What You’ll Learn
How can propane save me money?
Propane saves money in seven key areas of your home: heating, water heating, cooking, backup power, laundry, supplemental heating, and even through federal tax credits.
It costs less than electricity and oil, burns more efficiently, and powers appliances that last longer—all of which add up to real savings over time.
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This blog was updated March 2026.
When winter hits, keeping your home cozy for your family is a top priority.
Heat for your home might seem like a basic thing to do, but choosing which fuel to use isn’t always easy. When you’re trying to decide which fuel to use when heating your home, consider propane.
You might just think about propane for summertime barbecues and camping. But did you know propane is a clean and energy-efficient way to heat your home?
With propane heating, you not only help the environment, but you also save energy and money. Read more about heating with propane and its benefits.
What is Propane?
Propane is a nonrenewable fossil fuel. It produces fewer emissions than heating oil and coal. It’s a natural gas, which can turn into a liquid with increased pressure. If you own a gas barbecue grill, then you know propane is stored in a pressurized container in a compressed liquid form.
When you open the valve on the container, you release the propane, and it vaporizes into a gas. It’s non-toxic, odorless, and colorless. But the odor you smell from propane is added to the gas so you can detect leaks.
Propane is a byproduct of natural gas and petroleum. Most of the propane used in the U.S. is domestic, while some of it comes from Canada. In the U.S., there are about 3,000 propane companies, and over 70 percent of them are family-owned companies. So, when you use propane, you not only save energy, but you also help support the economic growth of America.
According to the Natural Propane Gas Association (NPGA):
- 7.8 million homeowners heat with propane
- 4.6 million homeowners heat water with propane
- 42 million people use propane for outdoor grills
Homeowners aren’t the only ones taking advantage of propane; commercial, industrial, and agricultural consumers use this clean and reliable energy source.
7 Ways Propane Heating Can Save You Money
Propane heat is less expensive, safer, and more efficient than electric or gas heating. It’s also versatile. You can use it to power appliances, heat your home, and heat your water. Here are seven ways propane can help you save money in your home:
1. Home Heating
Updating your home heating system to use propane is one of the biggest ways to save on your energy bills. Most heating systems account for about 30 to 50 percent of your energy bills.
You can save money by installing a propane home heater, furnace, or boiler, rather than using electric or oil heat. Propane costs less and is more eco-friendly.
2. Water Heating
Heating your water is the next largest energy bill, next to home heating. Your water heater accounts for almost 20 percent of your energy bills.
A propane water heater is an energy-saving heater that can save you quite a bit on your monthly bill.
They are also durable, lasting ten years longer than most electric water heaters.
3. Cooking
You can also get ovens and cooktop stoves fueled by propane. These give you instant flame for cooking and heat control. This makes your cooking time quicker than conventional electric stoves.
When you research propane-cooking appliances, the initial cost might be higher than standard stoves, but you’ll save money in the end. Cooking with propane costs less than cooking with electricity.
Another benefit is that if you lose power, you can still cook with a propane cooktop.
4. Generator Power When Needed
It’s inevitable that you could lose power during a storm or an electric company outage. This means you’ll have no electricity for hot water and heating.
If you have a backup generator that runs on propane, you can operate the appliances you need even during an outage. This is especially important if you use medical devices, such as CPAP machines, that rely on electricity. You can rest easy knowing you have a propane generator in case of power outages.
5. Wash and Dry Laundry
When you invest in a propane water heater, you can save energy when you do laundry.
Think about getting a propane clothes dryer.
Dryers use very little propane and dry clothes more quickly than electric dryers, which saves energy and money.
6. Supplement to Central Heating
Even if you don’t want to replace your central heating system with a refillable propane tank, you can use propane as a supplement to keep your utility bills lower. For example, an energy saver heater that uses propane lets you keep your thermostat set lower than usual, which helps save home heat bills.
Propane heaters come in a variety of styles, such as fireplaces, stoves, and space heaters, to match your home décor. These supplemental heaters emit fewer emissions than wood-burning stoves, pellet stoves, or coal stoves.
You can also turn them off if you need to leave the house unexpectedly. This way, you don’t have to worry about burning embers in your stove.
7. Energy-Efficient Home Tax Credit
Not only can you save money with propane heating, but you can also get an energy tax credit for making energy improvements in your home. Switching to propane heating may qualify you for a 10 percent tax credit of the cost of energy-saving home heating and water heating systems.
Make sure you check with the Internal Revenue Service if you’re planning on a tax credit. The credit options can change each year.
Environmental Benefits of Propane
Another benefit of propane is its lower carbon footprint, making it an eco-friendly heating option. In fact, the Environmental Protection Agency (EPA) approved propane as a clean, alternative fuel. It has fewer carbon dioxide emissions than oil or electricity. In addition, it’s non-toxic.
Start Saving with Propane Today
Now that you know the energy savings and eco-friendly benefits you can get with propane heating, it’s time to make the switch.
Become a Kauffman Gas customer today. We offer propane heating installation, maintenance, and delivery. Our friendly, family-owned business also offers payment plans to fit your budget.
FAQs
How much can I really save by switching to propane for home heating?
Heating accounts for 30-50 percent of your energy bills.
Propane costs less than electricity and oil while delivering more BTUs per unit, which means you use less fuel to produce the same amount of heat.
Is a propane water heater worth the investment?
Yes. Propane water heaters last up to ten years longer than electric models and account for nearly 20 percent of your energy bills—so the savings add up over time.
Does cooking with propane actually cost less than electricity?
Yes. While propane cooktops may cost more upfront, cooking with propane costs less than electricity in the long run.
Plus, you get instant flame control and can still cook during power outages.
What happens to my appliances during a power outage if I have propane?
If you have a propane backup generator, you can keep essential appliances running—including medical devices like CPAP machines.
Propane doesn’t rely on the electric grid, so it works when other fuels don’t.
Is propane better for the environment than other heating options?
Yes. The EPA has approved propane as a clean alternative fuel.
It produces fewer carbon dioxide emissions than heating oil, coal, or electricity, and it’s non-toxic.
Can I get a tax credit for switching to propane heating?
Possibly. Switching to propane heating may qualify you for a 10 percent tax credit on the cost of energy-saving home heating and water heating systems.
Check with the IRS, as credit options can change each year.