PROPANE GAS HEATING COST versus ELECTRICITY

This article discusses propane heating costs as compared to electricity in DFW.  Al’s Plumbing, Heating & A/C, in Plano, Texas provides full service plumbing maintenance, repairs and replacements for every plumbing component in your home.  Al’s sells and installs Rheem Professional Series gas & electric water heaters, and tankless water heaters.  Al’s Plumbing, Heating & A/C is near your home in Plano, Allen, and Frisco.  We service all homes in southern Collin and Denton Counties with no additional travel charge.

Why Is Your 1950’s – 1970’s DFW Home All Electric?

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 Gold “Medallion Home” — All-Electric Homes Were Built Late 1950’s To Early 1970’s.

There Are Several All-Electric Homes Communities In DFW

The “Live Better Electrically” & The Gold Medallion Home” were parts of a huge marketing campaign that began in the late 1950’s.  One goal was to increase electricity consumption so electricity generators would have more demand during the winter months.  The 2nd goal was to create a market for electric heating equipment as well as electric; water heaters, clothes dryers, and cooking appliances.   As this was also the time when new homes stated having air conditioning, a 3rd goal was to promote the purchase of central a/c or individual a/c units.   The LBE Campaign came at a good time, as many people were aware of how dirty coal heating was.  The LBE Campaign touted how clean an all-electric home was.  It also promoted the notion that an all-electric home was the apex of modern living.

What the LBE Campaign did not mention was how expensive an all-electric home is to heat.   Without the knowledge of the cost to heat with electricity, the campaign did a great job of getting new home buyers to want an all-electric home.  Of course, the marketing campaign said nothing about natural gas heat being just as clean + a much lower cost way to heat a home.  For homes in the deep south (such as south Florida) the extra cost to heat with electricity is not much of an issue.  However, DFW is too far north for electric heat to offer acceptable heating bills.

Click Here To Read More About The “Live Better Electrically” & “Gold Medallion Homes” Here: Dahp.Wa.Gov Gold Medallion Homes Campaign

Click Here To View A “Live Better Electrically” TV Commercial:  “Live Better Electrically” TV Commercial

Gold Medallion Homes Communities Don’t Have Natural Gas Service

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THE BAD NEWS: Propane heating costs in DFW are higher than electricity.

THE GOOD NEWS: You can lower heating costs by up to 1/2 with an Electric Heat Pump + Supplemental Electric Heat From An Electric Furnace.

If you live in an all-electric homes neighborhood, there is no natural gas service available.  This may may leave you frustrated with the cost to heat your home with electricity.  You might also wonder if Propane Heating Costs would be lower.   If propane costs $2.40 per gallon, electric resistance heat is cheaper if electricity costs are 10 cents per KWH or less.

The average price per kWh in DFW is nearly 11 cents.  Using this link: Power2Switch.com  in Jan 2019, the site showed the per kWh rate for Bounce Energy Express Move 6 per kWh rate = 8.9 cents.  Note:  Look at the details for an electricity plan before choosing.

Propane Heating Costs In DFW — As Compared To An Electric Furnace Or Heat Pump 

Using The Calculator (link provided in SOURCE below):

• $795.00   For a 2,000 SF Home with 4 Occupants:  92% PROPANE GAS FURNACE: 325 gallons of Propane Gas @ $2.45 / Gallon = $795.00 **
• $648.00  For a 2,000 SF Home with 4 Occupants:  ELECTRIC FURNACE: = 6,485 kWh @ 10 cents / kWh = $648.00 **

• $338.00  For a 2,000 SF Home with 4 Occupants:  STAND. EFF. ELECTRIC HEAT PUMP =    3,388 kWh @ 10 cents / kWh = $338.00 **
• $305.00  For a 2,000 SF Home with 4 Occupants:  HIGH   EFF.   ELECTRIC HEAT PUMP =    3,045 kWh @ 10 cents / kWh = $305.00 **

** SOURCE: http://www.energydepot.com/ResidentialEnergyCalculator/

Why Propane Gas Is So Much More Expensive Than Natural Gas

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Shown: Propane Gas Storage Tank

We have demonstrated that propane heating costs are higher than heating with electricity in DFW.  These are the reasons why propane gas is so expensive.

Propane gas is a by-product created during the processing of crude oil & natural gas.  The processing of raw natural gas involves the removal of; propane, butane and ethane in order to prevent condensation of these elements in natural gas pipelines.   After propane gas is gathered from oil fields deep within the earth, it is separated from other petrochemicals and refined for sale.

Propane gas price is largely influenced by the cost of crude oil.  This is because propane competes mostly with crude-oil based fuels (such as heating oil).    Also, a significant portion of propane gas price is the expense generated to deliver it by truck.

Propane supply & demand is subject to production changes,  weather, and inventory levels.  While propane production is not seasonal, residential heating demand for propane gas is highly seasonal.  Propane production is relatively steady rate year-round, so there is no source of increased production if propane supplies run low.   Propane prices occasionally spike due to normal supply/demand fluctuations.  This is due to the difficulty of obtaining additional propane gas supply during the peak heating season.

Since propane gas is stored at the location where it will be used, purchases of propane can be planned.  Many propane gas customers can delay purchases when prices are highest.  This brings supply & demand more into balance at any specific time of the year.   Because propane prices can change significantly from month to month & season to season, customers can save money by paying attention to price trends and makign purchases when the price is lower — versus waiting until peak heating season when demand is higher than supply.

Heat Pumps Can Lower Heating Cost By Up To 1/2

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A Heat Pump Is A Central A/C Outdoor Unit That Runs In Reverse To Move Heat Into The Home During Winter. 

You have an option that will lower electric heating costs by as much as half.  Replace your electric furnace HVAC System with a Heat Pump HVAC System (which includes an electric furnace that’s used only when the Heat Pump cannot provide enough heat to meet your needs).   When outdoor temps drop below freezing, it’s common for the HVAC System to add some heat from the electric furnace — until outdoor temps rise again.

Once above freezing, most Heat Pumps can typically provide all the heat the home needs.  The cost to extract heat from outdoor air, and moving that heat into the home, is much lower than creating heat with electricity.

Click On The Links Below To Learn More About Heat Pumps:

AlsPlumbing.com Lower Heating Costs With An Energy Star Rated Heat Pump

AlsPlumbing.com Heat Pump Benefits (Part 1 of 4)

AlsPlumbing.com Heat Pump Benefits (Part 2 of 4)

AlsPlumbing.com Heat Pump Probems (Part 3 of 4)

AlsPlumbing.com Heat Pump Characteristics (Part 4 of 4)

Al’s Plumbing, Heating & A/C, in Plano, Texas provides full service plumbing maintenance, repairs and replacements for every plumbing component in your home.  Al’s sells and installs Rheem Professional Series gas & electric water heaters, and tankless water heaters.  Al’s Plumbing, Heating & A/C is near your home in Richardson, Garland, and northeast Dallas, Texas. We service all homes in southern Collin and Denton Counties with no additional travel charge.