To get a true electric rate, you need to calculate in all the surcharges and adjustments on the bill which can be substantial. If you have a bill from that company, just divide $/kWh and use that figure. Maybe they have a sample bill on their web site that would allow the same thing. Is nat gas available where you live? What kind of shape is the boiler and tank in? The Hudson Valley covers a surprisingly large climate range or is Hudson Valley the name of a burg? No matter, Mike_home's statement about the need for calculations is correct. (Maybe crazy) idea for the pros here, but could the oil boiler be kept used for backup heat with a coil for the forced air? It might be worth considering for three reasons, first, cost could be favorable to electric strips, second, heat could be powered by a small generator in case of outage, third, you could use the oil of domestic hot water if gas is not available.

It boggles my mind that people think 10 years is a long time. After installation, you pay each month (including financing) about what you were already paying anyway (probably less). You do it for 10 years, (especially with all the new government incentives, rebates, and low-interest financing now available) and after 10 years you're paying a ridiculously paltry amount for heat. Of course it makes sense. Think of the payback over 20 years once that loan is paid off! Even if you only end up paying even 1/2 of the normal cost over that period (including the cost of your system and electric), you're still saving substantially. I know not everyone lives in a home for that long, but seeing low energy bills does increase home values. I've seen homes sold almost immediately with their main advertising point being their geothermal system even in our horrible present climate while others still linger on the market. Not only that, but why not decrease your monthly bills slightly (before the loan is paid off)? Slightly lower bills, a higher sales price which will pay off the rest of that loan - still makes sense. We had someone come out to our house and they specifically calculated everything from current estimated heating costs, heating/cooling with geo, then savings/payback period. This was a full service option, including thermostats, etc. Finding that should not be difficult. One argument I saw above made no sense. If it really is worth insulating your home to use a normal system, it is a no-brainer to insulate your home using geo. Whether you decide to use geo or not, you can't say, "Well, normal is better, because we insulated, too." That makes no sense. Insulate either way. Then compare. The financial analysis does not make much sense, either. Yes, it would be wonderful if we could just stop paying the oil company, live without heat, and invest that money! Realistically, while you could want to put away the whole $25,000, you really are still using it for heat either way over those 14 years as projected. Geo, with the loan, electric, etc, will cost about the same each month as heat before the loan is paid off, so you can't just pretend that money could be invested elsewhere. Use it upfront with geo, use it over several years with oil, it makes no difference. That money is being spent on heat. Should it be spent on something worthwhile, or just, at the end of 10 years, have you still spending the same amount on more heat with oil? Geo will typically initially cost you a little less (including the loan and electricity) per month than you would be paying otherwise, then suddenly drop dramatically to only the cost of using the system as soon as that loan is paid off. That's money you would have spent anyway each month with your normal system (even though some of it went to financing, it is still less that what you would have paid for oil). Then suddenly, once the loan is gone, you actually DO have perhaps $1,000 a year in money saved that you can invest if you wish over 10 years. If, with financing costs, it does cost more per month than your normal heating system, that's one thing; but if not, the argument that it is wasting money is not valid. You're spending it anyway. Might as well spend it on something that will, in the future, save you tons of money. (Not just a little, a lot.)

Thanks for the feedback (hope others will reply with more)! OK, I guess that sounds right not to state 'furnace' for electric. We really want to eliminate oil even if it is minimally cost-effective or costs a little more. There would be some peace-of-mind since the furnace is 15yrs old and the tank (and line) is underground and likely 60yrs old. Also skyrocketed price of oil will probably stay or go higher. With all my research thus far I ruled out 13 SEER or lower. One upcoming bid is 14.5 SEER. We will not do propane, so it is heat pump with current oil or new electric. And wouldn't any heating fail with an electrical outage since the fan needs electricity (unless one has a generator)? Also, any advice on recommended brands? I think one guy is going to offer York and Goodman and the other guy Carrier (but there are so many brands out there and I am finding a LOT of unsatisfied reviews).

I'm not sure what the question is, but your logic is right. With fossil fuel prices on the rise (and electric rates too for that matter), heat pumps still remain an economical choice for heating and cooling. Can you post the utility rates for your area? Others can advise you on which would be the best choice given the rates, but most likely a heat pump would be...