The Advantages of Propane Gas Vs. Oil for Central Heating

Propane Heating

• Propane is used for central heating in over 14 million homes throughout the U.S. Many homes are located in areas that are not serviced by natural gas pipelines. Homeowners store the propane in above ground or underground tanks that they lease from propane dealers and suppliers. An average 1,500 square foot home home might use 1.5 million BTUs (British Thermal Units) of propane per month during the winter heating season. Propane is sold by the gallon, and the natural average cost per gallon was $2.86 as of March 2011, according to Propane Prices.com.

Heating Oil

• Heating oil is used in about 10 million homes in the U.S., according to the National Oilheat Research Alliance (NORA). The majority of homes that use heating oil are located in the Northeastern region of the U.S. The grade of oil classified for residential heating is referred to as No. 2 oil heat. Heating oil represented the “new energy alternative” and replaced coal for heating in the Northeast and other areas during the 1960s. In addition to heating, oil is used for heating water for bathing, laundry, dishwashers and cooking purposes. The average price per gallon of heating oil stood at $3.74, according to the U.S. Energy Information Administration, as of August 9, 2011.

Propane Advantages

• Propane is an approved, clean fuel, listed on the federal 1990 Clean Air Act. It burns cleaner than oil and exhausts less hazardous emissions and byproducts into the atmosphere. In fact, many of the newer propane-fueled boilers and furnaces do not require a chimney, while furnaces fueled by heating oil do require connections to chimneys to ventilate and exhaust emissions. Propane is also refined from natural gas in the U.S., and is therefore not dependent of exportation from foreign suppliers, as is the case with heating oil. Propane use can also be more easily retrofitted with natural gas appliances, which makes costs for furnace and boiler equipment less than that of heating oil appliances.

Heating Oil Disadvantages

• Oil heat fuel is dependent on foreign oil, so prices can vary wildly not only within the heating season but can also swing within days of the week. In many cases, homes that use heating oil have older furnaces and boilers, which are not energy efficient. For example, a boiler or furnace that’s 20 years old might only have an efficiency of 50 or 60 percent. That means up to half of the energy the appliance uses is not converted into useable energy to heat the home. While new oil-fueled furnaces have Energy Star efficiency ratings of 70 to 85 percent, this is still less than propane furnaces, which have energy efficiency ratings that range from 70 to 98 percent.