COMPARING HEATING COSTS
Members frequently ask for my opinion on what heating system costs the least to operate. My answer is pretty much always the same. “It depends.”
Every fuel type is priced differently. Every fuel type is measured in different units – e.g. kilowatt hours, gallons, CCF’s, and so on. And to further complicate matters, the heating system for each type of fuel have wide ranging differences in efficiencies.
So to move beyond “it depends” to something tangible, I use the conversion model shown below. This model converts all energy types into a common denominator Btu’s (British thermal units). The model then determines the amount of energy required from each fuel type to generate 100,000 Btu’s. A Btu is a unit of heat and is the key measurement used to calculate the heating requirements for a home.
For each fuel type shown in the model, I simply note the efficiency factor for the heating system and enter the current market price for that fuel. For example, if a typical propane furnace is 85 percent efficient and the current market price for propane is $2.85/gallon, the model tells me it costs $3.66 to generate 100,000 Btu’s of heating.
Each line item in the model represents a different fuel type, and once I have input the heating system efficiency and the current market price for those fuels, I can make meaningful comparisons and move beyond “it depends.”
If you are looking at new heat sources and not sure which way to go, like me you can use this model. Visit our website at http://www.cherrylandelectric.com/eo and key in your own data. Or if you prefer contact me and I can help you with the calculations.
Keep in mind that without proper insulation, all types of heating are expensive!
Bill Garey is Cherryland’s energy advisor, with 32 years of experience.
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