
You can choose from among several energy sources. Prices vary widely according to the type of furnace and the installation.

Gas is currently the most common heating fuel. Most new central-heating systems use gas, the focus of this report.

These venerable models still retain a niche in older homes, mostly in the Northeast.

Heat pumps that wring heat from outdoor air (and reverse the process in summer to act as an air conditioner) are inexpensive to install as an alternative to a cooling-only air-conditioning system. That makes them the preferred way to heat in the South and Southwest, where winters are typically short and mild. Heat pumps that wring heat from the ground are much more expensive to install, but they are suitable for cold climates because they can maintain their operating efficiency. Other inexpensive electric-heat options include strip heaters, which are installed in the ductwork of central air conditioning, and permanently installed baseboard units in each room. But before you consider any type of electric central heating in colder regions, keep in mind that electricity rates are much higher than those for natural gas and are likely to remain that way for the foreseeable future. You can get rate information for various fuels from local utilities and suppliers.