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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.
If oil costs $2.75 per gallon, the price per million BTU (British Thermal Units, the standard measure of heat in the US) would be $28.06. To get the same amount of heat, 1 million BTU, from a heat pump with the current standard electric rate of 14.5 cents per kilowatt hour, it would cost you $14.71. In other words, heating your home with a heat pump is equivalent heating your home with oil for $1.44 per gallon, or for 48% less.