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Heated water is produced in a boiler and circulates through pipes either to radiators or convector panels. The radiators or panels diffuse heat in the rooms providing an equal distribution of heat in all sections.
Yes, hydronic systems are safe. These systems do not make the surfaces extremely hot and the modern systems are enclosed in a way that there are no exposed flames or electrical connections.
Of course, hydronic heating is energy-efficient. Because water has a higher capacity to hold heat than air, there is less consumption of power which therefore leads to lower power bills.
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