Blog Furnace Natural gas vs Propane furnace: Running Cost Comparison Key Takeaways Natural gas is often cheaper per BTU, especially where it’s accessible through municipal lines, while propane can be costlier but provides more heat per unit due to its higher energy content. While natural gas may be favored in urban areas, propane offers reliability in remote locations. Initial installation costs vary, with natural gas requiring a connection to a gas line and propane needing a storage tank. Long-term considerations include maintenance, durability, and resale value. Ultimately, the choice depends on individual needs, preferences, and local availability, with HVAC experts offering tailored advice. 2024-05-15 // 9 min Read Asif Engineer-in-Training & Apprentice The cost is usually the first thing that comes to mind when homeowners think about their home heating alternatives. The choice between natural gas and propane is a big one that affects both the environment and how much you pay in the long run. In this article, we’re doing a comparison of both of these furnace types and talking about which one is more expensive and why. Factors Affecting Running Costs for Natural Gas and Propane Furnaces 1. Fuel PricesNatural Gas: Natural gas is a more economical heating fuel alternative to propane in regions where it is easily accessible through municipal lines because its price per BTU is usually lower. But, fuel supply and demand, particularly during cold spells, as well as changes in regulatory laws, can cause natural gas prices to fluctuate.Propane: Propane gas is typically more costly than natural gas per British thermal unit. Propane costs can still be higher, especially in areas where propane has to be supplied and stored in a storage tank, which adds logistical difficulties, even though it delivers higher efficiency owing to its increased BTU production per unit. 2. Energy Efficiency Ratings (AFUE)Natural Gas Furnaces: For natural gas furnaces, the current AFUE ratings range from 89% to 98%. Fuel savings from higher efficiency ratings more than make up for the expense of fuel.Propane Furnaces: With AFUE ratings of up to 98%, propane furnaces are just as efficient as natural gas furnaces. In terms of total heat production, even very efficient propane furnaces can frequently surpass because of the higher energy content per gallon. 3. Home InsulationBy lowering the quantity of heat required and, by extension, the fuel consumed, effective insulation has a comparable effect on both kinds of furnaces. By reducing the amount of fuel needed to maintain a constant temperature, homes with good insulation can make natural gas and propane systems work more efficiently. 4. Furnace Size and Home LayoutNatural Gas Furnaces: For natural gas furnaces, sizing is key; inefficiency and higher expenses might result from a furnace that is either too big or too small. To ensure the furnace capacity is an exact fit for the requirement, proper system design must take the entire home’s layout and volume into account.Propane Furnaces: The proper size of propane furnaces is equally important as that of natural gas furnaces. On the other hand, if the furnace is too big and turns on and off too frequently due to the propane being stored on-site in a propane tank, sizing errors might result in more frequent refills and increased expenses. 5. Maintenance and UpkeepFor optimal functioning, both propane and natural gas furnaces need to be serviced regularly. When one is neglected, it might result in less efficient functioning and increased fuel expenses. Adding to the list of maintenance jobs, propane furnaces may necessitate extra inspections to ensure the safety of the tank and connections. 6. Local ClimateNatural Gas Furnaces: Generally speaking, natural gas processing furnaces work well in most climates, but they really shine in regions where the fuel is both inexpensive and plentiful. But the constant running of the furnace can be taxing in extremely cold temperatures.Propane Furnaces: These units provide reliable performance even in extreme weather, and propane doesn’t gel at low temperatures, making them ideal for use in cold locations. Because of this, they work especially well in colder or more remote areas. 7. Ventilation and DuctworkBoth types of furnaces can have their efficiency reduced by inefficient ductwork. Regardless of the fuel type, it is necessary to remove duct leaks or open cracks to prevent uneven heating, increased operational expenses, and considerable energy losses. 