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Electric Vs. Propane Heating

Q. Due to space and teenagers! we are in the process of selling our present home and buying another. We are in the fortunate position of being able to choose what type of heat we want installed in the home. It is a large bi-level with 2 fireplaces, so we know we won't have to rely solely on the furnace, but will have it installed with ductwork, etc. as part of the purchase agreement.  I am looking for information and cost analysis on electric versus propane (no natural gas in the country). I think the propane will be cheaper, but my husband has concerns. Any resources or suggestions?

I may not be the most versed in the area of heating differences but I can tell you our experience.  We bought our farm 8 years ago and it had electric heat.  It was always cold.   We ended up using 2 kerosene heaters most of the winter just to keep warm.  You could wear all the sweaters ect. you wanted but your nose and toes were always cold.   One February our electric bill was 350.00 - and we were cold the whole time. We saved our money and 5 years ago had propane installed.  The propane company sold us the furnace and then did all the labor for free.  I even had them run pipes to the stove and water heater so when they needed replaced I had a choice of what type to get.  Our house is now very warm, and My heating bills are less than half of what the electric was.  I had a large propane tank installed and  have it filled about late June or early July when prices are low.  If you wait until Aug. or Sept. the price starts rising and during winter it is much higher.  Watch oil prices and the propane (a by-product) prices will soon follow suit.  K.

I was an engineer for an electric utility for 20 years and know that propane or oil are the way to go. Personally, we have oil and If you can install the tank in ground or offsite you will not have to deal with the smell when they fill the tank. Ours is in the basement and the oilmen just don't get it! they overfill every time!    >Unless the price of oil is at or above $1.00 per gallon, BTU to BTU it is the most economical (given the same furnace efficiencies). Propane and Natural gas are both good and safe sources provided you know the rules. The best thing to do is to read up on the safety rules of propane. It's really quite simple and safe. If you will have a forced air system you will prefer the cleanliness of the propane as oil makes for much more cleaning. If you have the idea of going with a radiant heating system you may be more frugal to install an oil furnace. Just remember TANK PLACEMENT. Engineer

My feelings are that propane is comparable to heating with natural gas, and is FAR  (did you hear that...)FAR less expensive that electric.  Electric heat is THE most expensive way to heat a dwelling, unless you car producing the electricity, by say solar or wind generation. I live in rural New Mexico, and we have a 250 gallon propane tank, that cost me $190 to fill in fall, and I am on a top off schedule for February, which means they come in February no matter what and fill up whatever the tank can hold.  This last February isn't a fair call because the winter was so mild, but in years past, this fill is generally not higher that $80 or so.  That's for the whole year.  We do have a woodstove, and we do use it, but I wouldn't think we'd spend more than another $100 in the year without it.  On the outside that would come to $370 - 400 in the event of a hard winter and no wood to burn.  That's FOR THE YEAR!!!  You can expect a monthly electric billing somewhere near half that per month if you're lucky heating with electric. A downside that is worth a mention, but has never been a problem for us so far  The electric company service is constant as long as they receive a check.  With propane you're relying on a delivery to your remote location, and trucks do break down, supply can be interrupted, or weather can prevent delivery (typically when its the coldest).  None of these things have ever happened to us out here in the 7 years we've been here, but I am aware of this possibility.

Editor's Note: With changing prices each person needs to evaluate their specific needs, to aid in this manner please consider the following formulations:

  • Multiply the oil heat price per gallon by 0.663 to give the equivalent price per gallon of propane
  • Multiply the natural gas delivered price per therm by 0.92 to give the equivalent price per gallon of propane
  • Multiply the electricity price per kWh by 27.0 to give the equivalent price per gallon of propane  

for more details on comparisons visit www.energykinetics.com/savingsHeatingFuelComparisons.shtml#comparePropane

Comments (24)

Hello! I stumbled across this while Googling...looking to buy a propane tank because I have been told the gas companies in our area will only "rent" them to you for approx. 50 cents a gallon above the cost of propane. What a scam! (We sold our farm and bought smaller acreage with a newer home. Drawback: we lost our free gas :-( and now will have to deal with propane. However, it is coupled with a Trane high-efficiency heat pump).

Those who are blindly recommending propane here are not giving you anywhere near the whole story: What KIND of electric heat? Baseboard? Resistance? Of course those are expensive! But a 12-14 SEER or higher heat pump will destroy every single propane cost model. Not even close. And Geothermal goes well beyond that.

A good compromise, if you are in a climate that regularly goes below freezing in winter, would be a "Dual fuel" system: Propane furnace coupled with a good high-efficiency heat pump (which also gives you central air). The heat pump will save you HUGE dollars in the "fringe" heating months of September, October possibly November, and then March/April. On the coldest days the propane may in fact be more efficient at times (see earlier reference to low temps).

I state without hesitation that propane by itself is wildly expensive when compared to other alternatives. To be fair, so are electric baseboard and straight resistance heating. But those really are not good alternatives, and are RARELY installed as stand-alone systems today. It simply is not done.

As for the guy who was a utility engineer, I would ask: What kind of engineer? I spent 15 years in the electric utility industry and spent a great deal of time on this question. There is simply NO WAY that propane is the most efficient or least expensive home heating method/fuel. Pure, complete nonsense. Mark my words: Propane is used as a primary heating fuel ONLY in areas where natural gas is not available.

I used to hear anecdotal stories from field member services reps; they reported that propane salespeople would stop at new construction homesites and ask what type of heating was being installed. When the answer was "geothermal" they would not even get out of their vehicle!

Please give strong consideration to a dual fuel system. If you must use propane, this will save you a huge amount of money over the life of the system.

Finally, make sure you get a qualified, licensed HVAC person to PROPERLY SIZE whatever system you choose. Many a good home has been badly (and expensively) heated by a botched size and install.
#1 - Just Passing by - 10/02/2010 - 23:37
Thank you"just passing by". We are renovating (10 years now)
a 101 year old victorian farm house. We had central air and "heat"
installed about 8 years ago, and have been freezing ever since. It does get rather chilly here in east tennessee, and we are considering having a dual fuel system put in. We have 2 units, one upstairs and one downstairs. We are only replacing the downstairs unit. Many people in this area say we don't need propane, however an old home like this just does not warm up well with just a heat pump. Thank you for explaining this so well.
#2 - cold in east tn - 10/06/2010 - 16:39
Hello....I was in upper management in the propane industry for over 30 years, for both large domestic propane companies and for natural gas utilities, and have just a few comments. Propane heat, like natural gas heat, is far warmer coming out of the duct than electric can ever be. A heat pump in any climates north of, say, North Carolina, will only provide a home heat that is always chilly, and also quite expensive - on the range of $400-600 per month in a peak winter month. Propane will provide much more pleasant heat, but it is not cheap. With propane approaching $2.50-2.75 per gallon, and the average house in the north using 200-300 gallons in a peak month, the charges can actually exceed electric. Natural gas is by far the most comfortable and the least expensive, but is not available in all areas unless there is an existing distribution system in the area fed by a not-too-distant high pressure transmission line.

The best suggestion, whether propane or natural gas, is to us a hybrid system......use the gas in the months when the temperature drops below 42-45 degrees, and use the heat pump for all other days, including for the cooling, for which it is really designed and unmatched.

Finally, if one has the funds, getting the most up-to-date and efficient gas furnace and heat pump will be expensive, but will certainly pay for itself in 6-10 year of savings in fuel costs.....of both fuels. And, with the current federal tax credits and the various manufacturers rebates, this could be the best time to make the move.
#3 - Jerry W - 10/17/2010 - 11:26
I agree that Propane is a better fuel, but the fact is that the rates charged by electric utilities is regulated whereas propane suppliers are not. They are able to charge you any rate because they know you cant hop suppliers easily.

