Electric Heat

• Electric heat is clean and quiet, since there is no furnace making noises. However, as of 2010, it is getting more expensive all the time. Many regions are introducing time of use pricing, which means that power costs more at certain times of the day. Relying exclusively on electric heat could be very expensive under this system.
  
  

Oil Heat

• Oil heat is slightly less expensive than electric heat, but some people notice an oil smell in their homes with this type of heat. Also, older oil furnaces can leak, which can leave a disastrous mess in the home. It can be difficult to get house insurance for a home with an oil furnace.
  
  

Increasing Heat Efficiency

• Whether you have oil or electric heat, there are ways can get more heat for your money. Check the weather stripping on windows and doors every year, add insulation to your attic and shut off heat vents or the electric heater in rooms that aren't used very often.
  
  If you have an oil furnace, use a programmable thermostat so you can set the temperature lower at night and when you're not home.