In NH, we rely on five primary fuels to heat our homes: natural gas, fuel oil, propane, wood and electricity. We use furnaces, boilers, heat pumps, wood stoves, pellet stoves and electric baseboard to convert these fuels into heat. In a quest to lower yearly heating costs, homeowners are seeking higher efficiency equipment. Unfortunately, more efficient equipment does not always equate to a lower yearly heating cost. Fuel type is a major factor that is often over looked. For instance, oil and propane are roughly the same price per gallon, so one would think a 98% efficient propane furnace would be cheaper to operate than an old 80% efficient oil furnace. The reality is that oil produces more BTUs of heat per gallon than propane so the oil furnace is more efficient to operate in today’s economy. Should the price of oil rise or propane fall, the math might work out differently. NH’s Office of Energy and Planning posts the price per Million BTU weekly for those who are interested in converting.