8. Thermostat SettingsEither type of furnace can benefit from the optimal thermostat settings. A programmable thermostat is a useful tool for managing the operating expenses of propane and natural gas heating systems because it allows users to save heating costs by altering temperatures according to daily and nighttime needs. Comparing Running Costs: Propane vs natural gas furnace Initial Setup and Installation Costs The upfront costs of installing a natural gas or propane furnace, as well as the cost of purchasing the device, are substantial. Depending on the model's efficiency and features, the average installation cost for either type of furnace might vary from $3,000 to $5,500. On the other hand, every fuel type has its own unique considerations:Natural Gas:During installation, a natural gas line is extended to the furnace. An easy and often inexpensive connection may be required in densely populated areas with existing compressed natural gas connections. On the other hand, the expense can skyrocket—possibly by thousands of dollars—if a new gas line needs to be laid, and that number depends on how far away from the main line it is and how complicated the job is to install the natural gas appliances.Propane:Liquefied petroleum gas storage tanks, which can be rented or bought, need to be installed for this purpose. The monthly rental fees are eliminated when you buy the tank, which adds to the upfront cost (about $500 to $2,500 depending on the size). There may be extra labor and materials needed for installation if the fossil fuel tank and furnace connections need to be set up. Fuel Costs and Efficiency Fuel prices and system efficiency, as assessed by the AFUE rating, are major factors in furnace operating expenses.Fuel Prices:Liquefied natural gas, according to recent data, costs around $1.73 CAD per gigajoule, and propane, around $1.23 CAD per liter, plus an average delivery fee of $10 to $12. Natural gas is usually more cost-effective when expressed as BTU per dollar, even after accounting for its energy content. Propane may be more expensive per gallon, but it can make up for it in efficiency—using less fuel to provide the same amount of heat—thanks to its greater BTU per cubic foot.Efficiency:Both forms of fuel can be used by modern, high-efficiency furnaces, which can reach AFUE values of over 90%. With a higher efficiency rating, more of the fuel is turned into useful heat, which means less fuel is used and costs less in the long run. You can reduce the impact of the higher fuel expenses by opting for a propane furnace, which often has somewhat better efficiency ratings than its natural gas counterparts. Long-Term Costs and Savings Not only should yearly running costs be factored in, but also long-term expenditures like repair, maintenance, and replacement:Maintenance:Depending on the model, yearly inspections and maintenance for both furnace types might cost anywhere from $100 to $200. The requirement to inspect and maintain the tank and its connections can lead to slightly greater maintenance costs for propane units.Durability and Lifespan:Both types of furnaces usually have a lifespan of 15–20 years, with the exact number depending on how well they are maintained. Nevertheless, unexpected expenses may accumulate over the system's lifetime due to the necessity to fix gas lines or replace propane tanks.Resale Value and Popularity:Homebuyers in urban and suburban locations may be more interested in purchasing a property with a natural gas furnace installed because of the perceived ease and reduced operating expenses. Check out Comfort Union for precision installation Efficiency meets expertise! 💪✨ Our team at Co Choosing the perfect tankless water heater isn't j Annual water heater flushing isn’t just a mainte Load More Follow on Instagram We’re the Smart ChoiceWhy Choose Us? For starters, we will show up on time with a fully stocked service van, eager to resolve your heating, cooling, plumbing or electrical problem. Contact Us Glen R17:46 07 Sep 24I recently had the pleasure of working with Comfort Union Heating and Plumbing, and I can’t say enough about the exceptional service I received. Led by Asif, the team was incredibly meticulous in their work, ensuring that every detail was attended to.Their attention to detail and commitment to quality work were evident from start to finish. If you’re looking for reliable and skilled service in heating and plumbing, I highly recommend Comfort Union Heating and Plumbing. Thank you, Asif, Muhammad and the team, for a great experience!Chris Ellett13:28 06 Sep 24I had a great experience with comfort union. Even over the long weekend they answered the phone, and were there the next day to replace my hot water tank. Moe called in the morning to give me an ETA and then a text when he was actually on the way. He was thorough, friendly, knowledgeable and would use this family run business againBerta Sipos02:20 05 Sep 24Amazing service Asif, Mo and Daryl. Thank you Comfort Union! On Friday evening our hot water tank stoped working. We e- mailed Comfort Union in 30 minutes they called us back. Very professional and friendly staff. Friday evening we had our quote. Very detailed and clear. On Saturday morning they called to see if we have any questions. The price was very reasonable. We booked the service and that afternoon we had a brand new hot water tank installed. We were very pleased and we highly recommend Comfort Union. These three young man were