I stick to electric , much less effort than dealing with greedy propane suppliers
#4 - Harry P - 10/24/2010 - 11:42
Kinda on the fence about both.. Propane in north Carolina is so expensive but we have never had electric.. I wanted to find out the cost to get an electric pump installed and i happen to see this site.. we are on a budget plan and our regular payment is 150 for 11 months with top offs every month... i was new to propane so i think they took advantage of that and now i am stuck and dont know what to do.. any suggestions?
#5 - On the Fence - 11/08/2010 - 10:28
We live in the Northwest. When we first built our house 15 years ago we had propane forced air system put in. That year we had a really bad storm and we went through a 250 gallon tank in 3 weeks. This cost us around 400.00 or so now it is up to 600.00 to fill the tank. I have been avoiding using the propane heater. We also had put in a heat pump and pellet stove. I am considering putting in an electric furnace, and have been slowly doing away with propane because of the cost.
#6 - Lori - 12/13/2010 - 10:44
You are right that propane heat is expensive. I spent over $2000. 00 this past winter (in 6 months) to heat a 1600 sq. foot house in North Carolina. We had an electric heat pump in our previous home and our bills averaged about $160/month.
#7 - Betty W. - 12/15/2010 - 18:25
for those that need proof of frugal life's accurate claim (or if you'd like to compare costs of other heating sources) see the US Dept of Energy's comparison calculator at http://www.eia.doe.gov/neic/experts/heatcalc.xls
#8 - Steve - 01/01/2011 - 22:11
I live in a 1400 sq ft home in Northwest Pa with a propane furnace, it cost $800-$850 to fill my tank, wich only lasts about 6 weeks in the winter, I am strongly considering switching to an electric furnace.
#9 - Sean W - 01/06/2011 - 18:28
OK this is what you need to do, step one is to figurer out what your degree days are for you area. This is a fact put out by the weather service so you can estimate how many degree days you have to heat for. second is to determine how much energy/ insulation your home has as this will change all the numbers quoted by those experts. i can make the above very greatly. (example my house and my neighborers hose were identical constructed and heated with heat pumps. I super insulated my house and his last month heating bill was 320 dollar . My heating bill was 88 dollars. ) this insulation values critical in energy usage. next BTU is BTU . the only difference is the cost per BTU. Find the one that is the cheapest or bets fits your lifestyle. you can find all this information on a web site called
'build it solar dot com." he sells nothing and has every calculator you may need to make a decision..
#10 - Jeff - 01/10/2011 - 15:46
Well gosh them dang energy bills here sure don't look frugal to me, I think I'll stick to my $140 a month in the worst of weather and start appreciating what I got seeing how I guess I just didn't know how good I had it, thanks for reminding me!
#11 - Anonymous - 01/10/2011 - 16:16
When I bought my house in New Jersey in 1996, the price of heating oil was less than $1 per gallon. Now it is $3.30 per gallon. To save money, this is what I do: For downstairs, which is about 1600 sq. ft., I use oil furnace to heat. For upstairs, which has three bedrooms and a bathroom and is a little less than 1600 sq. ft., I use portable electric heaters in each room. Yes, portable heaters. I have hooked up each heater to Lux Win100 programmable thermostat which costs about $35 on Amazon. To be safe, each heater has its own dedicated 20 Amp circuit instead the 15 Amp that most manufacturers recommend. Also, never use an extension cord. Each heater is programmed to go on at about 10:00 p.m. and off at 8:00 a.m. The oil furnace is also programmed to go on at 8:00 a.m. and off at 10:00 p.m. Recently, we've had a severe cold spell (temps at night in the single digits to negative single digits) and I used Kill-a-Watt meter, which I bought from Home Depot for $28, to measure the use of electricity in my 400 Sq. ft. master bedroom. The total amount used for about ten hours was approximately 4Kwh. Electricity at about 17 cents per Kwh at this time of the year, it cost me about 70 cents to keep the bedroom at constant 72 degrees the entire night. I use DeLonghi Mica Panel heater in the master bedroom which I bought for about $80 a couple of years ago. If I were to run the oil furnace, I am absolutely positive that it would have cost me a lot more than 70 cents. If you want to buy portable heaters, check in Consumer Reports to see which are economical and safe heaters. So, in the end, I would say that if electricity is used as zonal heat with programmable thermostats, it will definitely save you money.
#12 - Paul - 01/23/2011 - 17:07
I have a brand new townhome, approximately 1700 sq ft. I live in the DC Metro area, and have propane bills that range from 400-600 a MONTH during the winter. This is keeping the thermostat at 67 in the day and 62 at night. Always FREEZING in my home. Had I not got on the "budget plan" this year and locked in my propane price at 2.59/gallon, my bill for January this year would have been over $700!!! For a townhome! Do NOT use propane to heat your home if you can help it. I am looking at selling my home because of this.
#13 - hating_propane - 01/27/2011 - 18:32
To just passing by-

