Wood Stoves

• While wood-burning stoves have been around to heat homes for many years, newer models are an efficient and safe alternative to oil heat. Wood-burning stoves range in price from a few hundred dollars to a few thousand dollars in 2011, depending on brand, model, efficiency and the size of the space to be heated, but can also save significant money compared to oil heat. Choose a wood-burning stove appropriate for the amount of space you need to heat and consider whether you have access to enough wood to see you through the winter. Wood heat produces air pollution and is not as sustainable as other alternatives, though it is still a greener and less expensive choice than oil.
  
  

Pellet Stoves

• Pellet stoves are similar to wood stoves but use a compacted pellet of sawdust, wood chips and other biomass wastes including corn kernels and nut shells in place of wood for a more efficient burn. While pellet stoves can be cheaper to install because they do not require a chimney, they are often more expensive to buy and require the purchase of bags of pellet fuel. Pellet stoves also can require electricity to power fans and controls. The Environmental Protection Agency states that pellet stoves are very clean-burning and do not need to fulfill smoke emission requirements.
  
  

Solar Energy

• Solar energy relies on harnessing the power of the sun and turning it into heat for your home or hot water. A solar collector made of photovoltaic (PV) panels or solar roof shingles are installed on the roof of your home to collect and hold the sun's heat to disperse into your home. Most homes will still need to rely on another heat source for approximately 20 to 60 percent of their heat, especially in the winter. Solar heating still cuts down on costs and environmental impact.
  
  

Geothermal

• Geothermal or ground-source heat pumps require a large initial investment, typically between $10,000-$25,000 for equipment and installation in 2011, but are three to four times more efficient than a conventional furnace. You can recoup the costs in approximately five years, according to the Department of Energy. Geothermal heat pulls the high temperatures located below the surface of the earth up into your home through pumps and fluid circulating through tubes to heat your home in the winter and pull heat out of your home in the summer. Pumps can last for 25 years and may reduce energy bills by 35 percent.