just amazing! Thank you again.Samiur20:24 04 Sep 24Professional, competitive and immediate service. Installed a new heat pump from them and it was good experience. Highly recommend.Charles Kabano19:12 01 Sep 24Comfort Union just finished up HVAC work for the secondary suite basement for us in Airdrie, and I gotta say, these guys did a fantastic job. They installed a new Carrier furnace, moved our old Trane to a different spot, and hooked us up with a Lennox AC. Everything was smooth, and they really knew what they were doing.I love that they’re a family business—and really care about their work and their customers. The crew was super friendly and easy to talk to, and they made sure to explain everything along the way. The new furnace and AC are working great, and moving the old unit seemed like no big deal for them.Overall, just a great experience. If you need any HVAC work done in Airdrie, these are the people to call. Can’t recommend Comfort Union enough!Kyle21:57 29 Aug 24Vic DePaz01:09 28 Aug 24Comfort Union team was awesome to deal with and loved they are Calgary family run business. I will greatly recommend them. Great work.Kathleen Vinluan01:26 24 Aug 24Quick and Reliable.Louis TSAKALAKIS18:22 15 Aug 24good job on timeMarcelina Hume16:48 29 Jul 24We recently had a heat pump installed by Comfort Union and couldn't be more pleased with their service. From the initial consultation to the completed job, the team was outstanding. They provided personalized recommendations and were mindful of our budget. I highly recommend Comfort Union to anyone seeking efficient and detail-oriented service.Thank you for your exceptional customer service and competitive rates!Michael Stuart23:54 11 Jul 24Thanks for a great job. Good workMd Zillur Rahman00:07 06 Jul 24My friend Muhamad Ayoob khan is very knowledgeable and professional person. He takes every job very seriously. He is capable and knows what he is doing. You can rely on him for your HVAC needs.Batool Rizvi06:24 01 Jul 24Excellent service, very reasonable cost. Always recommended.Shabeeb Rizvi06:23 01 Jul 24I recently had a Gree heat pump and Carrier furnace installation by Comfort Union, and I'm really happy with the results. The Gree heat pump is very quiet and the Carrier furnace works great.I highly recommend Comfort Union for HVAC work in Calgary. Their expertise and dedication are impressive. Good work!jaweda zaidi00:44 01 Jul 24Juan Guerrero14:56 28 Jun 24Great service, highly recommend Comfort Union for HVAC repair and installation services in Calgary!sreekumar cngr19:41 22 Jun 24Sidharth Narula00:08 21 Jun 24"5/5 stars! I'm highly impressed by the exceptional service I received from Comfort Union on a weekend! As a family of plumbers, engineers, and soldiers, they brought a unique combination of skills and discipline to the job, replacing my water heater tank with complete satisfaction and professionalism. Their expertise, efficiency, and courtesy were truly outstanding. I highly recommend Comfort Union for any plumbing needs. Thank you for a job exceptionally well done!" Conclusion A person’s preference for environmental impact, the cost of installation and ongoing maintenance, and the availability of natural gas should be the primary considerations when deciding to go for a propane or natural gas furnace. Natural gas may be the more practical and economical choice for people living in places with existing natural gas pipelines or natural gas tanks, but propane provides a dependable and efficient heating option for people in more remote regions.When making a decision, homeowners should think about the long-term effects as well as the short-term effects, such as whether they will save money with more efficient models or qualify for government subsidies for units with higher efficiency ratings. If you want advice that’s unique to your home and area, it’s a good idea to consult with an HVAC expert, such as those at Comfort Union. Share this: In this Article Share this: Related Posts How Much Does Furnace Replacement Cost in 2024? Coleman Furnaces troubleshooting tips & error codes How to Reset Your Goodman Furnace – Step-by-Step Guide What is the average gas furnace replacement cost in Canada? Locating the arrow: Which way does air filter go in furnace? LEARN MORE ABOUT OUR CONTRIBUTOR Asif Engineer-in-Training & Apprentice Asif is the driving force behind Comfort Union. Growing up, he learned the ropes of engineering and trades from his dad, sparking his entrepreneurial spirit. With a master's in Software Engineering from the University of Calgary and degrees in both Commerce (Accounting) and Chemical Engineering, Asif is a rare mix… Related Posts How Much Does Furnace Replacement Cost in 2024? Being in the HVAC business, we understand that the decision to replace a furnace is significant and must be carefully done. Keeping warm during the harsh Canadian winters is important, but so is the large financial commitment that we must make and consider before going through