How Commercial Propane Can Help Lower Electricity Bills

Understanding propane heating and its cost compared to electricity can help determine if propane is the correct option for your business. In this guide, we look at the benefits of using propane and how to save money with propane heat.

What Is Propane Heating?

As the name suggests, propane heating uses gas to create heat and power appliances such as cookers, boilers, heaters, furnaces and tanked or tankless water heaters. Propane can also be compatible with central or zone heating and forced air or radiant systems. Propane or liquefied petroleum gas is a colorless, odorless, nontoxic liquid. An added smell helps people identify a spill or leak.

Propane is a versatile, reliable and efficient energy source. Though it is a fossil fuel, it produces fewer carbon emissions than other non-renewables like petroleum, diesel and natural gas. Propane also has a higher fuel-burning efficiency than natural gas, meaning it lasts longer and is more cost-effective in the long run.

What Is the Difference in Cost of Propane vs Electricity?

When comparing the cost of electricity and propane, you need to do some math. Propane’s energy content is in British thermal units, while electricity usage is in kilowatt-hours. One kWh equals 3,412 Btu. One gallon of propane equals 91,452 Btu. To determine how many comparable kWh of electricity propane can provide, divide 91,452 by 3,412. You’ll find one gallon of propane can generate the equivalent of nearly 27 kWh of electricity.

Knowing this formula, you can determine whether propane or electricity is cheaper. Look at your most recent electricity bill to find the price you pay per kWh. Multiply that by 27, the equivalent of a gallon of propane, then compare that to the current propane price. Remember that this is a rough estimate and comparison based on an ideal system. Several factors can impact this comparison, including the age of your appliances and the cost of electricity and propane in your region. Overall, propane tends to be a more cost-effective solution than electricity.

How Can Propane Heat Save You Money?

Propane heat is a more affordable heating option for your business. Propane is also highly versatile, helping you save money in the following ways.

1. Business Heating

Heating can make up a significant portion of your energy bill. With costs expected to continue rising, it is crucial to find ways to reduce energy use and cut your energy bill. Installing a propane heater, furnace or boiler can help you lower energy use while providing the same or even better heating standards.

2. Water Heating

Heating water requires considerable energy, making it another substantial contributor to energy bills. Propane water heaters operate more efficiently and with fewer emissions than other options. While the upfront installation costs of a propane tank are more expensive, a tankless water heater can pay for itself, save space and offer an endless hot water supply in the long run.

3. Cooking

Propane ovens and stoves are the first choice in industries like hospitality. Professional chefs and kitchens prefer propane ovens and stoves for their even flame and cooking temperature. While the initial cost of a propane stove and oven may cost more than a conventional electric stove, the long-term savings are significant. Further, they speed up cooking, with instant heat you can control. Propane stoves are also more reliable, as you can use them even when the power is out.

4. Backup Power

Having reliable, efficient and effective backup power is crucial for businesses. During a power outage, propane systems and generators will still work, reducing downtime and giving your business a significant competitive advantage. Further, propane backup generators can provide power to your most essential appliances and systems to ensure you can continue operating and living in relative comfort until the power comes back online.

5. Laundry

Washing laundry will be less expensive once you invest in a propane water heater. You can also save energy by investing in a matching dryer. It will heat to a higher temperature, helping dry clothes more quickly. Propane heaters are also efficient and use minimal fuel while heating, making them a cost-effective heating method.

6. Supplemental Heating

Retrofitting and upgrading your heating systems to run on propane can be a significant investment. Instead, start with propane heating appliances. You can use them to heat rooms and dry laundry rather than using electric devices. Consider using propane fireplaces, space heaters, dryers and stoves to heat your business. You can then turn down your thermostat and rely less on electrical appliances, which can help lower your energy bills.

Additionally, you can use propane appliances to heat specific rooms rather than your entire facility. They are safer than coal and wood, with fewer emissions. Propane appliances immediately start cooling when you switch them off. There is no need to worry about hidden embers that may be a safety concern.

7. Tax Credit

Because a propane heating system is an energy-efficient upgrade, it can help you qualify for a tax credit.

Should You Switch to Propane Heating? 

Propane fuel has noteworthy benefits for business owners. Here are six reasons to consider using it.

1. High performance: A high-efficiency propane heater can be up to 98% efficient and heats air to nearly 140 degrees Fahrenheit, which is higher than most electrical heating systems. Propane appliances also heat food or water on demand, saving you time and money.
2. Versatile: Propane can power appliances like stoves, ovens, furnaces, boilers, water heaters, clothes heaters, space heaters and generators.
3. Safe: Propane is a nontoxic and non-poisonous fuel. It is also safe to use, especially when installed and maintained by professionals. Several built-in features make propane systems even safer.
4. Reliable: Propane is reliable. You can still heat your business or cook with propane appliances when the power goes out. Enrolling in a propane refill program ensures you will always have fuel.
5. Cost-effective: As propane is an efficient fuel, it can last longer, making it more affordable than other energy sources. You can also receive tax credits and incentives for implementing propane systems.
6. Eco-friendly: Propane vaporizes in the air, so it won’t contaminate air and water systems. It also has one of the lowest carbon emissions rates of all fossil fuels.