Operating Cost Comparison: Heat Pump vs Natural Gas vs Propane
Generally, in mild to moderate climates, high efficiency heat pumps will cost the least to operate. Heating costs always depend on local electricity, gas, and propane prices, climate (colder climates cause heat pumps to use more energy during very freezing temperatures), and system efficiency (AFUE for furnaces, COP/HSPF for heat pumps).
For comparison purposes general area climates must be considered. In very cold climates heat pumps can struggle to keep up with the demand and rely more heavily on auxiliary heat mode which drives up energy costs.
Local Maryland Heating Cost Comparison: Heat Pump vs Natural Gas vs Propane
Maryland has a moderate‑cold winter climate, so all three systems operate differently here. There are fewer sustained periods of below 20 degrees as compared with Northernmost states.
Heat pumps are considered to be the most economical and best value overall in Maryland due to Winters being cold but not extreme, Electricity rates are moderate and Newer Heat Pumps maintain high efficiency in MD’s temperature range.
Key Cost Indicators
Heat Pump
- Efficiency: 200–400% (COP 2–4) for modulating, variable speed systems
- Best in moderate climates; efficiency drops in freezing temps when utilizing auxiliary heat
- Also provides air conditioning, reducing total annual energy cost
- Electricity rates determine operating cost,
- An high SEER, energy efficient heat pump generally has lower operating costs in mild to moderate climates
Natural Gas Furnace
- Efficiency: 80–95% AFUE
- Natural gas is typically the cheapest fuel per BTU
- Often cheaper than heat pumps in very cold climates
- Somewhat lower upfront cost than heat pumps
Propane Furnace
- Efficiency similar to natural gas (80–95% AFUE)
- But propane fuel cost is 2–3× higher than natural gas per BTU
- Typical heating cost: $90–$200/month
- In most moderate climates Heat pumps are most always the least expensive to operate.
This is primarily due to fewer prolonged deep cold spells, electricity prices + high efficiency being less costly than gas. - In cold northernmost climates:
Natural gas is usually cheapest
Heat pumps lose efficiency in sub‑freezing temps due to having to rely on auxiliary heat.
- Propane:
Almost always the most expensive option everywhere. It is typically only used where natural gas is unavailable.
Why some Homeowners Choose Propane for Heating
There are many reasons why homeowners choose Propane Heat over Natural Gas or Electric Heat Pumps in spite of the higher cost. The right choice depends mostly on your location, climate, and priorities, but propane does offer certain distinct advantages.
1. Higher Energy Output per Unit
Propane contains significantly more energy per unit than natural gas — about 91,500 BTU per gallon compared to natural gas at 1,030 BTU per cubic foot.
This means:
- Propane furnaces often deliver hotter supply air.
- Propane furnaces can heat a home faster, especially in colder climates.
2. Works Anywhere — No Pipeline Needed
The use of Natural gas requires a main pipeline connection. Propane is delivered by truck and stored in a tank on your property.
This makes propane desirable if:
- You live in a rural area.
- Gas lines aren’t available.
- You want energy independence from electric or gas utility companies.
3. More Reliable During Power Outages
Propane furnaces can still operate during power outages (with a small generator for the blower), while:
- Heat pumps stop working without electricity.
- Natural gas furnaces also need electricity for controls but still rely on the gas utility staying online.
4. Hotter, More Comfortable Heat Than Heat Pumps
Heat pumps are more efficient but produce cooler supply air, especially in freezing temperatures and rely on auxiliary heat during especially cold weather. Propane furnaces maintain consistent high-temperature heat, which many people find more comfortable in winter.
5. Better Cold‑Climate Performance
Heat pumps can struggle with very cold weather as temperatures drop and use more energy while employing auxiliary heat to keep up. Propane furnaces maintain full output regardless of outdoor temperature, making them a strong option for:
- Northern-most climates
- Homes with poor insulation
- Situations where you want guaranteed high heat output
6. Installation Flexibility
Propane systems don’t require gas lines or utility easements which simplifies installation and reduces constraints on rural properties.
When Propane Is the Best Choice
Propane can be the best option for homeowners who:
- Live in a rural or off‑grid area
- Want high heat output in a cold climate
- Prefer hot, fast heat over the gentler warmth of heat pumps
- Want independence from utility pipelines
- Need reliable heating during power outages
Conclusion
Every homeowner has to choose their best heating options for their region, budget and best availability. With new emerging technologies, higher than ever costs as factors, it is always wise to consider all options for heating your home.
Air Doctor Heating and Air offers Free quotes with 10 year parts and 10 year labor warranties. Contact Us, Call or Text 301-799-7200
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