiency heat pumps are more effective at removing humidity from home than traditional air-conditioners.
Consider a heat pump for a sweat-free summer and cozy winters.
Electric Resistance Heating
An electric resistance heating system is 100% energy efficient since all inward electric energy is transformed to heat.
But most electricity is generated from coal, oil, or gas generators that convert just around 30% of the fuel’s energy into electricity.
Due to electricity creation and transmission losses, this electric heating is more expensive and is generally not used as a primary heating source.
Electric resistance heating systems make ideal supplemental heating systems for home offices, season rooms, basements, and homes without other heating options.
The average cost to run a typical 1,500-watt electric heater in the U.S. is $0.20 per hour and, at ten hours per day, that’s $13.66 per week.
| Electric Resistance Heating | |
|---|---|
| Average Cost to Run 1,500-Watt Heater | $0.20 per Hour |
| $13.66 per Week (10 Hours per Day) |
Pros
- Can be installed
- Easy to control and regulate
- No risk of carbon monoxide
Cons
- Significantly increase electric bills
- Slight electrical hazard risk
In-Floor Radiant
An in-floor radiant heating system delivers even heat throughout the home.
Generally, this heating system heats the floor with warm water pumped through plastic tubing inside concrete floors or attached underneath wood floors.
Compared to other heating systems, in-floor radiant heating is very quiet.
Some in-floor radiant heating systems use electrical wiring to heat stone tile or ceramic flooring.
Although in-floor radiant is known to be slow to heat up and adjust to temperature changes, it offers comfortable heat all over the home once it gets going.
An entire heating system can cost around $10 to $20 per square foot.
| In-Floor Radiant | |
|---|---|
| Approximate Price Range | $10-$20 per Sq Ft |
Pros
- Offers uniform heating
- Requires no maintenance
- Hypoallergenic
Cons
- Flooring requires replacement
- Slightly elevates floor height
Pro Tip: If you decide to go for in-floor heating, ensure the installer uses a proper radiant base system to prevent any issues in the future.
A circular pump failure is the most common occurrence with radiant floor heating systems. Be sure to choose the right circular pump to fit your requirements and ensure that your contractor adheres to the specs and installation method advised by the manufacturer.
Electric Space Heater
Electric space heaters work a bit like toasters; they are oil-filled or use ceramic plates and convert electricity to heat.
Electric space heaters are also known as portable or plug-in space heaters and are ideal if you don’t live in a very cold climate.
Electric space heaters deliver controlled and targeted heat within seconds of connecting to a power source.
Some electric space heaters include cooling fans, making them suitable for studio apartments, basements, and smaller rooms.
Most common sized 1,500-watt space heaters will cost approximately $0.20 per hour to run.
The range is $0.10 to $0.42 per hour for 750- to 3,000-watt space heaters.
| Electric Space Heater | |
|---|---|
| Average Cost to Run 1,500-Watt Space Heater | $0.20 per Hour |
| Average Cost Range for 750-3,000-Watt Space Heaters | $0.10-$0.42 per Hour |
Pros
- Available in many designs
- Deliver instant heat
Cons
- Potential fire hazard
- Can only heat a small area
Hybrid Heating
A hybrid heating system marries the heat pump’s energy efficiency with the power of a gas furnace.
Mainly, the heat pump functions at full capacity to heat the home, and the furnace kicks in to balance the system and achieve comfortable temperatures during extreme weather conditions.
Since each heating system complements the other, there is less strain on both systems, therefore hybrid heating requires minimal replacements and repairs.
The average national cost of installing a heat pump to work with your existing gas furnace is $9,500, and the average range is between $7,500 and $12,000.
| Hybrid Heating | |
|---|---|
| Average Cost to Install Heat Pump | $9,500 |
| Average Cost Range | $7,500-$12,000 |
Pros
- Operates automatically
- Delivers continuous heating
- More energy-efficient
Cons
- Twice as many components to maintain
- Typically more expensive to install
Baseboard Heater
Baseboard heating systems or hydronic systems are a modern type of radiant heat that can be significantly efficient.
It uses a central boiler to heat water that circulates through a system of water pipes to unobtrusive baseboard heating units.
This setup is an updated version of the upright radiator technology.
Buying and installing a baseboard heater should cost approximately $300 to $500 each.
| Baseboard Heater | |
|---|---|
| Average Unit and Installation Cost | $300-$500 Each |
Pros
- Quiet
- Inexpensive to install
- Can last for 20 years or more
Cons
- Need to run constantly for maximum efficiency
- Must be cleaned often
Did you know? Natural gas and electricity are the two most popular ways to heat homes in the Northeast.
Fuel sources like propane, kerosene, wood, and other fuel types are options but are only used in approximately 15% of homes.
Gravity Air Furnace
The gravity air furnace is an updated version of the old-style furnace heating system.
A gravity air furnace distributes air via the ducts. But instead of pushing air through a blower, it allows warm air to elevate and cool air to sink.
The gravity air furnace is located in the basement, and all the rooms in the home connect to the furnace through its air duct.
Several ducts emerge from the top of the furnace, which is why the gravity furnace is nick-named “octopus furnace.”
Gravity air systems are no longer installed. The cost of maintaining these heating systems in older homes should be minimal.
Pros
- Require very little maintenance
- Quiet
Cons
- Less energy-efficient than newer furnaces
- Slow to adjust temperature
What Are The Four Main Types Of Home Heating Systems?
The four most common types of heating systems in North American households are as follows.
- Forced air distribution systems using a natural gas furnace
- Traditional boiler and radiator system
- Heat pump mini-split system
- Electric heaters used for supplementary heating
What Is The Most Efficient Home Heating System?
Geothermal heat pumps deliver effective and efficient warmth by using the earth’s heat.
Today’s most efficient geothermal heat pumps have efficiency ratings of more than 45 EER for open-loop systems and 35 EER for closed-loop systems.
They pay for themselves via reduced energy bills in warm and humid climates, and are ideal for cold temperatures.
However, a geothermal system is not the best economical choice in milder regions with a lower requirement for heating or cooling.
Furnaces are another efficient heating method, especially when the fuel source is natural gas.
In addition to this method having high efficiency ratings, another great advantage is its relative affordability.
Which Is The Cheapest Way To Heat Your Home?
The cheapest way to maintain heating throughout your home is via a gas-based fuel source.
The following heating systems all have the option to use natural gas as the fuel source.
- Furnace
- Boiler
- Heat pump
- In-floor radiant
- Baseboard heater
- Hybrid heating
Did you know? Natural gas is odorless. This could make poisoning or accidents via gas leaks even more dangerous. So before it’s distributed through the pipelines, energy companies add an odorant that smells like rotten eggs, so it’s detectable.
Most Efficient Heating System For Cold Climates
The geothermal heating system, known as ground source heat pumps, has long represented the gold standard for zero-carbon heating in cold climates.
Geothermal heating offers unmatched efficiency, cheap maintenance, and longevity.
Hybrid heating systems are another reliable form during the winter months.
Since hybrid heating comprise two individual systems, should one unit fail, the other will continue to keep your home heated.
Hybrid heating systems eliminate a single source of failure.
Choosing The Best Home Heating System For You
To ensure your home maintains a cozy environment inside when it’s cold outside, it’s essential to consider various home heating systems.
We hope we’ve provided you with a clear understanding of how each system works, what’s required to run it, the pros and cons, and approximate costs.
Energy efficiency and your local climate are important considerations.
For example, geothermal heat pumps are one of the most energy-efficient. However, they’re not the most cost-effective in moderate climates.