with the replacement. There are a number of things to think about that affect the upfront and ongoing expenses of a new furnace. By Asif in Furnace on May 15, 2024 Coleman Furnaces troubleshooting tips & error codes Coleman - best known for their strong build and highly efficient devices is one of the most popular choices in Canada for homeowners. Whether it is a furnace, air conditioner, or any other device - they're at the forefront. By Asif in Furnace on May 17, 2024 How to Reset Your Goodman Furnace – Step-by-Step Guide Modern furnaces incorporate extensive monitoring of both combustion processes and safety conditions. If a furnace fails to initiate the ignition process or detects a potential safety hazard, it may automatically enter a “lockout mode” to prevent damage or unsafe operation. By Asif in Furnace, Heating on February 9, 2024 What is the average gas furnace replacement cost in Canada? Installing a new gas furnace in your home is a big deal and can have major cost implications, but it will pay for itself in increased home comfort, less energy consumption, and lower heating bills. If you're thinking about getting a new gas furnace, you've come to the right place! We've written the perfect guide for you to understand the furnace installation costs in Canada, with a focus on your specific city. By Asif in Furnace on May 15, 2024 Locating the arrow: Which way does air filter go in furnace? Although it may appear to be a simple task, ensuring that the air filter is installed in the right furnace filter direction is crucial for keeping the airflow effective and improving the air quality inside. As HVAC professionals, we've witnessed firsthand how improper installation can drastically reduce a system's performance. By Asif in Furnace on May 15, 2024 Table of content In the Article
The cost is usually the first thing that comes to mind when homeowners think about their home heating alternatives. The choice between natural gas and propane is a big one that affects both the environment and how much you pay in the long run. In this article, we’re doing a comparison of both of these furnace types and talking about which one is more expensive and why. Factors Affecting Running Costs for Natural Gas and Propane Furnaces 1. Fuel PricesNatural Gas: Natural gas is a more economical heating fuel alternative to propane in regions where it is easily accessible through municipal lines because its price per BTU is usually lower. But, fuel supply and demand, particularly during cold spells, as well as changes in regulatory laws, can cause natural gas prices to fluctuate.Propane: Propane gas is typically more costly than natural gas per British thermal unit. Propane costs can still be higher, especially in areas where propane has to be supplied and stored in a storage tank, which adds logistical difficulties, even though it delivers higher efficiency owing to its increased BTU production per unit. 2. Energy Efficiency Ratings (AFUE)Natural Gas Furnaces: For natural gas furnaces, the current AFUE ratings range from 89% to 98%. Fuel savings from higher efficiency ratings more than make up for the expense of fuel.Propane Furnaces: With AFUE ratings of up to 98%, propane furnaces are just as efficient as natural gas furnaces. In terms of total heat production, even very efficient propane furnaces can frequently surpass because of the higher energy content per gallon. 3. Home InsulationBy lowering the quantity of heat required and, by extension, the fuel consumed, effective insulation has a comparable effect on both kinds of furnaces. By reducing the amount of fuel needed to maintain a constant temperature, homes with good insulation can make natural gas and propane systems work more efficiently. 4. Furnace Size and Home LayoutNatural Gas Furnaces: For natural gas furnaces, sizing is key; inefficiency and higher expenses might result from a furnace that is either too big or too small. To ensure the furnace capacity is an exact fit for the requirement, proper system design must take the entire home’s layout and volume into account.Propane Furnaces: The proper size of propane furnaces is equally important as that of natural gas furnaces. On the other hand, if the furnace is too big and turns on and off too frequently due to the propane being stored on-site in a propane tank, sizing errors might result in more frequent refills and increased expenses. 5. Maintenance and UpkeepFor optimal functioning, both propane and natural gas furnaces need to be serviced regularly. When one is neglected, it might result in less efficient functioning and increased fuel expenses. Adding to the list of maintenance jobs, propane furnaces may necessitate extra inspections to ensure the safety of the tank and connections. 