As temperatures drop, ensuring your home stays warm and cozy becomes a priority. If you’re building a new home or considering upgrading your home HVAC system, choosing the right one can significantly impact your energy bills, comfort, and environmental footprint. In this blog, we’ll explore three of the most common home heating systems—oil/gas heating, baseboard heating, and ductless mini-split heat pumps—and compare them based on installation and utility costs, and how you can optimize each system for energy efficiency and cost savings.
Let’s get started!
Table of Contents
- Oil/Gas Heating Systems
- Electric Baseboard Heating Systems
- Ductless Mini-Split Heat Pumps
- The Benefits of Smart Thermostats
1. Oil or Gas Heating Systems
Installation Costs
Oil and gas heating systems, which include furnaces and boilers, often come with moderate to high installation costs. A gas furnace can range from $2500 to $75000, while oil-based systems may cost more due to oil tank installation requirements. Additionally, homes need ductwork for forced air systems, which adds to the upfront expense.
Many governments and utility companies offer financial incentives to encourage homeowners to transition from oil or gas heating to electric HVAC systems, such as ductless mini-split heat pumps. These incentives can include tax credits, rebates, and low-interest loans to offset the upfront costs of upgrading to more energy-efficient, eco-friendly systems. By switching to electric HVAC, homeowners can reduce their energy bills and carbon footprint, while benefiting from these financial rewards, making the transition more affordable and appealing.
Utility Costs
Operational costs for oil or gas heating depend largely on fuel prices, which can be volatile. Gas tends to be more affordable than oil, and homes using natural gas typically enjoy lower monthly heating bills. Oil systems require more frequent maintenance due to soot buildup, adding to annual operational costs.
Additional costs can be incurred when oil tank remediation is necessary, due to leaks caused by aging tanks, corrosion, or improper installation, which can lead to soil and groundwater contamination. These leaks pose environmental hazards and may affect the health and safety of the surrounding area. Remediation typically involves removing the tank, cleaning contaminated soil, and addressing any environmental impacts. The average cost for homeowners can vary widely, ranging from $4,000 to a whopping $100,000 or more, depending on the extent of the contamination, local regulations, and the complexity of the cleanup process. Some financial incentive programs may cover installation costs or provide bonuses for removing old oil or gas equipment.
Smart Thermostat Compatibility
If you have an oil or gas heating system, your home may be compatible with smart thermostats like Nest or Ecobee, which allow users to schedule heating cycles, adjust temperature remotely, and use advanced features like learning algorithms. Smart thermostats can reduce energy consumption by ensuring oil or gas heating is optimized, lowering both costs and environmental impact.
2. Electric Baseboard Heating Systems
Installation Costs
Electric baseboard heaters are generally affordable to install, making them a popular choice for supplemental or zone heating. Installation costs are minimal compared to other systems, often ranging between $400 to $1,500 per room. Since no ductwork or central system is needed, this is a low-complexity installation option, but cost can vary depending on the number of rooms that require heaters. Homes that lack adequate electrical capacity may require electrical panel upgrades, which can also add to the cost.
Utility Costs
Electric baseboard heating can have higher operational costs due to fluctuating electricity rates. Since baseboards work by heating air directly in the room, they can be less effective in homes with poor insulation (consider conducting a DIY energy audit to identify efficiency issues), or high ceilings. While the lack of a central thermostat system can make optimizing energy use challenging, a major benefit of baseboard heating is that you control it room-by-room - meaning that you can use your smart controller for baseboard heaters to reduce your overall utility costs by keeping less-used rooms at lower temperatures.
Smart Control for Electric Baseboard Heaters
While many baseboard heating systems are not compatible with traditional smart thermostats, Mysa Smart Thermostats are specifically designed to replace your old, analog dial thermostats for your home’s high-voltage (also known as line voltage) electric baseboard heaters.As a WiFi-controlled smart thermostat for electric baseboards, Mysa can be controlled from your phone via an easy-to-use,100% free app (no subscription fees or gated features). That means you enjoy more convenient and precise control over your baseboard heating use, better home comfort, and the potential for significant savings on energy costs.
3. Ductless Mini-Split Heat Pumps
Installation Costs
Ductless mini-split heat pumps, which offer both heating and cooling, have a higher initial installation cost compared to baseboard heaters, and can range between $2,000 to $14,000. However, they don't require ductwork, making them a cost-effective option for homes without existing ducts. The complexity and cost of installation depends on the number of indoor units needed.
