When judged purely on electricity usage, the baseboard heater is extremely energy efficient as 100 percent of all electricity used in the machine is converted into heat. When the base materials for electricity are considered, however, gas and oil furnaces are more efficient.
A heat pump can also be more energy efficient because it warms up the house while decreasing the total utility costs. The effectiveness of a heat pump results in a decrease in electricity use of up to 40 percent when it is installed in a mild climate area. As of 2015, baseboard heating systems are considered one of the most expensive heating options per one million BTU of heat.