Home improvement and remodeling projects can save you some green.  Remodeling by replacing an old furnace is one such example.  There are government tax incentives available for installing an energy efficient furnace that meets certain standards.  Green remodeling pays off now with these incentives.  Your state or local utility may also offer incentives for green remodeling projects.

Efficiency ratings need to be considered for remodeling that includes appliance, furnace, or boiler replacement.  For example, a 90 percent efficiency rating means that 90 percent of the fuel converts to heat.  Most 20 year old furnaces are operating at roughly 60 percent efficiency.

Another important consideration, regardless of the type of heating, is that the heat source be adequately sized for the space you are heating.  If you have done some remodeling and added on to your house or have finished your basement, your heated space has increased.  Your furnace or boiler size should be increased, as well.

Due to electricity prices, electric heat is the least desirable form.  But the fuel source for your heat varies in different parts of the country.  Gas, electric, heating oil, wood, and pellets are all common heating fuel sources.  Installing a fireplace to supplement your current system may not be efficient, but it will add value to your home.

Also, remember to regularly maintain your heating system, and have it checked by a heating professional at least once a year.  Regular maintenance will improve the efficiency of your system and prolong its life.