How much does a propane furnace cost to install?
How much does a propane furnace cost to install?
$2,200 – $5,700 standard-efficiency unit installed cost
$3,500 – $7,400 high-efficiency system installed cost
Propane furnace cost
A new propane furnace costs $2,200 to $5,700 on average to install a standard unit. A high-efficiency propane furnace costs $3,500 to $7,400 installed. Propane furnace prices average $600 to $3,300 for the unit, plus $1,000 to $3,100 for labor. Installing a new propane furnace and ductwork costs $4,600 to $12,300.
Installing a propane tank costs $1,700 to $4,300.
Renting a propane tank costs $50 to $200 per year.
A propane furnace conversion kit costs $150 to $500.
The average cost to heat a home with propane is $1,000 to $2,500 per year.
| Home size (Square feet) | Unit cost | Total replacement cost |
|---|---|---|
| 1,300 – 1,600 | $600 – $2,200 | $2,000 – $5,700 |
| 1,600 – 1,900 | $650 – $2,400 | $2,050 – $5,900 |
| 1,900 – 2,200 | $700 – $2,500 | $2,100 – $6,000 |
| 2,200 – 2,600 | $800 – $2,700 | $2,200 – $6,200 |
| 2,600 – 3,200 | $900 – $2,800 | $2,300 – $6,300 |
*Prices exclude propane tanks.
A propane furnace lasts 15 to 20 years, and propane tanks last 20 to 30 years.
New propane furnaces are more energy-efficient and lower heating bills.
Compare furnace replacement costs of all fuel types, including natural gas, oil, and electric.
Average cost to install a propane furnace
The following table shows the average price to replace a propane (LP) furnace.
| National average cost | $3,900 |
| Minimum cost | $1,800 |
| Maximum cost | $7,000 |
| Average range | $2,200 to $5,700 |
*Based on 112 project costs reported by HomeGuide members.
Propane furnace prices
New propane (LP) furnaces prices for a home are $800 to $2,700 on average without installation, depending on the brand, efficiency rating, and BTU-heating capacity.
Home propane furnace prices by brand
The furnace brand selected determines the overall cost, quality, efficiency, life span, and warranty length.
| Brand | Price range |
|---|---|
| AirQuest | $650 – $2,500 |
| American Standard | $850 – $3,000 |
| Blueridge | $600 – $2,000 |
| Bryant | $800 – $3,400 |
| Carrier | $1,000 – $2,800 |
| Century | $1,000 – $1,500 |
| Direct Comfort | $600 – $2,500 |
| Goodman | $600 – $3,200 |
| Lennox | $1,400 – $7,500 |
| MRCOOL | $800 – $1,500 |
| Rheem / Ruud | $800 – $3,900 |
| Royalton | $1,300 – $3,200 |
| Trane | $1,200 – $3,000 |
| Winchester | $1,200 – $3,400 |
| York | $800 – $2,000 |
*Not including installation
Propane gas furnace cost by BTU
A 60,000- to 100,000-BTU propane gas furnace costs $1,900 to $6,200 installed to heat the average 2,000 square-foot home. Replacement units should match or exceed the old furnace’s BTU heating capacity.
| Furnace size (BTU) | Total cost installed |
|---|---|
| 40,000 | $2,000 – $5,200 |
| 50,000 | $2,050 – $5,300 |
| 60,000 | $2,100 – $5,400 |
| 70,000 | $2,200 – $5,500 |
| 80,000 | $2,300 – $5,700 |
| 90,000 | $2,400 – $5,900 |
| 100,000 | $2,500 – $6,000 |
| 120,000 | $2,600 – $6,200 |
| 140,000 | $2,700 – $6,300 |
*Prices excluding propane tank installations.
British Thermal Units (BTU) measures the amount of heat output. A 100,000 BTU furnace with 90% efficiency only produces 90,000 BTUs of heating.
High-efficiency propane furnace cost
A high-efficiency propane furnace costs $900 to $3,300 for a 90% to 99% AFUE rated furnace, without installation. Standard 80% to 89% efficiency propane furnaces cost $600 to $1,900 on average.
| Type | AFUE | Average unit cost |
|---|---|---|
| Standard efficiency | 80% – 89% | $600 – $1,900 |
| High-efficiency | 90% – 99% | $900 – $3,300 |
The Annual Fuel Utilization Efficiency (AFUE) rating measures the energy efficiency of furnaces. A higher AFUE percentage produces more heat on less fuel, lowering fuel costs. A furnace with an AFUE of 90 turns 90% of its fuel into usable heat.
