Oil-fired heating carried an estimated monthly running cost of €225 ($252) in a Cyprus comparison by Politis, versus €99 ($111) for a heat pump. That gap represents substantial potential savings for households trying to keep warm on a tight budget.

Here's what to know

Politis based the comparison on a winter month's demand of 1,200 kilowatt-hours of useful heat. The modeled home had average insulation and covered 1,076 square feet, with an indoor temperature maintained at 68 to 70 degrees Fahrenheit.

At €396 ($443) a month, electric resistance heaters — including fan heaters and oil-filled radiators — were the costliest option. LPG came in at €208 ($233), while inverter air conditioners ranked second-cheapest at €120 ($134).

Air conditioners in every room are a prerequisite for the whole-home estimate. For the heat pump, the cost calculation excludes installation and assumes four units of heat output for each unit of electricity consumed.

Upgrading heating and cooling is one of the best ways to save on utility bills and protect against rising energy prices. Palmetto helps homeowners understand newer, more efficient HVAC and heat pump options; its Comfort Plan network helps identify efficient home solutions and connects homeowners with vetted installers.

More background

Oil heating's monthly bill climbed about 61%, from €140 to €225 ($157 to $252), with fuel consumption unchanged. The heat pump's bill moved from €84 to €99 ($94 to $111) at the electricity prices used in the analysis.

A low-cost electric heater, on the other hand, can still make sense for briefly warming a single room.

According to Politis, purchasing 44 cubic feet of olive wood costs €249 ($279), an increase of 42%. But without knowing the wood's weight, moisture, and energy yield, as well as the fireplace's efficiency, that purchase cannot be equated with the heating demand used in the analysis.

What can be done?

Cyprus Energy Agency director Savvas Vlachos, cited by Politis, recommended checking air conditioners' seasonal coefficient of performance (SCOP). A 4.3 rating indicates seasonal heat output equivalent to 4.3 times the electricity used.

For households with both oil heating and modern air conditioners, he suggested relying more on the air conditioners in rooms used daily.

For homeowners not ready to spend up front, Palmetto's Comfort Plan includes $0-down options that can lower heating and cooling costs by up to 50%. Palmetto Comfort Plans also include 12 years of free maintenance.

Homeowners can also pair solar panels with electric appliances, including efficient HVACs, to drive utility costs even lower. EasyHome makes it easy to compare solar options and find the best solar system and installer for their home and budget.

For households that burn wood, Vlachos also emphasized fireplace efficiency. An open fireplace is just 20% to 25% efficient, whereas an enclosed, energy-efficient insert can achieve efficiencies above 70% to 80%. Pellet stoves can approach 90%.

Where can I learn more?

Households outside Cyprus face similar choices about whether replacing oil or gas heating will pay off. These stories follow homeowners weighing replacement costs, comparing quotes, and considering potential savings from switching.

• In Massachusetts, a homeowner's 50-year-old boiler dies, and heat pumps may still beat oil.

• A Connecticut homeowner uses AI to compare heat pump quotes as oil reaches $5.

• A Northeast homeowner's $4,000 oil tank quote prompts commenters to suggest dual-fuel heating.

• In the UK, diverging energy price increases strengthen the financial case for heat pumps.

• German homeowners could save over $14,000 by ditching gas, even when financing the switch.

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