Energy Efficiency and Resilience of Building and Renovating With Propane

Exploring propane’s energy advantages for residential renovations and new construction

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Sponsored by The Propane Education & Research Council

By Amanda C Voss, MPP

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Building a Resilient Home

Power outages are becoming a more frequent fact of life. On average, U.S. electricity customers experienced approximately five and one-half hours of electricity interruptions in 2022, according to the U.S. EIA’s recently released Annual Electric Power Industry Report.⁷ While weather has always been a leading cause of power outages, the number of weather-related outages has escalated dramatically in recent years, increasing by approximately 78% between 2011-2021 when compared with the previous decade, according to data compiled by Climate Central. Residents in Texas, Michigan, California, North Carolina, and Pennsylvania are particularly vulnerable, as these states suffer the largest number of weather-related power outages.

Figure courtesy of Propane Education & Research Council

Propane brings exceptional clean energy benefits to the table, including distinct reductions in harmful emissions.

According to the DOE, outages are also lasting longer. A power outage can place a heavy burden on a family. Even short outages, lasting less than four hours, cost homeowners an average of $1,250. Still, only 27 percent of homeowners report having any source of backup power.

Photo courtesy of Propane Education & Research Council

Having energy on site provides reliable peace of mind for homeowners.

In areas where natural disasters occur, many builders have discovered the value of marketing more durable homes. This is certainly true for net zero or off-grid homes that may utilize multiple forms of power, including solar and wind. Propane standby generators offer a powerful, reliable way to protect homes and families, as well as buildings and businesses, from the damage a power outage can cause. A standby generator powered by propane offers definite advantages over other fuel source generators. Propane doesn’t degrade over time, unlike diesel or gasoline, making it an ideal standby power fuel. Propane produces significantly fewer greenhouse gas emissions than diesel or gasoline and is non-toxic, non-poisonous, and won’t contaminate soil or water. Propane can handle an entire home’s energy needs for days, unlike solar- or wind-powered systems. Permanently installed and supplied by an above- or below-ground tank, a propane standby generator starts automatically, the moment the power goes down, supplying supplemental electricity in as little as 10 seconds after an outage. A propane standby generator provides homeowners heating and cooling, lighting, refrigeration, and the amenities their neighbors are without after the power is knocked out. A reliable propane standby generator can be a key part of resilient, self-contained energy design, which allows a house to continue providing the primary function of a home after a disaster. On-site generators allow a home to resist hazards brought on by major disasters, such as damage to appliances or electronics, spoiled food, loss of heat or air conditioning, hotel costs, and more. Resilience through on-site power reduces the magnitude or duration of a disruptive event to a property and the impact on homeowners.

Photo courtesy of Propane Education & Research Council

Propane water heaters, furnaces, and boilers use less energy, cost less to operate, and have fewer emissions as compared to electric models.

REMODELING WITH PROPANE FOR EFFICIENCY AND ECONOMY

In the winter of 2023–2024, about 4.79 million households in the United States used heating oil (distillate fuel oil) as the primary heating fuel, and about 82% of those households were in the U.S. Northeast Census Region, according to the EIA.⁸

Heating oil and diesel fuel are closely related petroleum products called distillates. Heating oil is sold mainly for use in boilers and furnaces, for space heating, and in water heaters. Nearly all of the heating oil consumed in the United States is produced from crude oil, making it an expensive and carbon-heavy fuel source.

Heating oil systems can be converted to propane today and have an immediate impact on reducing emissions. Additionally, choosing a propane conversion instead of an electric conversion reduces the installation and operating cost, when compared to electrical equipment.

Conversion from heating oil to propane is easy, inexpensive, and reduces emissions. In designing new systems or replacing current heating oil boilers and furnaces, the propane HVAC equipment will have a similar footprint, but higher efficiencies and eliminate the environmental risk of spilled oil. Propane is better for the environment, with systems producing 12 percent fewer greenhouse gas emissions and 80 percent fewer NOx emissions compared with a heating oil furnace. Like heating oil, propane is stored on site, providing security and independence for homeowners. Propane systems have lower overall energy costs compared with heating oil systems. Comfortable, consistent warmth is not the only benefit of a propane heating systems. Propane gives homeowners additional flexibility, beyond home heating. It can provide exceptional energy performance in water heating, cooking, clothes drying, fireplaces, and backup power generation applications. Its versatility far exceeds the limitations of fuel oil.

Confronting the cost of any energy conversion is a reality. While propane is cheaper than oil for home heating, some homeowners may question the upfront costs of converting fuel sources. Switching to propane is not a small investment, but the payoffs can be big. Given current oil prices, payback for the average conversion project can be expected within 2 to 3 years. That is an expedited timeline compared with years past, when oil prices were lower. Propane suppliers also emphasize the benefits beyond space heating, once propane is onsite. Propane can be added to fuel gas stoves, dryers, backup generators, and water-heating appliances, helping curb electricity costs. Not only is propane a less expensive fuel than oil, but furnaces and boilers powered by it are more efficient than their oil-fueled counterparts and have lower annual maintenance costs. Another benefit of propane is reduced insurance costs. Most homeowner policies do not include coverage for an oil spill, forcing owners to purchase separate liability insurance to guarantee protection in the case of a toxic spill. The impact of a home heating oil spill can be devastating, with oil seeping into the soil and causing damage that can require extensive soil remediation. With propane, this risk is eliminated. A propane release is very rare, but if it does happen and propane is released into the air it can dissipate harmlessly.

Any remodeling conversation should also factor in costs avoided. When evaluating switching from oil to electricity, homeowners have to calculate transitioning from 60 to 100 amperage service up to 200 and 400 amps. That upgrade alone can cost more than $6,000, even before new equipment costs and retrofit costs are factored in. However, selecting propane as a replacement for fuel oil means avoiding the need to increase amperage while providing efficiencies of 98 percent or more. For reference, heating oil furnaces typically provide efficiencies between 60 and 80 percent.

While the ultimate goal for many homeowners is to lower utility bills and improve comfort, making the switch to propane brings several additional benefits. Many homeowners are relieved to rid their basements of a 200-plus-gallon oil tank, freeing up square footage and eliminating the potential for toxic leaks. Whether the space relies on space heating, forced air heat, or a boiler, heating with propane creates a healthier indoor environment and more comfortable heat. Oil furnaces also require considerably more maintenance due to the buildup of soot and carbon. “That’s an energy cost in my opinion,” says Tom Soukup, principal of Patriot Water Heater Co. in Lancaster County, Pennsylvania. “Gas is cleaner and easier to maintain. Overall, propane is a much better solution than using oil.” Oil furnaces can be vented only one way: up. That can present installation challenges. Propane furnaces are more flexible because they can use existing vent paths or vent out of a side wall. More homeowners are also prioritizing the environment. Compared with oil, propane for space heating is the greener option, producing 38 percent fewer greenhouse gases.