Standard efficiency units typically have 1 or 2 heat settings and blower speeds.
High-efficiency systems save energy with variable-speed blowers for precise temperature control.
A high-efficiency unit may be eligible for an Energy Star federal tax credit of up to $300 and other local rebates.
Propane furnace installation cost factors
The total cost to install a propane heating system depends on the furnace size, duct condition, permits, propane tank installation, and project complexity.
| Factor | Average cost |
|---|---|
| Install labor (standard-efficiency) | $1,000 – $2,300 |
| Install labor (high-efficiency) | $1,300 – $3,100 |
| Installing new ductwork | $2,400 – $6,600 |
| Replacing old ductwork | $1,400 – $5,600 |
| Cleaning ducts | $300 – $700 |
| Condensation drain | $200 – $600 |
| Buying & installing propane tanks | $1,700 – $4,300 |
| Renting propane tanks | $50 – $200 per year |
| Propane gas line installation | $75 – $100 |
| Buying & connecting a heat pump | $2,500 – $6,000 |
| Permits & inspections | $250 – $1,500 |
| Old furnace removal & disposal | $150 – $400 |
| Thermostat replacement | $140 – $350 |
| Electric connections to furnace controls | $140 – $450 |
| Insulation replacement | $900 – $3,000 |
| Zoning system | $2,000 – $3,500 |
| Home energy audit | $200 – $500 |
Depending on the location of the furnace and existing home ducts, propane furnaces need 1 to 3 ventilation sources.
Labor costs to install a propane furnace
Propane furnace installation labor costs $1,000 to $2,300 alone for standard-efficiency units or $1,300 to $3,100 for high-efficiency models. Installing or replacing a propane furnaces takes 5 to 10 hours on average, depending on the furnace, size, location, and system complexity.
| Type | Average cost |
|---|---|
| Standard efficiency | $1,000 – $2,300 |
| High-efficiency | $1,300 – $3,100 |
Furnace repair contractors cost $75 to $150 hourly, plus $30 to $50 hourly per assistant.
High-efficiency models cost more to install for new intake lines and exhaust piping.
Installing a condensation drain costs $200 to $600 for high-efficiency furnaces.
Electricians charge $140 to $450 for connections to furnace controls.
Most contractors include carbon monoxide testing in their estimates.
Installing new insulation costs $900 to $3,000 on average.
Installing a chimney liner costs $900 to $3,800 and prevents masonry damage from the propane gas exhaust.
Thermostat replacement costs $140 to $350 on average.
HVAC zoning costs $1,700 to $4,500 to install. Zoned houses have 30% lower energy bills through controlled heating and cooling of each room.
Cost to install a propane furnace and ductwork
Installing a new propane furnace and ductwork costs $4,600 to $12,300 on average, depending on the home’s size, layout, and accessibility. Retrofitting ductwork to fit a new propane furnace can include replacing leaky ducts or adding new connections.
New ductwork installation costs $2,400 to $6,600 on average.
Replacing HVAC ductwork costs $1,400 to $5,600 on average or $25 to $55 per linear foot.
Duct and vent cleaning costs $300 to $700 or $25 to $45 per vent to prevent energy loss from clogged vents.
Duct repair costs $200 to $700 on average, depending on the length and location.
Ductwork sealing costs $400 to $2,700 for fixing links and insulating duct lines.
Asbestos inspection and testing costs $250 to $850 and is important for homes built before or during the 1970s.
Asbestos abatement costs $10 to $25 per square foot when replacing ductwork.
Residential propane tank installation or replacement
Buying and installing a residential propane tank costs $1,700 to $4,300 on average, depending on the size and whether it’s aboveground or underground.
| Tank size (gallons) | New tank price | Total installed cost |
|---|---|---|
| 250 | $1,200 – $1,500 | $1,700 – $3,500 |
| 500 | $1,600 – $2,300 | $2,100 – $4,300 |
| 1,000 | $2,500 – $4,000 | $3,000 – $6,000 |
Removing an old propane tank costs $500 to $1,000 on average.
Underground propane tanks cost the most to install due to the excavation. Excavation costs $2.50 to $15.00 per cubic yard, with most contractors charging minimum fees of $500+.
