In Turkey, energy consumption for heating constitutes an important part of the total energy consumed. The choice of heating system and the preferences in the use of related energy sources, excessive energy consumption and environmental impact cause high costs and significant area losses. A large number of parameters must be evaluated for the correct system selection. These parameters determine the installation cost of the system, heating and cooling loads during the construction period, and the environmental impact of energy consumption. This study aims to obtain the most economical and environmental friendly energy resource in a housing structure and accordingly, heating system and the system spatial value. The use of fossil fuels such as coal, fuel oil and natural gas and the geothermal energy as a renewable energy source are planned to be investigated. The analysis was carried out on how the climate conditions and economic values of the provinces of İzmir, Balıkesir, Kütahya and Ağrı, which are located in different climatic regions will be effected and where direct use of geothermal energy is concerned, will affect the results of the different system usage. Life Cycle Cost assessment was performed to investigate the relationship between the initial investment in a housing structure and the use of energy source and system selection. Geothermal energy is the best source of energy both for installation and renewal and for fuel consumption and environmental purposes. Geothermal heat exchangers selected for the source take up 36 times less space than coal boilers, and the economic reflection of this area is approximate 8000 if given the example of İzmir province. While considering the environmental impacts, CO2 emissions of geothermal energy are 15 times less than natural gas and 50 times less than coal.