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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.
1 Click here for information on Efficiency Maineâs incentives and home energy loans for heating system upgrades. 2  It typically costs $1.22 in weatherization to save a gallon of heating oil so be sure to consider weatherization if you are trying to reduce your heating costs.his home heating cost comparison tool can help you estimate what your annual heating costs would be using different heating systems. Look for the row that best describes your current heating system then press the Increase or Decrease buttons until the Annual Cost approximates yours.