There are several technology upgrades that can reduce heating costs by either reducing the amount of heat a home needs or improving the efficiency of the heating system. In general, it is best to reduce heating demand first before upgrading to a new heating system. A home that loses less heat can often be kept warm with a smaller, less expensive, and more efficient heating system.
Improving the home's building envelope, the physical barrier separating the heated interior from the outdoors, is often the best place to start. Adding insulation to attics, walls, and floors slows the amount of heat that escapes through the home's surfaces. Air sealing closes the gaps and cracks around windows, doors, outlets, attic hatches, and other openings that let warm air out and cold air in.
Energy-efficient windows, weatherstripping, and door sweeps can further reduce drafts and heat loss. Together, these improvements help the home hold onto heat longer, so the heating system runs less often.
Replacing an older or inefficient heating system with an electric heat pump can significantly reduce the energy required to heat a home. Because heat pumps move heat rather than create it, they can deliver about three units of heat for every unit of electricity they use. Heat pumps also provide cooling in the summer, allowing one system to replace both a heating system and an air conditioner.
When purchasing a new heat pump, it's important to choose a model with strong energy-efficiency ratings and certifications used in your region. In the US, Energy Star certified heat pumps meet strict efficiency requirements. Heat pump heating efficiency is commonly rated using the Heating Seasonal Performance Factor 2 (HSPF2). The higher the HSPF2 rating, the more efficiently the system provides heat.
For homes in regions with very cold winters, cold-climate heat pumps are the best choice. These models are specifically designed to keep heating efficiently at temperatures well below freezing.
Proper sizing is also important. An oversized heat pump can turn on and off too frequently, reducing efficiency and comfort, while an undersized heat pump may struggle to keep the home warm and rely more heavily on its backup heat. An HVAC professional should calculate the home's heating and cooling needs using an industry-standard load calculation before selecting new equipment. Completing building envelope improvements first can often allow for a smaller heat pump.
Homes that rely on electric baseboard heaters, wall heaters, or space heaters can often see some of the largest savings from upgrading to a heat pump. Because heat pumps deliver about three times as much heat per unit of electricity, replacing electric resistance heating with a heat pump can cut heating costs by about two-thirds.
Ductless mini-split heat pumps are a particularly good fit for these homes. Because they do not require ductwork, they can be installed without major renovations, with indoor units mounted in the rooms that need heat.
Homes with central heating systems can lose a significant amount of heat through leaky or poorly insulated ductwork. Sealing duct leaks and insulating ducts, particularly those located in unheated spaces such as attics, garages, and crawl spaces, helps more of the heated air reach the rooms it is intended to warm.
Zoning can further reduce heating demand by dividing a home into areas that can be controlled independently. For example, a two-story home might have a separate thermostat for each floor, allowing the heating system to keep occupied areas warm while reducing heat to unused spaces. Ductless mini-split systems provide similar zoning benefits, since each indoor unit can independently control the temperature of the room it serves.