6. Local ClimateNatural Gas Furnaces: Generally speaking, natural gas processing furnaces work well in most climates, but they really shine in regions where the fuel is both inexpensive and plentiful. But the constant running of the furnace can be taxing in extremely cold temperatures.Propane Furnaces: These units provide reliable performance even in extreme weather, and propane doesn’t gel at low temperatures, making them ideal for use in cold locations. Because of this, they work especially well in colder or more remote areas. 7. Ventilation and DuctworkBoth types of furnaces can have their efficiency reduced by inefficient ductwork. Regardless of the fuel type, it is necessary to remove duct leaks or open cracks to prevent uneven heating, increased operational expenses, and considerable energy losses. 8. Thermostat SettingsEither type of furnace can benefit from the optimal thermostat settings. A programmable thermostat is a useful tool for managing the operating expenses of propane and natural gas heating systems because it allows users to save heating costs by altering temperatures according to daily and nighttime needs. Comparing Running Costs: Propane vs natural gas furnace Initial Setup and Installation Costs The upfront costs of installing a natural gas or propane furnace, as well as the cost of purchasing the device, are substantial. Depending on the model's efficiency and features, the average installation cost for either type of furnace might vary from $3,000 to $5,500. On the other hand, every fuel type has its own unique considerations:Natural Gas:During installation, a natural gas line is extended to the furnace. An easy and often inexpensive connection may be required in densely populated areas with existing compressed natural gas connections. On the other hand, the expense can skyrocket—possibly by thousands of dollars—if a new gas line needs to be laid, and that number depends on how far away from the main line it is and how complicated the job is to install the natural gas appliances.Propane:Liquefied petroleum gas storage tanks, which can be rented or bought, need to be installed for this purpose. The monthly rental fees are eliminated when you buy the tank, which adds to the upfront cost (about $500 to $2,500 depending on the size). There may be extra labor and materials needed for installation if the fossil fuel tank and furnace connections need to be set up. Fuel Costs and Efficiency Fuel prices and system efficiency, as assessed by the AFUE rating, are major factors in furnace operating expenses.Fuel Prices:Liquefied natural gas, according to recent data, costs around $1.73 CAD per gigajoule, and propane, around $1.23 CAD per liter, plus an average delivery fee of $10 to $12. Natural gas is usually more cost-effective when expressed as BTU per dollar, even after accounting for its energy content. Propane may be more expensive per gallon, but it can make up for it in efficiency—using less fuel to provide the same amount of heat—thanks to its greater BTU per cubic foot.Efficiency:Both forms of fuel can be used by modern, high-efficiency furnaces, which can reach AFUE values of over 90%. With a higher efficiency rating, more of the fuel is turned into useful heat, which means less fuel is used and costs less in the long run. You can reduce the impact of the higher fuel expenses by opting for a propane furnace, which often has somewhat better efficiency ratings than its natural gas counterparts. Long-Term Costs and Savings Not only should yearly running costs be factored in, but also long-term expenditures like repair, maintenance, and replacement:Maintenance:Depending on the model, yearly inspections and maintenance for both furnace types might cost anywhere from $100 to $200. The requirement to inspect and maintain the tank and its connections can lead to slightly greater maintenance costs for propane units.Durability and Lifespan:Both types of furnaces usually have a lifespan of 15–20 years, with the exact number depending on how well they are maintained. Nevertheless, unexpected expenses may accumulate over the system's lifetime due to the necessity to fix gas lines or replace propane tanks.Resale Value and Popularity:Homebuyers in urban and suburban locations may be more interested in purchasing a property with a natural gas furnace installed because of the perceived ease and reduced operating expenses. Check out Comfort Union for precision installation Efficiency meets expertise! 💪✨ Our team at Co Choosing the perfect tankless water heater isn't j Annual water heater flushing isn’t just a mainte Load More Follow on Instagram We’re the Smart ChoiceWhy Choose Us? For starters, we will show up on time with a fully stocked service van, eager to resolve your heating, cooling, plumbing or electrical problem. Contact Us Glen R17:46 07 Sep 24I recently had the pleasure of working with Comfort Union Heating and Plumbing, and I can’t say enough about the exceptional service I received. Led by Asif, the team was incredibly meticulous in their work, ensuring that every detail was attended to.Their attention to detail and commitment to quality work were evident from start to finish. If you’re looking for reliable and skilled service in heating and plumbing, I