Heating with propane
Updated August 2026 · EIA weekly residential average, late 2025–26 season (~$2.67/gal)
Quick answer: propane delivers heat at $32.44 per million BTU (90% AFUE propane furnace (condensing up to 97%)) — #6 cheapest of 7 common options. A 2,000 sq ft home in a cold climate runs about $2,920/season.
Rural gas-in-a-tank: burns clean in high-efficiency furnaces but carries fewer BTU per gallon than oil — and usually costs more per BTU than both gas and oil.
Pros
- • Available anywhere, clean-burning
- • Runs furnaces, water heaters, stoves and generators
- • High-efficiency condensing units available
Cons
- • Among the most expensive common fuels per BTU
- • Tank lease terms can lock you to one supplier
Season cost by home size & climate
| Home size | Mild | Moderate | Cold | Very cold |
|---|---|---|---|---|
| 1,000 sq ft | $487 | $973 | $1,460 | $1,946 |
| 1,500 sq ft | $730 | $1,460 | $2,190 | $2,920 |
| 2,000 sq ft | $973 | $1,946 | $2,920 | $3,893 |
| 2,500 sq ft | $1,216 | $2,433 | $3,649 | $4,866 |
| 3,000 sq ft | $1,460 | $2,920 | $4,379 | $5,839 |
Compare against everything else
Estimated heating load: 81 million BTU/season — a rough figure; insulation and thermostat habits move it a lot.
Season cost by fuel (edit any price — it's your local number that matters)
≈ 7,913 kWhs · season-average COP ≈ 3.0 for a modern cold-climate air-source unit (2.0–4.0 depending on climate)
≈ 900 therms · 90% AFUE furnace (standard 80%, condensing up to 97%)
≈ 6.1 tons · 80% efficient pellet stove (75–85% typical)
≈ 5.3 cords · 70% efficient modern EPA wood stove (open fireplaces can be 10% or worse)
≈ 688 gallons · 85% AFUE oil furnace/boiler (older units 80%, new 87%+)
≈ 984 gallons · 90% AFUE propane furnace (condensing up to 97%)
≈ 23,740 kWhs · baseboards, electric furnace or space heaters — 100% efficient at the unit, but every BTU is made from scratch
Estimates: national-average prices (sources on each fuel page) and typical system efficiencies. Your utility bill has your real per-unit price — plug it in above for a number you can act on.
FAQ
How much does it cost to heat a home with propane?+
At the current average price ($2.67/gallon) and a typical system (90% AFUE propane furnace (condensing up to 97%)), propane delivers heat at $32.44 per million BTU — roughly $2,920 per season for a 2,000 sq ft home in a cold climate, less in milder ones.
Is propane cheap compared to other heating fuels?+
It ranks #6 of 7 common heating options by cost per delivered BTU at national-average prices. Rural gas-in-a-tank: burns clean in high-efficiency furnaces but carries fewer BTU per gallon than oil — and usually costs more per BTU than both gas and oil.
What are the downsides of heating with propane?+
Among the most expensive common fuels per BTU. Tank lease terms can lock you to one supplier.