With the high price of propane, folks have been asking me when they should switch from Heating Oil or propane to electric space heating.
I made up a table of equal energy values to help answer the question.
In making up the table, I assumed that your propane or oil furnace is about 83% efficient.
Check your electric bill and determine your cost for the next kilowatt that you would use for heating. Take the total amount of the bill and subtract the any items that are a fixed cost per month. If you pay a fixed charge for the service or for the meter take it off the total.
Divide the dollar amount by the number of kilowatt-hours you used (kWh). That result should be about 10 cents, plus or minus a few pennies.
Look up your electric price per kWh up in the left column of the table. Then read across the equivalent price for propane.
Let’s look at an example:
If your price for electric is, $0.080 (8 cents per kWh) then you should stop heating with propane if you are paying more than $2.58 a gallon for it. If your delivered cost of propane is less than $2.58 a gallon it is less expensive to heat with propane.
If you are paying 10 and a half cents for electrical power then as long as the price of propane stays below $3.39 a gallon it is a better deal.
I added a column for heating oil to help folks see the difference. If you are paying 10 cents a kilowatt-hour for electric then it is less expensive to heat with oil as long as the price is below $3.87 a gallon.
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Click here for a free money saving report written by the Energy Boomer titled HOW SAVE MONEY ON YOUR NEXT HEATING BILL