Cheapest Way To Heat A Home [Small & Large]

Did you know, according to home experts, that heating your home accounts for around 42% of your electric bill?

Heating a home is a necessity for many people during the colder months of the year, so homeowners willingly pay their electric bill, even if the amount is high because they want to be comfortable in their own homes.

However, there are many options for homeowners that can lower the price of their heating bill. 

Some options for heating a home are initially more expensive to buy and have installed, but leading experts from ENERGY STAR claim that switching to certain types of heaters will dramatically decrease your electric bill every month. 

The cheapest way to heat a house with electricity involves using energy-efficient methods and devices. One effective approach is to install a programmable thermostat, which allows you to set specific temperatures for different times of the day, reducing energy use when heating is not needed. Utilizing space heaters in commonly used rooms instead of heating the entire house can also be more cost-effective. Additionally, improving home insulation and sealing any drafts will help retain heat, reducing the overall demand on electric heating systems and lowering energy costs.

Heating Your Small/Tiny Home

Small or tiny homes are quickly becoming a new fad amongst people who are eco-friendly.

These houses are typically one bedroom, one bathroom, and a kitchen. Some of the tiny homes are on wheels so that they can be moved from place to place.

Because of this mobility, these homes need to have several options for heating. 

If there is access to an electrical outlet, using a portable space heater would work efficiently as a heat source for a small or tiny house.

If the home has two separate bedrooms, then there may need to be several space heaters that are used. Some tiny and small homes use wood, oil, and gas to heat their homes.

This may seem like a primitive way to heat a home, but since these homes are so small, they don’t need a large heat source. Fuel for these types of heaters is relatively easy to find.

My recommendation for smaller homes, apartments, one-bedroom heating or home office heating is to buy the Kismile 1500W oil-filled radiator.

When I was younger, our heater went out in our home. My parents couldn’t afford to fix it, so we heated our home with a fireplace and several of these radiator heaters. 

Small House

They come in two colors, have several heat settings, and have overheat and tip-over protection.

I know from personal experience that they do generate a large amount of heat and can easily heat a smaller bedroom, office, or small home.

Fuel Burning Stoves

Name of StoveType of FuelRating on Amazon
Fltom Camp Tent StoveWood4.1 out of 5


(604 ratings)

Mr. Heater Natural Gas Heater (1000 sq, footheat range)Gas4.7 out of 5


(438 ratings)

Kismile 1500W oil filled radiatorOil4.3 out of 5


(274 ratings)

Heating Your Medium To Large Home

For some homeowners, furnaces are the choice heating device. There are several types of furnaces that can be used to heat a home, and each come with their own set of pros and cons. 

Types of Furnaces

Type of FurnaceProsConsUnit Cost *Installation Cost *
Natural gas furnaceReliability and low noise levelUses gas to produce heat, so it’s not as environmentally friendly. $700-$6,200 $1,000-$3,500
Electric FurnaceKnown for efficiencyOperating costs are more expensive than others$600-$2,700 $1,000-$3,500
Oil Furnace-Known for efficiency.


-Affordable to run.

-Burns oil to produce heat.


-Fuel must be replenished often


*Prices vary depending on the size of the home. 

Depending on the size of the home, a unit for each of these types of furnaces can be purchased for a cheaper amount of money than other types of heaters.

Using an electric furnace will be more expensive overall due to the fact that it uses electricity. This will cause the electric bill to increase. 

If you are looking for the cheapest way to heat your home with a furnace, right now, natural gas or oil furnaces are the way to go

Their units may be a little pricey, with the oil furnace definitely being the cheaper option, but if you think of it as an investment, then all of the up-front prices are worth it.

This is a good option for those who don’t want to front the money for a heat pump. Furnaces are not a good option for heating a mobile home or a small house.

Generally speaking, mobile homes are not large enough to install the furnace unit inside. Furnace units are typically for medium to large sized houses.

What Are Some cheap Heating Alternatives? 

