This study analyses household heterogeneity in the valuation of lifetime heating energy costs. The valuation is estimated from the willingness to pay higher upfront costs at the moment of installing a residential heating system to obtain savings in heating costs over its lifetime. We combine extensive administrative register data on new houses built in Finland during 2010-2011 with local electricity prices and engineering estimates of heat consumption and estimate a mixed logit model of heating system choice. The data allow defining the valuation as a function of several observable household characteristics. On average, households are willing to pay €7 more in upfront costs to obtain annual savings of €1 in heating costs over the lifetime of the heating system. However, we find considerable heterogeneity across households and a valuation ranging from €2 to €15 in higher upfront costs. The relatively low valuation indicates policy measures could be needed to accelerate energy efficiency investments in the detached housing stock. Furthermore, the notable heterogeneity suggests the cost-effectiveness of policy measures can be improved by targeting the households with lowest valuations.