Agree- Geothermal is highly efficient, and cost effective (cheap) to operate. But, what is the cost to have the wells, either vertical or trenches for horizontal storage, drilled or excavated. In our area, it would be $50,000 plus to have a geothermal system engineered and installed, according to our local heating contractors and PA public utility people. I don't want to be perceived as disrespectful, but the payback on that is too long for me.
#14 - Greg Ralyea - 02/13/2011 - 12:23
We bought a propane-heated home in October, and it is wiping out our savings account. First bill in late November was $400. 2nd bill was first week of January for $1,086. JUST received another bill this weekend (for one month of propane usage) and it was $876!!!! I'm pretty sure I had a mini-stroke upon opening that bill. I don't know how propane companies are staying in business at these prices, but we are switching to an electric unit before next winter even if I have to take out a loan to do it. It's RIDICULOUSLY EXPENSIVE!! (and by the way, we are only heating the lower level of our home and it is only about 1500 sq ft - we are keeping the upper level closed off - also keeping the thermostat set no higher than 66 degrees so we aren't even feeling warm) :(
#15 - death by propane - 02/14/2011 - 12:29
Wow, so glad to have found this thread. My husband and I just moved to a cute little 2 bedroom cabin that's heated with propane. We've never been in an area that used propane before. It cost us over $500 to fill the tank, and that was just about a month and a half ago. It's already down to 30%!!! To say I was shocked and disturbed is an understatement. We have been trying to avoid using the heater, but it has been so cold lately, and we still have a few months to go... I had no idea propane was so expensive! We were charged $3.75/gal!!! I would never think electric heaters would be a cheaper option, but I will have to look into them. There's no way we can afford to rely solely on propane... ridiculous! We love renting this little house, but it is pretty drafty, and definitely not energy efficient! It is only about 1000 sq feet. I can't believe we are looking at $250/month without even counting electricity costs!
Ugh.
#16 - JK - 02/24/2011 - 19:46
Propane...OUCH
Now that Qaddafi has shown oil refiners they can charge pretty much anything they desire, we will get hammered next year on the cost of our propane. I never thought we'd be considering an electric furnace, but nuclear, wind, solar and coal will, from now on, be cheaper than propane, which is pegged to the price of gasoline. If we weren't selling our house, I'd fire up the chainsaw and install one of those wood fired backyard units.
#17 - Will Gaudreau - 03/03/2011 - 20:50
Propane....Ouch is right.
Wish I had seen these comments 5 years ago when we had a new 2800 sq. ft. house built in SE Pennsylvania and made the mistake of installing propane heat. The house is dual zoned and we normally keep the upstairs at 60 and downstairs at 65 with setback thermostats at night and when we're not home during the day. I spend a minimum of $3,500 per winter (Nov - Mar) for a house with 2x6 walls and extra insulation in walls and ceilings. I also made the mistake of leasing the propane tank from a propane dealer so I cannot purchase propane from anyone else. I'm already looking at alternative heating systems so I can get rid of propane heat. STAY AWAY FROM PROPANE!
#18 - lance anderman - 04/01/2011 - 13:43
homeowner
This is all so confusing. I live in the Poconos and we freeze in the winter because of our electric heat. The reason, the cost! When we moved here the previous homeowners told us heating was about $300-400 per month, what a lie! We had family here for the holidays and our electric bill was $1600 for the month of December! The average bill, is about $850/month. At this point, we only heat the area that we're in, then before we go to bed we turn on the heat to our bedroom about half hour before so that it is warm. Then we shut it off when it gets comfortable, sleep with two goose down comforters, then whoever gets up first will turn the heat back on so that the room is toasty again. In other words if we're not in a room, then there is no heat in that room so of course the entire house is freezing. The only exception to this is that the heaters in the rooms where water pipes are have to be kept on to prevent those pipes from freezing. We don't encourage company to visit during the winter because of this. This electric heating is just not an efficient way of heating a home. I am confused about propane, radiant heating and all the other things. Just don't know what to do. But I do know that this is no way to live and enjoy your house.
Forgot to mention that each room has its own thermostat and individual heater.
#19 - bethany Brown - 07/02/2011 - 08:43
Thinking of Renting a House
I'm glad I stumbled upon this thread. I'm going to see a house for rent this Friday in North Jersey (Morris County). I've lived in apartments in the city most of my life so I've never had to choose one type of heating over the other and have never had to pay for heat/hot water directly. The house I'm going to see has an electric water heater and propane gas for everything else. I was surfing around for an average cost and usage of propane in this area. I don't know that I could pay this much ($500-$800 a month or even for just 4 months) for just one utility. That's just nuts.