highly recommend Comfort Union Heating and Plumbing. Thank you, Asif, Muhammad and the team, for a great experience!Chris Ellett13:28 06 Sep 24I had a great experience with comfort union. Even over the long weekend they answered the phone, and were there the next day to replace my hot water tank. Moe called in the morning to give me an ETA and then a text when he was actually on the way. He was thorough, friendly, knowledgeable and would use this family run business againBerta Sipos02:20 05 Sep 24Amazing service Asif, Mo and Daryl. Thank you Comfort Union! On Friday evening our hot water tank stoped working. We e- mailed Comfort Union in 30 minutes they called us back. Very professional and friendly staff. Friday evening we had our quote. Very detailed and clear. On Saturday morning they called to see if we have any questions. The price was very reasonable. We booked the service and that afternoon we had a brand new hot water tank installed. We were very pleased and we highly recommend Comfort Union. These three young man were just amazing! Thank you again.Samiur20:24 04 Sep 24Professional, competitive and immediate service. Installed a new heat pump from them and it was good experience. Highly recommend.Charles Kabano19:12 01 Sep 24Comfort Union just finished up HVAC work for the secondary suite basement for us in Airdrie, and I gotta say, these guys did a fantastic job. They installed a new Carrier furnace, moved our old Trane to a different spot, and hooked us up with a Lennox AC. Everything was smooth, and they really knew what they were doing.I love that they’re a family business—and really care about their work and their customers. The crew was super friendly and easy to talk to, and they made sure to explain everything along the way. The new furnace and AC are working great, and moving the old unit seemed like no big deal for them.Overall, just a great experience. If you need any HVAC work done in Airdrie, these are the people to call. Can’t recommend Comfort Union enough!Kyle21:57 29 Aug 24Vic DePaz01:09 28 Aug 24Comfort Union team was awesome to deal with and loved they are Calgary family run business. I will greatly recommend them. Great work.Kathleen Vinluan01:26 24 Aug 24Quick and Reliable.Louis TSAKALAKIS18:22 15 Aug 24good job on timeMarcelina Hume16:48 29 Jul 24We recently had a heat pump installed by Comfort Union and couldn't be more pleased with their service. From the initial consultation to the completed job, the team was outstanding. They provided personalized recommendations and were mindful of our budget. I highly recommend Comfort Union to anyone seeking efficient and detail-oriented service.Thank you for your exceptional customer service and competitive rates!Michael Stuart23:54 11 Jul 24Thanks for a great job. Good workMd Zillur Rahman00:07 06 Jul 24My friend Muhamad Ayoob khan is very knowledgeable and professional person. He takes every job very seriously. He is capable and knows what he is doing. You can rely on him for your HVAC needs.Batool Rizvi06:24 01 Jul 24Excellent service, very reasonable cost. Always recommended.Shabeeb Rizvi06:23 01 Jul 24I recently had a Gree heat pump and Carrier furnace installation by Comfort Union, and I'm really happy with the results. The Gree heat pump is very quiet and the Carrier furnace works great.I highly recommend Comfort Union for HVAC work in Calgary. Their expertise and dedication are impressive. Good work!jaweda zaidi00:44 01 Jul 24Juan Guerrero14:56 28 Jun 24Great service, highly recommend Comfort Union for HVAC repair and installation services in Calgary!sreekumar cngr19:41 22 Jun 24Sidharth Narula00:08 21 Jun 24"5/5 stars! I'm highly impressed by the exceptional service I received from Comfort Union on a weekend! As a family of plumbers, engineers, and soldiers, they brought a unique combination of skills and discipline to the job, replacing my water heater tank with complete satisfaction and professionalism. Their expertise, efficiency, and courtesy were truly outstanding. I highly recommend Comfort Union for any plumbing needs. Thank you for a job exceptionally well done!" Conclusion A person’s preference for environmental impact, the cost of installation and ongoing maintenance, and the availability of natural gas should be the primary considerations when deciding to go for a propane or natural gas furnace. Natural gas may be the more practical and economical choice for people living in places with existing natural gas pipelines or natural gas tanks, but propane provides a dependable and efficient heating option for people in more remote regions.When making a decision, homeowners should think about the long-term effects as well as the short-term effects, such as whether they will save money with more efficient models or qualify for government subsidies for units with higher efficiency ratings. If you want advice that’s unique to your home and area, it’s a good idea to consult with an HVAC expert, such as those at Comfort Union. Share this:
