During the winter season, gifts aren't the only hit to your wallet but also your energy bill.

According to Manitoba Hydro, the average home heated by an electric furnace spends $1,416 annually.

Geothermal heating can save up to five times the heating cost as per the conventional furnace, and an outdoor wood furnace can be “free” heating if the source is readily available, says Barb Klassen Office Administrator for Bio-Heat Resources Ltd.

Saving money on energy has two major factors. How well insulated a home is and the temperature the homeowner prefers.

When homeowners are looking at alternative heat sources, they need to look at what's most appropriate for them, Klassen says.

"Maybe you're a homeowner that's not home a lot and need something that's dependable, you wouldn't want a wood stove for instance, where you have to stoke it every day. You might then prefer the geothermal system which will run day and night, and you never have to think about it."

On the flip side, Klassen says if you have wood and like to work outside and have a fuel source available you may choose a wood stove.

It is also important to know what is available in an urban or rural setting. Urban and rural people have access to geothermal heating and cooling, pellet stoves, wood stoves, and fireplaces. 

Available only in a rural environment are outdoor wood furnace/boilers and biomass units.

Manitoba Hydro says there are also many small changes one can do to cut down on energy costs.

*Find and seal air leaks. Install weatherstripping, caulking, and gaskets around doors, windows and electrical outlets to reduce air leakage and save energy.

*Use the sun’s energy. In winter, save energy by opening your shades in the morning on the sunny side of your house and closing them late in the day.

*Schedule regular maintenance for your heating and cooling equipment. They will last longer and run more efficiently. Don't forget to change the furnace air filter every 3 months.

*Keep your ducts clean and your floor registers open to get the air flowing.

*Adjust your thermostat at night and when you're not at home. In winter, lower the temperature by 3°C or more for at least 8 hours a day to save up to 4% on heating costs.

*Use a smart thermostat. It can be controlled remotely to set and adjust the climate of your home. It can also learn from your schedule and sense when you're home and adjust the temperature accordingly.

*Turn down the heat or close the floor registers in rooms you aren't in often.

*Install exhaust fan timers for proper ventilation and save energy without over-ventilating your home.

*If you have a wood fireplace, consult a chimney sweep on how you can reduce heat loss when the fireplace is not in use.

Living in the Northern Hemisphere heating is a necessity for everyday life, but saving money on an energy bill is always a pleasant surprise.