If it has an electric water heater, will it help the situation by much? The house has dishwasher, washer/dryer, and one bathroom.

I wanted to get a practice run before I purchased a home, but now I don't know that it would be worth it.
#20 - Rebecca Q - 07/13/2011 - 14:30
propane heater(s) in basement?
I live in a 1500 sq ft, 1960s vintage ranch home, upgraded insulation & reasonably tight - area is Northeastern PA.

Have a relatively new forced hot water oil furnace but with the cost of oil, it's still prohibitive.

I installed a 60,000 btu coal burner in the center of my basement, and have used that exclusively for the past three years. With the addition of a reciprocating fan and registers cut in the floor of each room, it is adequate, but a pain to keep up with, and, of course, I can't GO anywhere lest the fire go out.

I'm thinking about putting some propane units in the basement. My first thought was to use two or three, 30,000 BTU, blue-flame, wall-mount, ventless units, strategically placed, but wonder if this is the best/safest/most efficient approach.

Cost is definitely a factor - I need to keep the installation cost under $1k.

Something that will operate without electricity is also preferable, since we often lose power during the winter, though I can always supplement with the coal/wood burner.

Speaking of which - I do have a double-wall, stainless steel chimney in place for the coal burner, which might or might not be usable for some kind of propane unit.

Thanks in advance.

Joe
#21 - Joe Befumo - 08/23/2011 - 10:39
We bought a vacation house at pocono and was shocked by the heating bill the first month. We went there only 8 days that month and got a E bill for $500!
We did some research and installed a wood stove the next year. It cost us about $2000 to get it installed and that year we used only 1 and 1/ 2 cord of firewood for the whole winter at the cost of $160 per cord.
For us, wood stove is the most efficient way to heat the home. The drawback of course, is you have to add firewood every 4 to 6 hours during the use.
#22 - Ning - 09/20/2011 - 03:24
Prices vary!
It's funny to read all the lofty pronouncements, without any consideration of up-to-date, local prices. Here in upstate S. Carolina, electricity is only 8.5 cents/kWh, but propane is $3.66 gallon, about the highest in the nation, plus we have to pay to rent their tank! Oil is the same per gallon as propane, but has about 45% more energy. Natural gas is 40% of the cost of propane, but it's 700 ft away for us. Because the wholesale price of propane is only $1.75/gallon, the propane business seems to be rather profitable, I'd say, due to inadequate competition. My forecast is for heating oil, which is so similar to diesel fuel, to become more expensive as China grows. There's more new discoveries of natural gas than oil, so that would be my first choice.
#23 - John Taylor - 11/11/2011 - 19:00
Another (retired) wired librarian
First, the fireplaces originally mentioned are likely a heat sink -- that is, losing heat -- unless they are a Rumford or Bell Rumford design which is energy efficient. (Just Google it.)
Second, consider a pellet stove in your primary living area. I heat most of my house with a small pellet stove. One winters' worth of pellets costs about as much as one month's worth of propane heat.
I use my high energy efficient propane furnace on those rare occasions (usually in January) when the pellet stove just isn't enough, and at all other times as backup. Set to 55 degrees, it comes on if the pellets run out at night or I'm away from home.
Good life to everyone!
#24 - Beth Clemensen - 01/13/2012 - 17:32
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