Cost per million BTU delivered
Using national averages (early 2026):
- Natural gas (95% AFUE): ~$15/MMBtu
- Propane (90% AFUE): ~$30-$38/MMBtu
- Electric resistance (100%): ~$50/MMBtu
- Heat pump (HSPF 10): ~$17/MMBtu
When electric wins
- You have very cheap hydro electricity (PNW, parts of TN, NY).
- You only heat a small space part-time.
- Propane delivery is unreliable or very expensive in your area.
When propane wins
- You're already piped or tanked for propane.
- Electricity is $0.20+/kWh in your area.
- You need very high heat output for a poorly-insulated old house.
The third option that beats both
A modern cold-climate heat pump uses electricity but moves 2.5-3.5× the heat per kWh than resistance heat. In most regions it beats both propane and electric resistance on operating cost. See the mini split vs baseboard guide for the math.
Lock in propane prices
Propane spot prices typically dip 20-30% in summer. Lock-in or pre-buy contracts can save $200-$500/year on a typical heating account.
Try the calculator
Propane vs Electric Heat Calculator
Compare yearly heating cost of propane and electric resistance heat.
DIY safety & liability notice
This guide is for general information only. Any work you do on your home is at your own risk. Energy Savings Toolkit is not responsible for improper installation, property damage, or injury. Follow product instructions and local codes, and hire a licensed professional for electrical, gas, HVAC, roofing, or structural work. See our Disclaimer.