Which is Cheaper: Propane or Natural Gas? | Make the Switch Today (2024)

FAQs

Which is Cheaper: Propane or Natural Gas? | Make the Switch Today? ›

The answer to this isn't as straightforward as you might think. Propane is more expensive than natural gas but natural gas burns much faster than propane. In fact, it burns at a rate of two to one. This means that to heat two spaces of the same size, you'll use twice as much natural gas than propane.

Propane is usually more expensive than natural gas on a per-unit basis, but it's also much more efficient. In fact, propane produces about twice as much heat energy as an equivalent amount of natural gas. While propane is measured in gallons or liters, you'll find natural gas measured in cubic feet or cubic meters.

Efficiency: Because propane has a higher BTU rating than natural gas, propane tends to heat faster and use less fuel when compared to the same task performed with natural gas. Cost: While prices can vary by region, it is generally true that natural gas is a more affordable option for businesses.

Natural gas is likely to prove the cheapest way to heat a home if you have this heating option available to you where you live. Although prices have risen, natural gas is the least costly form of space heating. This is followed by electricity, propane, and heating oil, from the next cheapest to the most expensive.

Propane is more efficient.

Therefore, the cost efficiency is roughly equal when the propane price for the same volume is about double the natural gas price. If the propane price is less than double, propane is more cost effective and if propane costs more than double natural gas, natural gas is more efficient.

First, tanks only hold about 80% of the rated capacity. So a 500-gallon tank only holds 400 gallons. Propane is like gas—prices vary by location and change daily. The current national average of propane is $2.337 per gallon, meaning it costs about $940 to fill up a 500-gallon tank.

A 500-gallon tank holds 400 gallons of propane and can last several months, ranging between 2 to 14 months. On average, homeowners can expect that the tank will last around 5 months with regular use of appliances.

“Natural gas is still the least costly form of energy in most of the country,” David says. “Plus, furnaces will cost less than a central heating system and should last many years longer.”

Of all four fuels, oil is the most costly way to heat a home this winter, according to the EIA. Oil prices have risen so high that oil heat, once competitive with other major home-heating fuels, has become the most expensive to use. Prices are tied to world events, so they can change quickly.

Which is healthier propane or natural gas? ›

Propane is a greener alternative when compared to natural gas and other types of fuels because of its efficiency, non-toxicity, and low emission output. Natural gas releases less carbon dioxide when burned compared to propane, but it's important to look at the other gas emissions that occur.

If you're switching from another heating source to propane, there might be additional costs for equipment, installation, and propane tank rental. Conversion costs can vary widely but usually range from $1,000 to $5,000.

Cost and Efficiency

Generally, propane is more expensive than natural gas on a per-unit basis because its cost is measured per gallon, while natural gas is valued per cubic foot. Hence, natural gas is cheaper per unit of energy than propane.

Energy efficiency

Since propane delivers more BTUs (per gallon or per cubic foot) and burns less volume per hour than natural gas by a factor of two-to-one, it is an energy-efficient alternative to natural gas for many applications.

According to the U.S. Department of Energy, heating a home in the U.S. with a propane heating system costs far less than heating with an electric system. In addition, over time, propane water heaters can cost one-third less to operate and heat water twice as quickly as electric water heaters.

The Size of Your Home - Most propane furnaces are 90% efficient, while electric heat is 100% efficient. As energy usage increases, the more that difference in efficiency adds up.

Relatively expensive storage

Even though natural gas is easier to store and transport than other fossil fuels and renewables, it has one big storage disadvantage. Its volume happens to be four times as big as petrol's. Because of this, natural gas storage is much more expensive since more storage space is needed.