There are several ways you can heat your home on a budget. Solar panels are extremely popular and are a great way to heat your home.

The upfront costs are more than starting up with an electric company, but the long-term savings outweigh the purchase costs.

Not only that, but some people actually get paid by their electric company because their solar panels are creating ‘too much’ electricity. So you can actually make money by investing in solar panels.

What About Smart Thermostats? 

Smart thermostats are a great way to efficiently heat your home. They regularly adjust the temperature of your home to match the temperature setting, rather than blasting your home with heat or air without considering the current temperature.

This prevents excess heating and cooling, and stops you from paying for electricity you don’t need. 

Bundle up

It seems silly, but turning down your thermostat and bundling up is also an effective way to stay warm!

Rather than cranking up the heat, and essentially cranking up your monthly bill, keep your thermostat at a consistent temperature and wear warm clothes, like sweaters, socks, or blankets to stay warm without having to constantly adjust the temperature. 

Danger Of Depleting Earth’s Non-Renewable Resources 

Natural gas and oil are both fossil fuels and non-renewable energy sources. This means that once the Earth runs out of these fuels, there will not be more produced. Homeowners looking to go green have the option to install solar panels. 

Homeowners with solar panels need to have a backup option for heat in case the Sun isn’t available to shine for a few days.  

How To Heat Your Home Office

Today, more than ever, people are working remotely. Many sheds, spare bedrooms, and garages have been converted into home offices.

While working in a home office, click the main thermostat a few degrees cooler, close the office door, place a towel under the door crack to keep cool air from flowing into the office, and turn on your space heater.   

Home Office

Be sure to purchase an energy-efficient space heater with a thermostat. This will allow it to cut on and off at designated times instead of running constantly.

This will allow you to save on your power bill, generate less energy, and be warm at the same time.

Space Heaters

Name WattageProsRating on Amazon
Pelonis corded electric heater1500W-Heats quickly





-Easy to move

4.5 stars


(4,592 ratings)

Give Best corded electric ceramic heater1500W/750W-Auto off when tilted


-Overheat protection



-Carry handle

4.5 stars


(43.264 ratings)

Dr. Infrared portable space heater1500W-High and low feature


-Dual heating systems

-12 hour auto shut off

-Electronic thermostat

4.5 stars


(14,852 ratings)


Heating Your Mobile Home

While mobile homes are used as housing for many residents, they are not insulated as well as they should be. There are several ways to keep a mobile home from losing heat. 

Mobile homeowners should be sure to check the insulation around their homes. Look under the mobile home if it is raised off the ground and be sure that it is properly insulated under the trailer. 

This will keep heat from escaping through the floorboards. Windows in mobile homes should also be upgraded. Older windows will allow heat to slowly seep out. Last, heating units should be inspected yearly. 

Be sure to keep the heater serviced by a professional, and take the time to ask what can be done on a weekly or bi-weekly basis to be sure that the heater is being given the best care, so that it can properly heat the home in a cost-effective way.

What Is The Cheapest Way To Heat Your Home In Winter?

The best option for heating a mobile home, mid-size home, and large home is to install a heat pump.

Heat pumps are different from other heaters because they do not generate heat, but they take cool air from the room and pump it outside.

During the warmer months, they can also pull heat from in the house and pump it outdoors as well. 

The fact that these pumps can be used for heating and cooling makes them a versatile choice for mobile homeowners who are considering converting their current means of heating into their homes. 

While heat pumps are generally more expensive to buy and have installed, they are the most cost-effective way to heat a home.

The price cut from an electric bill over a long period of time will prove that this is an investment. 

Heat pumps reduce electricity usage for heating by 50% compared to other electric heaters, according to

They also are better at removing the humidity from a room than a central air conditioner and heater unit.

Types Of Heat Pumps

Unit TypeUnit CostInstallation CostDescriptionType of home
Air-Source heat pump$2,000-5,000$1,300-2,000-More affordable option if ductwork is already installed in home.-Small/tiny






-Mobile home that will not be moved

Ductless mini-split heat pump$1,000-3,500$500-1500-Smaller unit is connected to the outdoor unit.


