Comparing propane to Off-peak electric heating systems

Learn how you can save money with WH's Off-Peak Dual Fuel program.

Posted by Guest Blogger on March 27, 2014

How many times have you heard that you shouldn’t put all your eggs into one basket? The same holds true when deciding what fuel you should use to heat your home. If your home uses liquid propane (LP) for home heating, water heating or clothes drying, chances are high that you are throwing away money by trying to maintain the percentage of fuel you have in the tank. Throw in a “winter to end all winters” and you have a tremendous opportunity to save money by investing in an off-peak electric heating system.

As I write this, the price of propane per gallon is $2.65. Looking back on this heating season the price of propane spiked to $4.60 a gallon! Depending on the efficiency of your heating system, you are most likely paying nearly 3.5 times more to heat your home with propane compared to if you would have paid using an off-peak electric heating system. That means for every $1,000.00 you poured into that LP tank in your yard, you would have only paid $285.00 worth of electricity to do the same amount of heating. The Off-Peak electric rate for Wright-Hennepin’s (WH) Dual Fuel program is $4.9 cents per kWh. This low-priced electric rate not only saves you money on home heating costs compared to propane, but the same applies to water heating as well. Based on a 95 percent efficient propane gas furnace this is the equivalent of paying $1.25 per gallon of propane.  

It doesn’t matter how old your LP furnace is. Now is the time to act and take advantage of saving money with WH’s Off-Peak Dual Fuel program. Furthermore, if your home’s heating system is 15 years old, chances are that in the very near future you will need to invest in a new propane furnace replacement. Yes, you could do the same thing and expect different energy savings from a 15 year old furnace to a shiny new 95 percent efficient propane furnace. Before you sign your name on the dotted line remember that the price of propane per gallon spiked to $4.60 this past winter!

Rather than changing your propane furnace, you can have a HVAC contractor install an electric plenum heater that will qualify you for the Off-Peak Dual Fuel program. Not only will you have a new heating source in electric heat, but you will also extend the life of your aging propane furnace. This means no more putting all your eggs into one basket. For more information, visit WH’s Dual Fuel program page.


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