Selecting the best-suited HVAC system depends on factors such as cost and availability of the energy source; appliance or system efficiency; cost to purchase, install, and maintain the appliance or system; and environmental impacts associated with the fuel. Energy prices tend to vary somewhat by geographic location because of availability of fuel type and supply, market pressures, production capacity, weather, season, and politics. A common way to compare heating energy costs is by determining the delivered heating cost, expressed in consistent units (i.e., $/MMBtu or $/GJ), based on the cost of the fuel ($/unit), heating value of the fuel (HV), and seasonal efficiency of the system or appliance (η_hs) expressed in decimal form (i.e., 80% = 0.80):

Compute the delivered heating cost ($/MMBtu) for the following electricity-powered heating units (i.e., furnace, boiler) based on a heating value of 3413 Btu/kWh and a cost of $0.15/kWh.
a. An electric resistance heating unit (i.e., furnace, baseboard heater) with a seasonal efficiency of 100%.
b. An air source heat pump with a seasonal efficiency* of 150%.
c. An electricity-powered geothermal heat pump with a seasonal efficiency* of 350%.

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Delivered Heating Cost ($/MMBtu) = ($/unit 1 000 000 Btu/MMBtu)/(1hs. HV) Delivered Heating Cost ($/GJ) = ($/unit - 1 000 000 kJ/GJ)/(nhs HV)