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However, heating a home with a geothermal heat pump or a cold climate heat pump would be less expensive than using oil.At $4.67 a gallon for oil, it would cost the same to produce the same amount of heat using oil or electric baseboard heat.or example, a home that uses 800 gallons of oil for heating would use about 25,300 kilowatt-hours to produce the same amount of heat. Visit www.cmpco.com for a link to a more detailed spreadsheet from the Department of Energy to compare heating costs.
At the forefront of this new shift in home heating is propane gas. Energy Efficiency & Cost Savings Oil furnaces typically produce heat at about 60% efficiency, meaning that for every dollar you spend on heating oil, youâll only get about 60 cents worth of heat.ropane gas furnaces, on the other hand, are much more efficient, with ratings typically 90% or above. Insurance and Liability Do you have an older home with an oil tank? Many insurance companies place strict rules on how old oil tanks and furnaces must be in order to be covered by your household insurance policy.