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Just like any other well designed major home improvement, an alternate heating or
energy system will add value to your home. The average is $10 in added home value
for every $1 in annual energy savings.
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Wood Pellet and Corn Stoves
  Wood pellet and corn stoves caught fire as home heating
alternatives in 2004 when the price of oil crossed the $40 per
barrel threshold and didn't retreat until July of 2008.

During this time hundreds of thousands of pellet burning
stoves were sold displacing millions of gallons of fossil fuel.

Wood pellet stoves remain a popular heating alternative due to
  the relatively stable price of wood pellets and corn, the availability of stoves for as
little as $1,300, their simplicity of operation, and easy installation.

Depending on the cost of fuel oil, a pellet stove could pay for itself in only 2 to 3 years.
 
Solar Electric PV Roof Panels
  The versatile solar panel can be configured to harness solar
energy for a variety of purposes.

Photovoltaic (PV) panels or solar roof shingles are used to
convert the sun's rays into electricity. A professionally
installed solar PV system is estimated at $7 - $8 per watt or
$15,000 for a typical 2kW system. But if you're handy, a DIY
  system of similar size can be installed for substantially less.

Solar panels for hot water systems are 2 to 3 times more efficient than solar PV.  A
solar hot water system can be sized for domestic hot water only or a combination hot
water/radiant heating system to satisfy the majority of your home heating needs.
 
Residential Small Wind Power Turbine
  The best location for small wind turbines, most of which are
mounted on poles, is an area with an average wind speed
of about 12 miles per hour.

According to Ron Stimmel, the small wind advocate at AWEA,
"It all depends on your wind resource to get a decent
payback. You need a little bit of land so you're not talking
cities, but mostly suburban and rural locations"
 
Many municipalities have height limitations on structures but turbines generally
perform well when they are 30 feet above any structures in a 500-foot radius.

In urban and suburban locations where physical limitations and zoning laws prevent
the installation of full fledged wind energy systems homeowners have turned their
attention to rooftop micro wind systems and home made wind power kits.
 
Geothermal Closed Loop System
  Probably the most mysterious and least understood of the
alternative heating and cooling options is geothermal.

Simply put, a geothermal system extracts stored heat from
beneath the earth's surface and transfers it to your home
for winter heating - then reverses the process for cooling by
removing the heat from your home and "sinking" it back into
the ground.  
 
At the heart of every geothermal system is the ground source heat pump. This type of
heat pump has an average efficiency of 300% which is 3 to 4 times more fuel efficient
than a conventional home furnace.  

The extraordinary efficiency of a geothermal system means a payback period of only 5
- 6 years if you currently heat with oil.
 
Radiant Floor Heat Installation
  Radiant heat differs from forced hot air in that it heats
objects (flooring, furniture, etc.) instead of the air.

This method takes longer to bring a room up to
temperature but provides soothing, even, long lasting heat
that eliminates cold spots and keeps dust and allergens to
a minimum.
  (Click to enlarge)
Today's radiant heating systems use 95% efficient condensing boilers to heat the
water pumped through plastic tubing which heats the floors. Installation methods
include embedding the tubing in cement or pre-grooved modular panels; or
suspending the tubing under the sub-floor between the floor joists.

Since there are so many installation options available it's difficult to offer a cost
estimate, however a very good modulating boiler can be purchased for less than
$3,000.

Strictly speaking, radiant electric floor heat isn't alternative heating but it's an
excellent retrofit application for heating cold bathroom or kitchen floors and new
home additions.
The term alternative fuel describes wood, wood pellets, corn, wheat, rye and other biomass
materials as well as solar energy, wind power, and water for micro-hydro or geothermal
systems.

No matter which method of alternate heating or power you choose they all qualify for the
ongoing 30% energy efficiency tax credit. In addition to the 30% tax credit many state and
local agencies offer incentives or rebates that could increase your total savings by an
additional 20% or more.

Below is a brief overview of the most popular heating appliances and energy systems. If
you can't find what you're looking for try the Site Search box above.

The combination of tax credits and recession related demand weakness for products and
services offers consumers the best opportunity this decade to green up their homes.  
Improving your home with alternative
energy heating will benefit you in 3
ways:

1. Save you thousands of dollars in
heating and energy costs for years to
come.

2. Improve the value of your home.

3. Give you peace of mind from more
predictable fuel and energy costs.

The key to a successful transition from
fossil fuels to renewable resources is
determining which alternative fuel is
most abundant where you live, and
therefore the cheapest.