""It was tough to think about heat that day, but my heating bills were astronomical last winter, and I was determined to have an alternative in place this winter," Grebin says."

"Despite milder temperatures and lower heating costs this winter, homeowners continue to seek more efficient furnaces."

""The heating season of 2005-2006 was a huge year for people changing out to high-efficiency furnaces," says Mike Moe, sales coordinator of Xcel Energy's HomeSmart, the appliance repair program that consumers also can use to purchase and install furnaces, boilers, central air conditioners and water heaters."

""The prices at the gas pump were really high, and the energy prices were volatile. That kickstarted it, but it's continued," says Moe. "Not to the same degree, but people are very much aware of high efficiency appliances and the savings and tax credits that come with them. They're also concerned about global warming and environmental issues in general."

""Plus, manufacturers are coming to the table with a lot more options," Moe says. "They're meeting the demand with more highly efficient furnaces.""

""It's like an air conditioner that works in reverse," says Don Reiter, manager of HomeSmart."

"Here's how: The hybrid system from Bryant, the brand that Xcel installs, replaces a home's central air conditioner with a heat pump. The pump cools your home on hot days and provides energy-efficient heating on moderate days. On colder days, typically 30 degrees or cooler, the gas furnace kicks in."

""Basically, you've got two fuel sources for home heating: the electric heat pump and the natural gas furnace, and the heat pump is much more efficient all the way down to about 30 degrees, which then saves you on fuel costs for heating the home," says Moe."

"By replacing an existing furnace and air conditioner with the hybrid system, consumers could save up to 25 percent on annual heating costs, depending on the efficiency of their current appliances."

""With a variable-speed fan, the homeowner can control the fan speed right at the thermostat in order to customize their comfort level," says Moe. "The electricity needed to run a variable-speed fan is much lower than it is for a standard fan.""

""Multilevel homes tend to have hot and cool spots, and by running a variable speed fan … you can then recirculate the air constantly in order to balance out temperatures," Moe says."

""We're seeing more of that," says Reiter. "It works well in larger homes. If you are not on the second floor for most of the day, for example, you can turn down the temperature in that area of the home, then kick it up when you need to. You can base your heating on your lifestyle.""

""It hasn't come to fruition yet, but we're getting ready for Web-based technology, where you can, say, adjust the temperature of your home from your computer at your office. We think that's around the corner," Reiter says."

"Costs vary widely, especially when factoring in installation, but a consumer might expect to spend 20 to 30 percent more for a high-efficiency furnace than a traditional one, with the expectation to recoup that money over time in energy savings."

"Beyond furnaces, some homeowners are choosing to invest in geothermal, which harness the energy of the earth to help heat and cool their homes."

""That's been a huge increase for us this year," says Tom Haley, co-owner of Haley Comfort Systems of Forest Lake, Hastings, Rochester and Plainview. "Energy costs were the driver early on, and from that people have realized they don't want to be so susceptible to the rising costs of energy.""

"Since it's not the standard choice in heating and cooling, many consumers aren't sure what the system involves."

""A good way to explain it is to think of an older fridge, the kind with the black coils in the back that get hot," says Haley. "What's happening is as the fridge works to cool the inside, with the help of a compressor, it ejects the heat and pushes it behind the fridge through the coils."

""In a geothermal system, as it cools your house, that coil is buried in the yard, and the tubing ejects the heat outside of the home and pushes it into the ground through plastic polypipes filled with fluid," says Haley. "In the winter, it pulls it back in and heats the home.""

"A compressor, which is located in the basement, will help raise and lower the temperature as needed. The system uses a pump powered by electricity, but Haley says homeowners should ask their utility company whether they are eligible for rebates or lower electric rates for using this system. He estimates this system costs on average $18,000 to $20,000 to install."

"Frank and Judy Nichols hired Haley to install a geothermal
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