Propane tank rental
Leasing a propane tank costs $50 to $200 per year on average for a 250- to 1,000-gallon tank. Renting a tank typically includes free installation and repairs but requires a minimum annual propane usage amount at higher propane rates.
| Tank size (gallons) | Yearly cost |
|---|---|
| 250 | $50 – $75 |
| 500 | $60 – $180 |
| 1,000 | $90 – $200 |
Propane tank gas line installation
Connecting a propane tank to a gas line costs $75 to $100 or $3 to $5 per linear foot on average. Some propane companies offer free tank-to-furnace line connections with the purchase or rental of a new propane tank. Additional trenching fees apply for new line installs in rocky soil.
Cost to add a propane furnace to a heat pump
Adding a propane furnace to a heat pump costs $2,200 to $5,700 on average. Installing a new propane furnace and heat pump costs $4,500 to $12,200 to create a dual-fuel system. In colder weather, the propane furnace powers heating while the heat pump takes over in mild weather.
Dual-fuel heat pump installation costs $2,500 to $6,000 when connecting to an existing furnace.
Permits and inspections for propane furnaces
Propane furnace permits and inspections cost $250 to $1,500, depending on the unit’s size, location, and whether it’s a replacement or new installation. Electrical permits cost $50 to $350 more and apply when upgrading electrical thermostat connections. Contractors should pull permits.
Additional propane tank permit fees also apply:
Propane tank permits cost $25 to $75.
Propane gas line permits cost $50 to $200 for installing new lines with tank replacements and new propane heating system installations.
Fire safety inspections and tank recertifications cost $75 to $160 every 1 to 5 years.
Old propane furnace removal and disposal
Propane furnace removals and disposals cost $150 to $400 on average, depending on the location and distance to the dump site. Contractors typically include removal fees as part of their total labor costs. Additional fees apply for units more than 200 lbs.
Average cost to heat a home with propane
The average cost to heat a home with propane is $90 to $200 per month or $1,000 to $2,500 per year. The cost to run a propane furnace depends on the current propane prices, home size, insulation, climate, and the furnace’s efficiency.
Propane costs $2.00 to $2.50 per gallon on average, and most homes need 500 to 1,000 gallons a year for a propane furnace.
A high-efficiency propane furnace reduces operating costs by 10% to 18% compared to a standard-efficiency furnace.
Automatic propane deliveries for tanks connected to a gas-level monitoring system cost less than on-demand propane tank refills.
| Time period | Average cost range |
|---|---|
| Day | $3 – $7 |
| Month | $90 – $200 |
| Year | $1,000 – $2,500 |
Cost to convert to propane heat
The cost to convert to propane heat depends on the current fuel source, home’s layout, installation complexity, and if buying or renting a propane tank.
| Conversion | Average cost (+ renting tank) |
Average cost (+ buying tank) |
|---|---|---|
| Electric to propane | $2,000 – $5,700 | $3,700 – $9,800 |
| Natural gas to propane | $275 – $800 | $1,900 – $4,900 |
| Fuel oil to propane | $2,400 – $9,200 | $4,000 – $13,300 |
Before converting a furnace to propane, check with the Propane Education & Research Council for a list of propane retailers nearby.
Cost to convert from electric furnace to propane
Converting from an electric furnace to propane heating costs $2,000 to $5,700 when renting a propane tank or $3,700 to $9,800 when buying a propane tank. New vents are necessary since propane furnaces produce fumes that electric furnaces don’t.
| Service | Average cost |
|---|---|
| New furnace & replacement labor | $1,900 – $5,400 |
| Buy & install new propane tank | $1,700 – $4,300 |
| Rent a new propane tank (free or discounted install) |
$50 – $200 per year |
| Install new propane gas lines to furnace | $75 – $100 |
Alternatively, replacing an existing electric furnace costs $1,900 to $5,600.
Cost to convert a natural gas furnace to propane
Converting a natural gas furnace to propane costs $275 to $800 when renting a propane tank or $1,900 to $4,900 when buying a propane tank. The process includes replacing furnace valves, plus connections to new propane tanks. Underground propane tank installations are the most expensive.
| Service | Average cost |
|---|---|
| Gas to propane furnace conversion kit & labor | $150 – $500 |
| Buy & install new propane tank | $1,700 – $4,300 |
| Rent a new propane tank (free or discounted install) |
$50 – $200 per year |
| Install new propane gas lines to furnace | $75 – $100 |
Additional costs may include:
The cost to cap a gas line is $75 to $150 to prevent leaks. Some gas utility companies cap lines for free.
