Hey Susan,

It's a little bit of a broad question- let's start by asking what you pay a gal for propane and what you pay for a kwh for electricity.

20 years - you have gotten your money's worth.

Check into a gas fired "on-demand" water heater by Rinnai. It is a small wall mounted unit that has no water storage capacity, it heats cold water as fast as you can run it through, so you only heat what you use.

Well Susan,

I wasn't going to jump on the tankless issue just yet, but they are probably "the latest word" in water heaters. Standard heaters haven't changed much in 20 years.

A gas tankless heater will save about 38% on your gas water heating over your current heater. I wouldn't consider a tankless electric heater. Tankless heaters are more expensive than tank heaters - even with the 30% tax credit. In addition to costing less to operate, they are small, and provide continuous hot water.

Refigman suggested Rinnai - a good choice, but there are others also.

I've been trying to research my energy costs, and learned that I pay $3.829/gal. for propane. Last year I spent $2,080.00 on propane, which puzzles me because I can't figure out how I could use so much. It's not as though I still have kids at home. And in those days we had a gas dryer. These days, a propane heater in the barn uses about 110 gal. per year, but the usage in the house isn't high.

I can't figure out what I pay for electricity, but that's moot question because beginning next year the cost is going to rise over a period of three to five years. Not something to look forward to.

I took a quick look at those tankless heaters, and they sure do cost more than the others. I want to take a closer look at them, though, as well as the standard kind.

Thanks--I'm glad I asked!

Susan

WOW!

Okay, I did some down and dirty calculations for you. First, lets subtract your 110 gal a year from your total. Then let's say that 30% of your propane use is water heating. You would save about $190 a year in energy costs assuming that propane stays the same price (not realistic) if you used a tankless heater.

Jake, was the WOW because it appears that I'm paying too much for propane, or because I use too much of it, or because my electricity cost is going up? Or something else? You were impressed by my knowledge, perhaps? :-)

I think I'll probably pass on the tankless models. But I still don't know if I'll get propane or electric.

The Wow was the cost of propane and the annual bill.

Here's the thing, gas or electric, you need to look at how you can cut your costs.

I don't understand the regional variation in propane costs. Your propane costs $1.48 more than another person who has posted recently.

BTW: my annual natural gas bill is $408 and includes furnace, hot water, dryer and stove - in central Indiana where it gets plenty cold in the winter.

Thanks, Jake. I wonder if the difference is regional, or if it's my particular gas company. Now that I have the numbers, I'm going to explore other options. I've stuck with the same company because the drivers have known me for years and are always helpful if I can't get the barn heater started or whatever. But I've wondered if I've been overcharged. Perhaps not, but I'll find out. And I'll report back.

You mean you heat your house with natural gas, and the annual bill is only $408?? I don't suppose you live in a 50 sq. ft. house.....

It is a small house, 950 sq ft. But I do keep it 72 degrees in the winter - nothing crazy.

This news story, linked below, might be part of the explanation why my propane bills are so high. Yes, Suburban Propane is my supplier.

Here's a quote from the article: "Suburban Propane is charging 60 to 70 cents more per gallon than some of their competitors."

Here is a link that might be useful: Suburban Propane Prices: The Real Deal