When it comes to the cost of heating your home, oil is generally the most expensive option. The cost of heating oil varies depending on where you live and the size of your home, this November one of our employees paid $2.27 per liter not including HST. The good news is that there are a few ways to save money when using oil heat. First, make sure you’re buying in bulk when possible, as this can help reduce your overall costs. Additionally, insulating your home properly can help keep the heat in, so you won’t have to use as much of it.
Save Money on Your Home Heating Bills
Propane is another popular choice for home heating, and this November one of our customers paid $0.86 per liter not including HST. To save money with propane as your heating source, make sure to find a reliable supplier with good prices. The cost of delivery is usually included in the price you pay for propane, so be sure to factor that into your budgeting. Additionally, investing in a programmable thermostat can help keep costs down by automatically adjusting the temperature when you’re away from home or asleep.
There’s no doubt that the current Canadian Liberal federal government wants Canadians to move away from fossil fuel heating as they are increasing the cost to heat homes that utilize oil, propane, and natural gas. With the current carbon tax, Canadians are paying in excess an additional 12% to heat their homes. This is scheduled to increase annually with the current projection being a 340% increase by 2030.
If your home is heated by electricity, it’s important to understand how different types of electric heaters can affect your energy bills. This November, the cost of electrical heating was $0.153 per kilowatt hour (kWh) (not including HST, based on my own electrical bill). If you have an air-source heat pump in place, however, its efficiency can help lower these costs significantly. The cost of energy-efficient electric heaters is typically higher than that of gas or propane, but they can help you save money in the long run.
Air-source heat pumps are an excellent way to reduce your heating bills. Daikin Fit heat pumps have a COP of 3.7 at 7.2 degrees Celsius and a COP of 2.65 at -6.7 Celsius. COP is the acronym for Coefficient Of Performance. For example, a COP of 3.7 would equate to 1kW of energy consumption with an output of 3.7kW of heat. Another way to view this is that a COP of 3.7 is 370% efficient.
At the time of writing this, the cost to install a Daikin Fit heat pump system is approximately $15,000. Currently, when we combine manufacturing and government rebates, the cost is reduced to approximately half.
As a recap, here are the cost breakdown including carbon taxes but excluding HST.
$1 of heating oil ($2.27 per liter) = 16,079 BTU
$1 propane ($0.86 per liter) = 27,558 BTU
$1 electricity (electric furnace) = 19,386 BTU
$1 electricity (heat pump @ -7 Celsius outdoor temp) = 48,465 BTU
$1 electricity (heat pump @ +7 Celsius outdoor temp) = 69,789 BTU
$1 natural gas = 53,566 BTU
These figures do not consider the efficiency of fossil fuel heating systems. For example, if a customer has an 80% efficient oil furnace, the BTU output for $1 of heating oil is 12,863 BTU.
For a 96% efficient natural gas furnace, the BTU output for $1 of natural gas is 51,423 BTU
By understanding the cost of different heating sources and investing in energy-saving measures like a programmable thermostat or improved insulation, you can take control of your heating bills. The cost of heating oil, propane, and other fuels can add up quickly during the winter months. Researching alternative energy sources and comparing prices from several suppliers can help you find ways to save on your home heating costs.
Save Money on Your Home Heating Bills
Additionally, replacing old or inefficient heaters with modern models can significantly reduce your energy usage and lower monthly bills. It’s important to properly maintain all heating equipment to ensure it operates efficiently and safely season after season. Follow the instructions in your owner’s manual to keep any furnace, boiler, water heater, or other appliance running effectively year-round.
Finally, taking steps to improve your home’s insulation—such as caulking around windows and doors, installing weather stripping on exterior doors, and using heavy curtains for extra insulation—can help you save money on your heating costs. Sealing gaps and cracks will keep warm air inside during cold months and cool air in during hot ones, reducing the amount of energy needed to maintain a comfortable temperature indoors.
By being proactive about managing your home heating expenses, you’ll be able to stay warm while saving money this winter