Heat pump adoption rate is increasing steadily, driven by a growing focus on energy efficiency and environmental sustainability. In recent years, government incentives, advancements in smart AC control, and rising awareness of their energy-saving potential have contributed to more homeowners opting for heat pumps, particularly in regions with milder climates and for new constructions and retrofits. The trend is expected to continue to accelerate as more consumers look for greener and cost-efficient heating solutions.
Utility Costs
Ductless mini-split heat pumps are among the most efficient heating systems. They work by transferring heat from outside to inside, rather than generating heat, making them up to 50% more efficient than traditional heating systems. This efficiency translates to lower operational costs, especially in moderate climates.The savings realized will largely depend on local electricity rates and the quality of the home’s insulation. For example, in regions where electricity is cheaper than oil or gas, the return on investment can be faster, particularly with ductless mini-splits, which can also provide cooling during warmer months. Choosing the right ductless mini-split heat pump for your home can also impact your rate of return on investment.
Smart Control for Mini-Split Heat Pumps
Many ductless mini-split heat pumps can be controlled via smart thermostats or integrated apps. The Mysa Smart Thermostat for Mini-Split Heat Pumps & AC delivers many benefits to homeowners, including the ability to manage your home’s heating remotely through an app. With remote access, you can adjust the temperature from anywhere, ensuring your home is warm when you need it, without wasting energy when you're away. Custom heating schedules allow you to set specific times for the system to operate, optimizing comfort while reducing unnecessary usage when the house is empty, or during peak use hours when electricity costs are higher.
In addition to convenience, smart control for heat pumps boosts energy efficiency by allowing more precise temperature management. By paying for heating only when it's needed, homeowners can save significantly over time, while enjoying consistent comfort tailored to their daily routine. The combination of better control, comfort, and savings makes adding a smart thermostat for heat pumps a valuable upgrade for most ductless mini-split systems.
4. The Benefits of Smart Thermostats
App-Based Heating Control
By adding the convenience of app-based control, homeowners can adjust their heating systems and monitor humidity levels remotely. Whether you're away from home or simply in another room, the ability to control your heating from your smartphone ensures that your home is always at the right temperature. This flexibility helps to prevent wasted energy by allowing you to turn the heat down when it's not needed - or pre-warm your space before you arrive home from a cold, snowy commute!
Improved Cost Savings
In terms of energy cost savings, smart thermostats for electric baseboard heaters or heat pumps can significantly improve your home’s efficiency. By allowing you to create customized heating schedules, smart controllers for home heating ensure that energy is only used when necessary. Other smart features, like Geofencing, can help you further reduce unnecessary heating use and help you save on your monthly utility bills. Over time, this precise control over your heating system can lead to noticeable reductions in energy consumption and costs.
Better Home Comfort
When it comes to home comfort, smart controls make it easy to maintain the perfect indoor climate. You can program specific temperatures for different rooms or zones, ensuring personalized comfort for everyone in the household. Remote control for baseboard heaters or mini-split heat pumps also keep your home cozy with a quick tap on your phone - no more getting up at night to get the perfect sleeping temperature. Whether you prefer a smart thermostat with a streamlined feature set, or one loaded with premium energy-saving features, the improved control and automation delivered by smart thermostats can help create a more comfortable environment tailored to your unique needs and routines.
Utility Rebates & Demand Response Programs
A growing number of electrical utility providers are offering rebates on smart thermostats, which can significantly offset the cost of upgrading your heating system. Additionally, eligible homeowners with electric-based heating systems, such as baseboard heaters or mini-splits, can participate in Demand Response (DR) programs. By choosing to enroll their smart thermostats in these innovative energy-management programs, homeowners can actively help to stabilize the energy grid while taking advantage of financial incentive programs and rewards from their utility provider.
Summary
Choosing the right heating system for your home involves balancing installation costs, operational efficiency, and long-term savings. Oil and gas systems offer reliable heat but can have volatile fuel costs. Electric baseboard heaters are easy to install but often expensive to operate. Ductless mini-split heat pumps, though more expensive upfront, offer significant energy savings and year-round comfort. Regardless of the system you choose, smart thermostats can help reduce energy consumption, optimize home comfort, and lower your bills. By taking advantage of utility rebates and Demand Response programs, smart thermostat users can save even more on their home energy costs.
Ready to see what energy-saving Mysa Smart Thermostats could work with your home’s heating system? Spoiler alert - there may be more than one Mysa that’s perfect for you! Check your compatibility now.