Removing natural gas piping costs $650 to $2,450 per line. Some city building codes require gas line excavations instead of allowing homeowners to cap and abandon lines underground.
In comparison, gas furnace replacement costs $2,000 to $5,200 on average.
Cost to convert fuel oil furnace to propane
Converting an oil furnace to propane costs $2,400 to $9,200 when renting a propane tank or $4,000 to $13,300 when buying a propane tank. Ductwork sometimes needs replacing when oil furnaces left soot buildup in vents. Prices depend on either aboveground or underground tank installations.
| Service | Average cost |
|---|---|
| Remove heating-oil tank and pipes | $400 – $3,500 |
| Buy & install new propane tank | $1,700 – $4,300 |
| Rent a new propane tank (free or discounted install) |
$50 – $200 per year |
| Install propane gas lines | $75 – $100 |
| New furnace & replacement labor | $1,900 – $5,400 |
Alternatively, replacing an existing oil furnace costs $2,500 to $6,000.
Propane furnace FAQs
Are propane furnaces safe?
Propane furnaces are safer than natural gas furnaces if installers and homeowners handle and store the connected propane tanks according to building codes. Always keep propane tanks outdoors in an upright position within shaded areas.
| Benefits | Disadvantages |
|---|---|
|
|
How long does a propane furnace last?
A propane furnace lasts 15 to 20 years on average, depending on the model, usage, and maintenance frequency. Propane tanks for a furnace last 20 to 30 years. Above-ground tanks often outlast underground tanks.
What size propane furnace do I need?
The most cost-effective propane furnace size needs 20 to 60 BTUs per square foot, depending on the climate zone. An average 1,600- to 2,600-square-foot home needs a 40,000- to 130,000-BTU gas furnace. The home’s size, climate zone, and insulation determine the furnace size needed.
| Home size (square foot) | BTU output needed |
|---|---|
| 1,200 – 1,600 | 30,000 – 80,000 |
| 1,600 – 1,900 | 40,000 – 95,000 |
| 1,900 – 2,200 | 45,000 – 110,000 |
| 2,200 – 2,600 | 55,000 – 130,000 |
| 2,600 – 2,800 | 65,000 – 140,000 |
*Based on the average 25 to 50 BTUs per square foot.
Hiring a propane furnace installer
Always ask licensed HVAC professionals to calculate your home’s heating needs and recommend the correct-size propane furnace.
Follow these tips when collecting new furnace estimates from HVAC technicians:
Propane installers should have certification from any of these groups:
Compare quotes from at least 3 different installers.
Read their ratings on HomeGuide, Google, and the Better Business Bureau (BBB).
Steer clear of the lowest bids that may signal low-quality work.
Choose licensed, insured, and bonded HVAC propane specialists with years of experience.
Request copies of all estimates, heating-load calculations, equipment orders, permits, contracts, and warranties.
Check the estimates for materials, labor, and equipment costs, as well as the installation schedule.
Ask all questions about the total project cost before signing contracts.
Plan a payment schedule instead of paying in full upfront.
Questions to ask
How many propane furnaces have you installed?
Do you have references from your past propane furnace installations?
Are you certified and insured?
Will you size my new propane furnace using the Manual J load calculation?
Will I need additional ventilation installed around my propane furnace?
Do I need a new concrete slab below my propane tanks outside?
What are your costs to rent propane tanks vs. selling them?
Can you help me set up automatic propane deliveries?
How much are excavation fees for installing the propane tanks underground?
What’s the life expectancy of your propane tanks?
Can you connect my new propane furnace to my existing propane tank, or will this tank also need replacing soon?
Is this propane tank capable of storing all the fuel I need for an average winter?
What’s the highest energy-efficiency rated propane furnace you sell?
How much does an annual service plan for this propane furnace cost?
What are the costs to connect my new propane furnace to existing ductwork, wiring, and thermostat controls?
Will you pull all permits and manage city inspections?
Does this estimate include all your labor and materials fees? What other incidental costs typically apply?
What’s your warranty policy?
Can you recommend other home energy-efficiency upgrades for this system?
How long will this project take?
Do you charge extra to remove all debris after installation?
Will this installation meet all local building code requirements?
Does this propane furnace need a backup heater?
If I need additional ductwork, do you supervise that as well?