Facing the very real prospect of unaffordable fuel oil this winter, many New Hampshire residents are making drastic changes to how they heat their homes.

Wood-pellet stoves are back-ordered, solar is hot, and some homeowners are replacing their oil burners with geothermal heat pumps.

It's clear that energy costs have reached a tipping point.

And Scott Keller, sales manager at Solar Components Corp., has seen it all before -- during the last energy crisis back in the 1970s.

That's when his Manchester store began catering to "do-it-yourselfers" who wanted to become more energy independent. "We had one of the first solar mail-order catalogs in the country," Keller recalled. "We were shipping products all over."

Now he's seeing a resurgence of interest in his product line, from solar hot water and heating systems to insulating window treatments.

Some customers trying to cut their dependence on fossil fuels are more concerned with reducing their so-called "carbon footprint" than with getting a quick return on their investment in alternative energy, Keller said.

But, he said, "The other category is people who truly are desperate for alternatives because they just can't afford to fill their oil tank and they have to sacrifice other things in order to heat their homes or hot water."

Seeking alternatives

When Laura and Gil Richardson of Benton Flats started the New Hampshire Sustainable Energy Association five years ago, she said, "We were basically preaching to the choir."

No longer. "The interest in renewable energy and energy efficiency has really skyrocketed," Richardson said.

Still, she warns, "there is no magic bullet" that can solve the energy crisis; it will take a variety of ideas and approaches. "The common phrase going around is there's a lot of silver buckshot."

The best first step to reduce your home heating costs this winter is insulation, Richardson said. "It isn't sexy, but it's so important. And there are areas in our homes that really make our homes sieves.

"Picture a bucket with a big hole in the bottom of it. And we just keep filling the bucket with our energy dollars and they just keep oozing out of the bottom. So we need to plug that hole."

Adding insulation to basements and attics can generate immediate energy savings, she said. "When you're cold, Mom always said put a hat on and put socks on. So insulating those basement walls is like putting the socks on, and putting the hat on is like insulating the attic."

Scott Keller of Solar Components in Manchester points out the magnetic strip that secures the Insulated Roman Shade to maximize its insulating qualities. (BOB LAPREE)

More Real-Life Economics stories:

►Union Leader survey: Economy causing multiple lifestyle adjustments (3)
►Oil options weighed as prices skyrocket (8)
►Pellet stoves efficient, but becoming scarce (10)
►10 tips for a warmer home (2)
►Personal bankruptcy still on the rise in NH

Sandra Jones is co-director of the Plymouth Area Renewable Energy Initiative, which has been getting lots of calls from folks looking to insulate, weatherize or add solar energy to their homes.

"What's happening is a lot of people that joined our organization having an inkling they needed to do something are now really starting to act," she said.

Some calls are from homeowners who never thought about energy conservation before the current fuel-price spikes.

"And I have to say, there's definitely some fear in some people's voices," Jones said. "It's scaring people and I'm sensing that panic."

Her organization promotes a "reduce and produce" approach: Reduce the amount of energy you consume, and produce some of your own energy.

Wood and pellet stoves

Many folks in New Hampshire are returning to a traditional source of heat this winter: wood.

Chris Smith, a salesman at Abundant Life Wood & Gas Stoves in Chichester, said sales of wood-pellet stoves and traditional woodstoves are booming.

The Chichester store also sells central heating systems that use pellets as fuel, but those are on back-order until next spring. So it's the pellet stoves that folks are after now, he said.

Many customers have told him they plan to get through the winter by shutting off rooms and putting wood or pellet stoves in the areas where they spend the most time, Smith said. "We're going back to the ways our grandparents used to heat."

The pellet stoves at Abundant Life sell for $3,000 to $3,800. Smith figures a typical customer will spend $1,200 for pellets this winter "" and save 30 to 50 percent on heating-oil costs.

Going geothermal

Jack Leary is vice president and chief financial officer at KW Management in Nashua, which designs and installs geothermal heat pumps, solar systems and wind turbines.

Lately, he said, "It's been going crazy."

They're getting a lot of calls about geothermal systems, which use electricity and the earth's own constant temperature to heat and cool. Putting in the system means a sizeable investment up front, but it eliminates dependence on fossil fuels.

The company is now putting in three or four geothermal heat-pump systems a month. "Last year we probably tripled the geothermal business, and this year we'll double that again," Leary said.

In the past, he said, '"People were talking about it, and it was a 'nice to have.' Now people are looking at this that they're going to find the money to do it. They just seem to be more serious about it."

Ninety percent of his residential geothermal business involves new construction, but his company also can retrofit existing homes with systems that provide hot water, heating and cooling. Geothermal systems, which can cost anywhere from $12,000 to $30,000 depending on the type of system and size of the house, qualify for both tax credits and utility rebates, Leary said.

Windows and insulation

You don't necessarily have to invest thousands of dollars to reduce your energy costs.

Keller said he usually recommends homeowners start with their windows. That's because even the best quality window, he said, "is still a big hole in the wall."

Adding insulated window treatments, for instance, "typically can save anywhere from 15 to 30 percent on your heating." You can make your own insulated shades for $100 to $150 a window; pre-made treatments will cost about twice that, according to Keller.

Last year, one of his customers set aside money each month to insulate one window at a time. "He came back and said the amount of money they were saving on their heating was in that 30 percent range. It does work."

Solar and socks

If you do have more money to spend, investing in a solar hot water system is a good choice, experts say. It will likely cost you between $5,000 and $10,000, but you'll recoup that in savings on fuel oil in four to seven years, Keller estimates.

Solar water heating "is your biggest bang for the buck," Jones agreed. For the average family, "If you currently heat with oil, a solar water system normally saves you about 200 gallons of oil a year."

After she installed one at her own home, she said, "We saw that savings -- and it was wonderful."

But Keller acknowledged for many people, there's a "Catch-22" when it comes to investing in energy renovations. "They don't have the money to spend to reduce their energy load, and they don't have the money to pay for fuel," he said.

For many folks, it will take real lifestyle changes to get through the winter, Richardson believes. "We've had a really comfy ride for a number of decades, and we need to get a little more realistic," she said.

"We're now used to living in a world that is always 70 degrees, whether it's deep, dark winter or it's the humid summertime," she said. "Our bodies know how to regulate, and we need to let them do that. It's time to start turning that dial back, putting sweaters on and putting fuzzy wool socks on."