-Ideal for homes with a lower square footage.

-No ductwork is needed.







-Mobile home that will not be moved

Geothermal heat pumps$1,500-2,000 per ton


*price is determined by size of house

-A 2,000 Sq. Ft. home requires 5 ton heat pump



Depending on the size of the house. Remember this is an investment.

-Draw heat from ground or water.


-Cost more to install

-Reduce energy 30%-60%

-Low operating cost







-Mobile home that will not be moved

Mobile homes, smaller houses, and larger houses can use any of the types of heat pumps listed above, but once the heat pump is installed, it cannot be moved.

If someone in a mobile home decides to move, they cannot take their heating system with them. 

Insulating Your Home

Some houses, especially houses that are older, do not have proper insulation. This can cause a loss of heat from your home.

If the windows in the home need to be updated, then take care of that as soon as possible.

Windows that aren’t updated can allow heat to be moved out of cracks and crevices. If your home has an attic, it is best to be sure it is properly insulated.

Insulation keeps the hot air out during the summer and keeps the hot air in during the winter.

Improper insulation in the attic, walls, and under your home (if it’s off the ground) can cause the home to lose a large portion of its heat through the attic and floors.

Insulation can be installed for a price, but the price is an investment because it will save you money on your electric bill. 

Solar Panels For Any Size Home

Solar panels are one of those long-term investments that I talked about earlier.

Solar panels are pricey to purchase and install, but they can reap long-term benefits. Prices for purchase and installation vary from $15,000 to $45,000. 

Solar power is better for the environment because there are no harmful pollutants released when generating energy from the Sun.

When solar panels produce too much energy for the home, the energy can be sold back to the electric company, which brings a profit for the homeowner. 

Solar Panels being Installed

Remember that solar panels can be used on any size of home. Homeowners can also file for a large tax deduction after having these installed.

Smart Thermostats

One final thing that all homeowners can buy to help decrease their electric bill and contribute to heating their home cheaply is a smart thermostat.

Smart thermostats can be programmed around the homeowners schedule. The customization of the thermostat to coincide with the homeowner’s schedule can cut back on energy usage. 

The thermostat can turn the heat on or off depending on whether the homeowner is at home or away from the house.

Smart thermostats give the operator more control over when the heat will turn on and off. See the table below for Amazon’s top picks for smart thermostats. 

Energy STAR is a government program that estimates that a person can save $180 a year by switching to a smart thermostat.

NamePriceProsStars on Amazon
Google Nest Learning thermostat (3rd gen.)$199.00-



*price depends on color

-Can be paired with Alexa


-Eco temperature for when the homeowner is away.

-Can change temperature from tablet, phone, laptop.

4.5 stars


(32,251 ratings)

Honeywell Wireless WiFi thermostat$249.99-Can be paired with Alexa


-7 programmable preset options

-Energy saving mode

-Five-year limited warranty

4.4 stars


(4,009 ratings)

Emerson Sensi WiFi Smart thermostat$129.99-ENERGY STAR certified


-Smart home compatible

-Usage reports

-Control from tablet, phone or laptop via app.

-Smart alerts 


4.6 stars


(15,017 ratings)

Final Words

All of these options are recommended by experts, and the units that were mentioned are some of the top units on Amazon with many positive reviews. 

Heating a home can be a worry for some homeowners, but with so many options, it shouldn’t be. Choosing a heater that is right for your home and family is important.

Overall, heat pumps are the way to go for families that own immobile mobile homes, medium and large homes.

They are more expensive to install, but the savings over a long course of time are worth it. 


For homeowners with tiny to small houses or those who just want to heat one room or a home office, oil filled radiators and space heaters are great ways to keep those small spaces warm throughout the cold winter.

These are all cheaper options for homeowners and should help to lower their electrical bill.

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