Hi gang- I need to make a decision on my new house in the country- propane or electric. Up until recently, natrual gas has historically been the cheapest to use. I’m using 5 1/2″ SIP wall panels, and 9 1/2″ roof panels, and good windows.
The gas salesman said I needed to analyze the BTU capability of each method. But both prices fluctuate, wildly, I might add.
Is there a more sensible way to make this decision?
Macco
Replies
Macco,
The price of propane doesn't fluctuate much, and is typically cheaper than NG, and almost always way cheaper than electric. Just a slight hassle to get re-filled.
Jon
electric is cheaper if you use a heat pump, still lower energy cost if you use ground source.
You need to check with your local utility. Electric rates seldom fluctuate, for residential customers beyond a set rate schedule.
LP will fluctuate some, but not wildly. Usually you can contract for a set price in the summer for the following heating season.
The construction of your house has nothing to do with the relative costs of various fuels. Seldom is electricity an economic choice for heating, ground source heat pumps being and exception. If you want forced air or hot water heat, without the GSHP the cost (assuming a 90+% furnace) is that $1.00/gal LP is approximately equal to $0.035/kWh for heat. GWH and most boilers are less efficient.
If you live in a moderate climate, where winter lows are sedom below 0, a standard heat pump is also worth considering. Comparing the cost of operating a heatpump vs burning a fossil fuel is not a simple project to get an accurate number. The perfomance of the heating cycle varies with outside temps, the cost for a given amount of heat at a given set of condition would also be dependent of the efficiency of the unit.
What Timbo said. Pure resistive heating is rarely a good choice, except relatively far south where it's just used to "de-chill". An electric heat pump may be a good choice, but efficiency is inversely related to the difference between inside and outside temperatures, so it's not the best choice in the Frozen North (unless you have arrangements for propane "emergency" heat).
Your electric co will have all sorts of special deals on electric heat. These won't make electric heat practical when it's totally impractical, but they can be a "deal maker" when things are marginal.
when I had my trailer, propane was 97 cent a gallon. so 100 dollar would fill the tank. one cold winter it jump to $2. 85 a gallon in two week time. so only half the tank could be filled. Since the propane dealer owns the tanks you cannot shop around. I was cold that winter. at least with electric, they cannot raise the rate without a act of congress ( Bob, that was a method of speech) so electricity usually stay pretty flat. propane they can raise whenever they want. I also installed a wood stove as back up. also propane goes BOOM real easy.
When we first moved into our place here in the fall of '76 they weren't allowing new NG hookups, so we got propane. The tank was filled in the spring for the last time, just before the weather turned warm, and we got NG hooked up around about September, so never used any of the propane. They came and pumped it out and paid us for the propane and we made a tidy profit, since the price had about doubled over the summer.
Thoses things sound sweet. What are the electrical requirments?
Jason
"I get power at 4.6 cents per kilowatt hour from 9pm to 5am plus same rate for an extra couple of hours during the afternoon in the winter months. That is less than half the normal KWH rate here. I also installed an 80 gallon water heater on a timer that only lets it kick on during the low rate hours."
This is way it is CRITIC to check with the local power companies for there rates and plans.
I am near K.C. Here rates for the first increment of use is about 7 cents 24x7x365. After the first increment there are 2 more.
Durring the summer the rates increase with more usage and peak out at 10 cents. During the other 9 months they decrease and valley out at 3.4 and if you use electric (either resistive or heatpump) as the primary heat source there is an other 10% reduced in the rates.