What would our best heating option be?
We live in Juneau, Alaska and our main heating options are electricity from hydro power (14 cent a kilowatt) or oil (diesel #2; $5 a gallon). We have an old oil fired hot water base board heating system we would like to replace with an energy efficient system. We can get a $10,000 rebate from AK Home energy rebate program on renewable energy sources (Air and ground source) and we are also looking at the federal tax credit. And either an air or ground source system reduces our electricity cost by about 1/2 for specialized rates. Our house is a 2.5 star rating, 1,500 sq ft, one level, single family home from 1970. We are worried we would have to come up with another heat source, if we chose air because we could be below freezing for several weeks. The bid we got for geothermal heat pump it would be $38,000 including duct work–with rebates and tax credits we would pay about $20,000.
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