Is it cheaper to heat with propane or natural gas?
Is it cheaper to heat with propane or natural gas?
$90 – $200 monthly cost to heat with propane
$30 – $60 monthly cost to heat with natural gas
Cost of propane vs. natural gas
It is typically cheaper to heat with natural gas than with propane. Home heating with propane costs $90 to $200 per month on average, while heating with natural gas costs about $30 to $60 per month. However, the most cost-effective heating method for you depends on local fuel prices, energy efficiency, and usage.
| Heat source | Monthly running cost | Average fuel price |
|---|---|---|
| Natural gas furnace | $30 – $60 | $1.40 – $2.10 per therm |
| Propane furnace | $90 – $200 | $2.00 – $2.50 per gallon |
Average monthly gas bills vary by state due to differences in local gas prices and climate. Like all fuels, the costs of propane and natural fluctuate over time.
Comparing fuel prices for propane and natural gas can be complex due to their different units of measurement. Propane pricing is by the gallon, while natural gas measures consumption in hundred cubic feet (CCF) or therms.
Propane vs. natural gas cost comparison
Propane gas, or liquefied petroleum gas (LPG), is a byproduct of natural gas processing and petroleum refining stored on-site in above-ground or buried tanks. People choose propane for home heating due to its portability and availability in areas without natural gas pipelines.
Natural gas is a fossil fuel extracted from underground reservoirs and delivered through pipelines to homes. Natural gas offers lower costs in areas with established infrastructure. However, it burns faster than propane, at a rate of two to one, which can impact the overall consumption and cost effectiveness.
| Factor | Propane | Natural gas |
|---|---|---|
| Average fuel price | $2.00 – $2.50 per gallon | $1.40 – $2.10 per therm |
| Availability | Stored in tanks for availability in areas without pipelines | Requires a piped network, limiting availability to areas with infrastructure |
| Energy content | 2,516 BTUs per cubic foot | 1,030 BTUs per cubic foot |
| Efficiency | High efficiency due to higher energy content | Lower energy content may require more fuel for the same heating output. |
| Environmental impact | Releases fewer pollutants and greenhouse gases when burned | Slightly more toxic than propane, but still cleaner than oil or coal |
| Safety | Heavier than air, which can pose a risk of accumulation and explosion if leaks occur | Lighter than air, allowing it to dissipate more quickly in the event of a leak, which can reduce explosion risk |
| Convenience | Requires storage and regular tank refilling | Directly connected to the home through gas lines, offering a continuous supply without the need for refilling |
The cheapest way to heat your home depends on the existing infrastructure and fuel costs in your area.
Natural gas furnace
Most homes with available natural gas will choose a gas furnace over propane. A natural gas furnace costs $30 to $60 per month to run and the convenient delivery of gas through underground pipelines provides a reliable fuel supply with no bulky tanks or supply disruptions.
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The initial installation of a natural gas furnace can be more expensive when adding the cost of a gas line connection.
Propane furnace
A propane furnace costs $90 to $200 in monthly operating costs and is a popular heating source for homes without access to natural gas. Propane is delivered by truck and stored in a propane tank that costs $300 to $3,000 for above-ground installation or $1,500 to $5,000 for a buried tank.
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Natural gas vs. propane cost factors
The cost of heating with propane or natural gas depends on initial installation costs, ongoing fuel prices, energy efficiency, and availability in your area. Consider the following cost factors when comparing propane and natural gas for home heating:
Price per unit: Natural gas is generally cheaper per unit (gallon or cubic foot) than propane.
BTU content: One cubic foot of propane delivers roughly twice the BTUs (British Thermal Units, a measure of heating energy) compared to natural gas.
Efficiency: Propane is more energy-dense, so you'll use less of it to achieve the same heating output as natural gas, which can offset the higher cost in some cases.
Appliance efficiency: A high-efficiency propane furnace might outperform a standard natural gas model.
Gas availability and infrastructure: Propane requires a tank installation, and various suppliers can fill the tank, leading to more competitive pricing. Existing natural gas lines reduce upfront costs.
Seasonal fluctuations: Propane demand can spike in winter, impacting prices. Natural gas prices might be more stable year-round.
FAQs about propane vs. natural gas
What is liquid propane vs. natural gas?
Propane and natural gas are both fuel options but with a key difference: storage. Propane is liquefied and kept in tanks on your property, refilled by trucks. Natural gas stays gaseous and is delivered directly to your house through underground pipelines.
Can you buy natural gas tanks?
No, you typically cannot buy natural gas tanks for home heating purposes. Natural gas is delivered through pipelines and remains in a gaseous state until it's used in your home.
What type of gas is best for heating?
Natural gas offers better convenience and affordability, but propane boasts advantages in safety, efficiency, and environmental impact. The ideal choice for your home heating depends on your unique priorities and situation.
Getting estimates from a gas or propane furnace installer
When hiring a furnace installer, consider the following tips:
Understand license and insurance requirements for contractors in your state.
Choose from installers with the best reviews on HomeGuide and Google.
Contact customer references provided by contractors to assess their performance.
Look for rebates on energy-efficient ENERGY STAR-qualified equipment.
Compare cost, energy efficiency, and warranties in written proposals from different contractors.
Ensure the contractor specifies all project details in writing before work begins.
Walk through the final installation with the contractor to ensure they’ve completed everything correctly.
Questions to ask a furnace installer
By asking these questions, you can gather important information to make an informed decision when hiring a furnace installer:
Which furnace brands do you install?
Can I review references from your previous projects?
Does this furnace qualify for local tax credits or rebates?
Will you arrange for an electrician to handle the furnace hookups to thermostats?
Will you determine the size of the new furnace using a Manual J load calculation?
Does your estimate cover all permits, labor, materials, cleanup, and equipment fees?
Is the disposal of the old furnace included in your estimate?
How long will the installation process take?
Does my contract ensure the specific make, model number, and energy rating of the new gas furnace?
Will you inspect electrical connections, ductwork, or gas lines for issues before installation?
Are ductwork modifications necessary to connect to the new furnace?
Will you test my air quality post-installation for carbon monoxide leaks?
Using our proprietary cost database, in-depth research, and collaboration with industry experts, we deliver accurate, up-to-date pricing and insights you can trust, every time.