Today's energy conscious homeowner spends thousands of dollars in home efficiency upgrades by installing new windows and doors, adding additional insulation, and even upgrading existing gas/oil furnaces only to find out the savings is consumed by the never ending gas/oil price increases. Although upgrading the above items will have a long-term cost savings, why not look at the potential of using electric heat as your preferred energy source and eliminate the potential of 50-100% gas/oil price increases.

Electric heat is efficient. 100% of the energy that is put into the heater is converted to heat; there are no wasteful by-products that fossil fuel furnaces experience. In many areas electricity for home heating is offered at very competitive rates as compared to fuel oil, natural gas, or propane. For a more accurate estimate of the potential savings, use one of our online energy calculators. Unlike the economically driven fossil fuel heating market that has seen an almost 200% price increase in the last 6 years, electric rates have increased a mere 25% over the same time period*. These stable prices give the homeowner peace of mind knowing the price they pay for their electric heat will be very similar from month to month, unlike the typical fossil fuel roller coaster rates.

While it is impossible to know the exact future of fossil fuel prices, most experts agree that price stability is uncertain at best and similar steep increases in price are not beyond possibility. Historical trends in electric costs for the majority of the country have been small percentage increases. Most experts agree this trend will continue. As we look to the future and the demand for alternative energy sources continues to increase, it is a safe bet that with the infrastructure and technology that is in place, most new sources will be converted to electric energy.

 

By adding electric heat to my home, will it generate even more strain to our power plants? Actually, the opposite is true. Electric heat loads are generally very predictable. Many electric utilities consider this a base load by which they can accurately predict how much power they need to have available month by month. This allows them to purchase power at a lower rate prior to a heating season. During the heating months, if demand exceeds their predicted capacity, many electric utilities can turn the electric heat off allowing fossil fuel back-up heat to operate during the control period.

These types of off-peak or time-of-use programs have many benefits. Affordable and reliable heat source for homeowners and a predictable base load for electric utilities (allowing them to pre-buy power at a reduced rate) which, in turn, helps electric wholesalers redistribute power to other areas of the country.

* Information gathered from the Energy Information Administration.