Electricity vs Propane

9 years ago

Before I make a final decision to replace my propane tank hot water heater with an electric tank, I wanted to see if it would cost more, less or about the same. I found that 1 gallon of propane delivers as much heat as 26.8 kilowatt hours of electricity. Assuming propane costs $3.00 a gallon and electricity costs $.09337 per kilowatt hour, it seems that propane has no advantage at all over electricity except maybe recovery time. The way I figure it, to heat the same volume of water, it costs $3.00 with propane and $2.50 with electricity.

Can anyone confirm or refute my calculations?

If these numbers are correct, why would anyone want a hybrid heat pump system with a second propane furnace for really cold weather instead of the heat strips in the air handler?

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Comments (16)

kitchendetective
9 years ago
In many areas, electricity is much more expensive per kilowatt hour.
sharonann1
9 years ago
My electricity can easily cost 10x that amount. We have propane for hot water.
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Hi, is the cost of operation an issue? So let's rule out electric tankless from the beginning. It doesn't achieve anything that you want, and adds a lot of cost to the electrical side of things. Your generator would not be able to provide power for electric tankless . Options are: -Standard Electric Resistance Tank -Hybrid Electric Tank (very low operating costs, but needs air from garage, basement, etc from which to pull heat). -Standard propane tank -Propane Tankless (less operating costs than above) A 200k BTU unit at those water temps will provide all the water you need. -Hybrid tankless w/tank (low operating costs compared to standard propane tank, but high volume) I would go with Electric hybrid and avoid propane. Propane has had some crazy cost volatility. Something to consider on your new build is grid tie Solar PV (electric) with battery backup. This might be in the ballpark cost wise if you were otherwise considering a generator and propane install. Grid-tie solar would provide some percentage of your electric power that your home needs and feeding any excess back into the power company. The battery backup would provide you with emergency power. You are in a good part of the country for Solar and since it's a new build, you can do it right
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sktn77a
9 years ago
The OP's electricity cost per KWh is not out of line. However, delivery/distribution charges can double this; but not 10 times! Given all the hassles with propane, however, I must agree with him..... why would anyone ever want propane?
tigerdunes
9 years ago
I would like to know the efficiency of a propane HW heater. Certainly not 100%.

Electric HW will be significantly less to operate.

The consideration for propane would be to other appliances like gas logs, cooktop, dryer, and possibly a propane fueled backup generator.

IMO
tedred
9 years ago
Based on the US average, propane seems to be slightly more cost-efficient. The prices vary from place to place, though. With the given rates, electric is a better choice.
Then again, average propane water heaters are 60 percent efficient while electric water heaters are about 80 percent. That is another plus for the electric.
udarrell
9 years ago
My last propane rate October 31st was $1.799 a gallon, not $3.00 a gallon.

My electric is .1046 a KWH.
26.8 * .1046 is $2.80 a gallon for propane.

Therefore, if propane stays below $2.80 a gallon it will be cheaper than electricity.

I like propane...You can fill a 500 gal tank with 400 gal of propane, usually when the price is rater favorable.

Last years shortages are being protected against by most service companies so prices ought to be more stable.
mike_home
9 years ago
The big difference in the price per gallon as to whether you own the tank or if the propane company owns it.
udarrell
9 years ago
Here, the propane company owns the tank.
So, what is the rate difference.
tigerdunes
9 years ago
Udarell

I am not certain I agree with your analysis of electric and propane HW heat as far as operating cost.

What is efficiency of propane HW heat versus electric HW heater? Doesn't electric have a clear advantage?

TD

Thank you.
ionized_gw
9 years ago
Conventional, old-school NG and propane DHW heaters have huge stand-by looses associated with sucking air out of your house and up through an uninsulated area of the storage tank.
tigerdunes
9 years ago
Due to coding, my nat gas HW heater is outside tucked inside an Aqua Hut enclosure....luv that hot shower when we occasionally lose power from an ice or snow storm...

TD
mike_home
9 years ago
Udarell,

That seems like a very good rate based on what I have read in this forum. Propane prices have large variations across the US.

Ionized,

What is your definition of a huge stand by loss?
cvthreeIII
Original Author
9 years ago
The national average Jan 014 for propane was $4.01. Nov 014 $2.40. Electricity rates don't seem to vary much over time but do vary widely by location. For me, I think I will save money switching to electric from propane for heating and hot water and I will sleep better at night knowing that my chances of being injured by explosion or carbon monoxide is nil. An 80 gallon tank negates the recovery factor.
ionized_gw
9 years ago
"Ionized,

What is your definition of a huge stand by loss?"

I am comparing a conventional gas water heater with a central, open flue on the one hand, to an electric water heater or a forced-air gas appliance where there is no open flue between firings.

How the system is used obviously changes the importance of standby losses.
mike_home
9 years ago
I agree there are more standby loss with the convention hot water heater, but I don't think it is that significant.

I have calculated it costs about $25 a month to run my conventional gas hot water heater. Last year I replaced it. I could have spent the extra money on one that has a damper. Perhaps I would have save 20% in energy costs which would mean about $5 a month. The primary reason I didn't do it is because the prior two summers I experienced multiple day power outages for the first time. The conventional water heater still works with no power. With anything else I would be forced to take cold showers.
ionized_gw
9 years ago
It is very true that there is little incentive to install thermally efficient gas water heaters with gas prices being what they are. The marginal cost improvements are paltry, as you calculated.

OP, and others, there is a water heating cost worksheet available at the Energy Star web site.

Here is a link that might be useful: water heating costs

Electricity vs Propane

Comments (16)

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Electricity vs Propane

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