How to Combat High Home Heating Costs

High gas prices and inflated food costs are already putting the squeeze on homeowners. Now, with a long, cold winter fast approaching, they're concerned about keeping warm.

Heating oil and natural gas prices are expected to hit record levels this winter. Learning ways to cut heating and household costs can help you heat your home affordably this winter.

A Pricey Winter Ahead

In some areas, home heating oil and propane costs have doubled in the past two years. This winter, the Energy Information Administration (EIA) projects natural gas and heating oil prices will reach record highs. The average U.S. household is projected to spend $1,152 to heat their home, a 17% increase from a year ago.

The EIA's average winter heating costs and amount of increase, for households heating with:

  • Heating oil - $2,524 per household, 30% increase, a record high
  • Natural gas - $1,017 per household, 19% increase, a record high
  • Propane - $1,890 per household, 13% increase
  • Electricity - $944 per household, 10% increase

Why Are Heating Costs Rising?

The spike in crude oil prices is to blame for high heating costs. Crude oil prices directly affect the price of home heating oil, and have an indirect effect on the price of natural gas. As most vehicle owners already know, crude oil prices hit record highs in 2008, with prices soaring well over $140 a barrel. Concerns that the supply of oil won't be able to keep up with demand this winter is driving heating oil prices even higher.

Energy Tax Credits

Replacing your furnace, water heater or boiler with new energy-efficient units can land you savings on your tax return. The EIA recommends using Energy Star products, which are designed to use up to 50% less energy than standard appliances.

Here are some tax credits you may receive for investing in energy-efficient appliances:

  • Furnace/boiler: $150
  • Insulation: $500
  • Water Heater: $300
  • Storm Windows: $200
  • Storm Doors: $500

Source: EnergyStar.org

Tips to Keep Heating Costs Low

  • A programmable thermostat can save you hundreds on home heating costs. You can set your home's heating system to run on a timer, keeping it warmer when you're home and cooler when you aren't.
  • Having a professional contractor conduct an "energy audit" on your home is a great way to discover cost-cutting measures. It involves a room-by-room assessment of your energy use and overall review of your energy costs. Your gas or electric company may even send a local contractor to your home to conduct this audit free of charge.
  • Check with your fuel company to see if they offer price caps. If you "lock in" your price before the dead of winter, you'll avoid paying inflated costs when demand is high.

Struggling With Heating Costs? Save on Homeowners Insurance!

A great way to keep some extra money in your account is to shop around for a more affordable homeowners insurance policy. InsWeb.com can help you shop and compare homeowners insurance quotes from top companies!