Which Type of Heater is Cheapest to Run

Which Type of Heater Is Cheapest to Run?

Written by Go Green Heating & Air Conditioning
Last updated: October 2025
Reading time: 5 minutes

As winter settles over Arvada, homeowners share the same goal: cozy warmth without sky-high energy bills. Luckily, with years of local experience, Go Green Heating & Air Conditioning is here to help you compare energy-efficient heating systems and find the best fit for your home and budget.

Key Factors That Affect Heating Costs

Several factors determine how affordable (or expensive) your heat will be each month:

  • Energy source: Electricity, natural gas, and oil all come with different costs per unit.
  • System efficiency: Some systems use energy more effectively than others.
  • Home insulation and sealing: Heat loss through walls, windows, or ducts forces any system to work harder.
  • Thermostat settings and zoning: Running heat in unused spaces is a waste of energy.

Finding a Cheap Heater: What You Need to Know

Before diving deeper into specific systems, let’s consider four key factors that influence the cost of buying and running your home heater.

Energy Use

Heaters rely on energy to heat up the home, and that energy has a cost associated with it. The price of heating up a home will be directly correlated to the amount of energy that your heater uses. For this reason, choosing high-efficiency and eco-friendly heaters is an excellent way to cut down on monthly costs. Although these heaters can cost more upfront, they will run for a lower price than some of the cheaper alternatives.

Upgrades

Home heating is constantly improving, and heaters are starting to offer more and more to homeowners. The price of your heater can vary depending on the system that you use. Systems with more upgrades, like WiFi connections and touchscreens, can often come at a higher price straight out of the gate. Depending on the features you choose, the monthly operating cost may vary.

Level of Support

Some heaters cost more to operate because they offer a higher level of support or cover a more expansive space. Since these systems tend to produce more and work harder, they also cost more to operate. However, this can differ if you are not operating them in a way that necessarily uses more energy.

Choosing the Cheapest Option

In the modern world, other than individual room heaters, eco-friendly heaters will be your best price option. These versions will be able to do more with less, but prices can vary. If you can spend more in advance to save on the operating cost later, it will be best to do so.

Common Heater Types

Heat Pumps

Modern cold-climate heat pumps are designed to work well even when temperatures drop. Instead of generating heat, they transfer it, which often leads to noticeably lower utility bills. For many households, a heat pump is the cheapest heater to run, particularly when paired with strong insulation and smart controls.

Gas Furnaces

A high-efficiency gas furnace can be a smart option for Arvada’s cold climate. When natural gas prices are stable, furnaces provide consistent heat throughout larger homes without excessive monthly costs. They’re also a popular choice for homeowners who want strong performance during long winter nights.

Electric Heaters

Electric baseboard heaters and similar systems are inexpensive to install but can become expensive to operate over time. Electricity typically costs more per unit of heat than gas, which means monthly bills can rise quickly if you rely on electric resistance heating full-time. These systems work best for low cost heating needs in small rooms or as a backup.

Heater Type Key Advantages Best For
Heat Pump Highly efficient; provides heating and cooling; can reduce operating costs Most homes, especially when paired with good insulation
High-Efficiency Gas Furnace Strong performance in cold weather; steady operating costs if gas prices are favorable Larger homes, extended heating seasons
Electric Resistance / Baseboard Low upfront cost; easy installation Small spaces, supplemental or occasional use
Oil Furnace Powerful heating in very cold conditions Homes without access to natural gas

What’s the Most Cost-Efficient Heater to Run?

  • Heat pumps often deliver the lowest overall operating costs, thanks to their efficiency.
  • Gas furnaces compete closely, especially in larger homes or during extended cold periods.
  • Electric resistance heaters are typically the most expensive to operate in the long term.
  • Hybrid systems (heat pump with a gas backup) can provide flexibility and savings in Colorado’s mixed climate.

If you’d like more details on system types and cost-saving strategies, explore our article on energy-efficient heating tips for additional guidance.

FAQs

Is it ever worth using electric heaters?

Sometimes, yes. Electric heaters are handy for heating a small room, warming up a chilly basement, or using them as a backup when your main system needs a break. However, for heating the whole house, especially during long winters, they tend to incur high energy costs.

Should I upgrade insulation before changing my heating system?

Definitely, adding insulation makes a bigger difference than most people expect. A well-insulated home keeps the heat in better, so your system doesn’t have to work as hard. It might even mean you can buy a smaller (and less expensive) heater.

Contact an HVAC Professional

Every home is different, and the heater that keeps one family warm for less might not be the right fit for yours. Things like insulation, energy prices, and how you actually use your system all play a role. 

At Go Green Heating & Air Conditioning, we’ll take a look at your home, talk through your options in a way that makes sense, and help you land on the system that keeps you warm without driving up your bills. Ready to get started? Reach out here or give us a quick call to set up a consultation. 

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