Propane vs Electric Heat: Cost Comparison
See what a propane furnace, electric baseboard heat and a heat pump would cost to run in the same home, and the electricity price at which propane breaks even.
Propane in Connecticut, winter (Oct–Mar)
Cold-climate heat pump is cheapest: $1,356 per winter
Same home, same weather, each system at its own efficiency
| Cold-climate heat pump | $1,356 | 4,809 kWh · $0.282/kWh · seasonal COP 3.1 | |
|---|---|---|---|
| Propane | $2,920 | 690 gallons · $4.233/gal · AFUE 0.8 | |
| Electric baseboard | $4,171 | 14,791 kWh · $0.282/kWh · 100% |
Break-even electricity price
Propane costs the same as baseboard heat when electricity is 19.7¢/kWh and the same as the heat pump at 60.7¢/kWh (seasonal COP 3.1). Your electricity price here is 28.2¢/kWh.
Assumptions
- Home: 2,000 sq ft, average insulation.
- Weather: 5,047 heating degree days for Connecticut (NOAA 1991–2020 normals, winter (Oct–Mar)).
- Useful heat needed: 50 million BTU.
- Heating oil: $6.094/gal (EIA Connecticut average, week of Oct 12, 2026).
- Propane: $4.233/gal (EIA Connecticut average, week of Oct 12, 2026).
- Natural gas: $2.25/therm (EIA Connecticut, latest month (May 2026)).
- Electricity: $0.282/kWh (EIA Connecticut 12-month average to Jul 2026).
Estimates only, based on average prices and typical weather. Your actual cost depends on your home, equipment, usage and local supplier. Not financial or engineering advice.
Cost per million BTU
To compare fuels sold in gallons and kilowatt-hours, we convert each to dollars per million BTU of useful heat: price ÷ (BTU per unit × efficiency) × 1,000,000. Propane has 91,452 BTU per gallon and electricity has 3,412 BTU per kWh. Baseboard heaters are 100% efficient; a heat pump delivers more than one unit of heat per unit of electricity.
Propane, baseboard and heat pump by state
Dollars per million BTU of useful heat for the typical home in states with a propane price. Propane furnace at AFUE 0.80; heat pump is cold-climate.
| Alabama | $48.32 | $48.32 | $13.35 |
| Arkansas | $32.52 | $39.46 | $11.38 |
| Colorado | $30.92 | $48.51 | $16.19 |
| Connecticut | $57.86 | $82.65 | $26.87 |
| Delaware | $50.97 | $52.64 | $15.96 |
| Florida | $66.22 | $45.16 | $11.12 |
| Georgia | $42.80 | $44.16 | $12.16 |
| Idaho | $35.88 | $37.13 | $12.14 |
| Illinois | $26.02 | $55.61 | $19.11 |
| Indiana | $34.03 | $50.03 | $16.58 |
| Iowa | $22.79 | $41.25 | $15.06 |
| Kansas | $27.58 | $44.28 | $14.10 |
| Kentucky | $38.13 | $41.01 | $12.58 |
| Maine | $48.33 | $85.82 | $31.41 |
| Maryland | $52.81 | $65.39 | $19.88 |
| Massachusetts | $47.84 | $89.07 | $29.29 |
| Michigan | $32.69 | $61.55 | $21.21 |
| Minnesota | $26.84 | $47.57 | $19.21 |
| Mississippi | $41.88 | $43.75 | $11.97 |
| Missouri | $29.10 | $40.71 | $13.11 |
| Montana | $29.26 | $40.82 | $14.42 |
| Nebraska | $23.48 | $37.80 | $13.13 |
| New Hampshire | $52.12 | $78.44 | $27.73 |
| New Jersey | $54.51 | $69.19 | $21.64 |
| New York | $50.34 | $83.12 | $27.42 |
| North Carolina | $48.85 | $43.58 | $12.37 |
| North Dakota | $22.51 | $36.73 | $15.52 |
| Ohio | $35.74 | $53.62 | $17.67 |
| Oklahoma | $31.77 | $39.94 | $11.78 |
| Pennsylvania | $43.64 | $60.81 | $19.56 |
| Rhode Island | $55.94 | $86.15 | $27.70 |
| South Dakota | $24.93 | $41.83 | $15.59 |
| Tennessee | $44.07 | $40.03 | $11.80 |
| Texas | $42.37 | $46.90 | $12.39 |
| Utah | $31.34 | $39.00 | $12.75 |
| Vermont | $50.45 | $70.02 | $25.51 |
| Virginia | $50.75 | $48.52 | $14.50 |
| Wisconsin | $25.82 | $54.99 | $20.34 |
Frequently asked questions
Is propane or electric heat cheaper?
It depends on your propane price and your electric rate. Baseboard electric heat is usually the most expensive to run per unit of heat; a heat pump uses far less electricity. The calculator compares all three for your state.
What is cost per million BTU?
It is the price of one million BTU of useful heat delivered to your home after equipment efficiency. It lets you compare fuels sold in different units: gallons, kWh and therms.
What electricity price makes propane break even?
Divide your propane price per gallon by the useful BTU in a gallon (91,452 × your furnace AFUE) and multiply by 3,412 BTU per kWh. For a heat pump, multiply that by its seasonal COP. Your result shows both figures.
Does a heat pump work in cold weather?
Yes, but efficiency falls as it gets colder. We calculate it temperature by temperature using your state's normal weather; see the heat pump cost calculator for details.