Propane is generally more expensive than natural gas, costing between $2,000 and $3,000 per year to heat a home depending on factors like home size and climate, among others. We have analyzed propane heating costs from across the United States and developed the following data, where we break down the average cost to heat a home with natural gas by:

  • Square feet of home
  • Climate
  • Age of home & efficiency of furnace
  • Home style
  • Age of home & insulation

 

Average Cost by Square Feet of Home

This table breaks down the average cost to heat a home by the square feet. Generally speaking, larger homes will be more expensive to heat, but the relationship is not necessarily linear from smaller homes up to larger homes. Smaller homes with good insulation retain their heat much better than larger homes, so less energy is expended in heating the home. 

Calculations are based on homes in a moderate climate.

Square Feet Range BTUs Needed Per Month Cost per Sq. Ft.  Total Cost Per Month
< 1,500 < 3 Million $0.070 < $105
1,500 – 2,000 ~3.6 Million $0.072 $108 – $144
2,000 – 2,500 ~4 Million $0.076 $152 – $190
2,500 – 3,500 ~6 Million $0.080 $200 – $280
3,500 + >7 Million $0.082 >$287

 

Average Cost By Climate

Propane costs will vary greatly depending on the climate and temperature patterns of the home’s location. The following table outlines the cost per month of heating a home with propane based on the general location in the United States.

Climate Type Assumed Coverage Area (Sq Ft) BTUs Needed Per Month Cost Per Month
Mild (Southern US) 2,000 ~2 Million $70 – $85
Moderate (Mid Continent US) 2,000 ~ 4 Million $145 – 165
Severe (Northern US) 2,000 ~ 6 Million $230 – $270

 

Average Cost Based on Age and Efficiency of Propane Furnace

The average propane furnace operates at roughly 90% efficiency. However, age can greatly reduce this number. The table below outlines approximate degradation of a propane furnace’s efficiency by age and the corresponding monthly cost.

Age of Furnace Approximate Efficiency Assumed Coverage Area (Sq Ft) Cost Per Month
New – 3 Years Old > 94% 2,000 < $127
3 – 5 Years Old 94% – 90% 2,000 $127  – $133
5 – 10 Years Old 90% – 85% 2,000 $133 – $140
10 – 15 Years Old 85% – 80% 2,000 $140 – $150
15+ Years Old < 80% 2,000 > $150

 

Considerations: While all systems will degrade over time and likely increase costs, these numbers are highly contingent on the frequency with which the owner has their propane furnace serviced. Scheduling regular maintenance can greatly decrease these costs and keep your furnace operating at a higher efficiency level.

 

Average Cost Based on Home Style

Different Architectural styles can have a notable effect on propane heating due to their different building materials, height of the ceilings, and prevalence and size of windows. The below table outlines the approximate cost per month for heating five of the most common architectural styles with propane. Calculations assume a moderate climate and a coverage of 2,000 square feet.

Style of Home Concerns Assumed Coverage Area (Sq Ft) Average Cost Per Month
Victorian Larger rooms and windows may contribute to heat loss and higher costs. 2,000 ~$150 – $170
Ranch-Style Costs are moderate due to good heat distribution 2,000 ~$140 – $160
Modern Large glass areas may contribute to heat loss and higher price 2,000 ~$150 – $170
Colonial Multiple Stories may cause a slight challenge and price increase 2,000 ~$145 – $165
Log Homes Moderate to high cost due to combination of natural insulation and potential leaks  2,000 ~$145 – $165

 

Average Cost Based on Age of Home and Insulation

Additionally, the age of a home has a great effect on the efficacy of propane heating, as older homes tend to have less or more degraded insulation. The following table provides data on how the age of a home and approximated quality of degraded insulation will affect the monthly cost of propane heating.

Age of Home Insulation Quality by R-Value Assumed Coverage Area (Sq Ft) Estimated Degradation Average Cost Per Month
0-10 R-38 to R-49 2,000 < 5% $126 – $134
10-15 R-30 to R-38 2,000 5% – 10% $135 – $143
15-20 R-25 to R-30 2,000 10% – 15% $143 – $152
20-35 R-19 to R-25 2,000 15% – 20% $152 – $160
35-40 R-15 to R-19 2,000 20% – 25% $160 – $166
40+ R-11 to R-15 2,000 >25% +$166

 

Concerns: The above data is highly contingent on a number of factors. It is important to consult with a HVAC professional to have your insulation evaluated.

If you are interested in a copy of this report, contact us here. 

Chase McGee

Content Writer

Chase is the lead content writer for Oasis HVAC.
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