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How Much Do Propane Heaters Cost to Run Compared to Electric?

On this page 8 sections
  1. Propane Heaters vs Electric Heaters at a Glance
  2. How Heat Output and Room Size Affect Your Choice
  3. Running Costs of Propane Heaters Compared to Electric
  4. Propane Heater Safety Compared to Electric
  5. Noise and Comfort Levels of Propane and Electric Heaters
  6. Installation Costs and Complexity for Propane vs Electric
  7. Lifespan and Maintenance Costs: Propane vs Electric Heaters
  8. More Questions, Answered
Bottom line
Propane heaters often cost less to run than electric resistance heaters but electric heat pumps can beat propane in mild climates. Your choice depends on local energy prices, climate, and installation.

Heating with propane usually runs cheaper per BTU than electric resistance heat, but electric heat pumps often outperform propane furnaces in efficiency when outdoor temperatures are moderate. Running costs depend heavily on your local electricity rates, propane prices, and how well your home holds heat.

This article compares propane and electric heating by heat output, running and installation costs, safety, noise, and lifespan to help you decide which fits your needs best.

The essentials
Propane furnaces deliver hotter air but electric heat pumps can be more efficient in mild climates.
Electric resistance heaters are 100% efficient but usually cost more to run than propane per BTU.
Propane patio heaters produce more heat but cost about four times more per hour than electric patio heaters.
Installation costs for propane heaters are typically higher due to tank and venting requirements.
Propane heaters keep working during power outages, electric heaters do not without backup power.

Propane Heaters vs Electric Heaters at a Glance

FactorPropane HeatersElectric Heaters
Heat output and room sizePropane heaters deliver higher BTU heat, good for large or uninsulated spacesElectric heaters, especially heat pumps, better for smaller, well-insulated rooms
Running cost and fuel efficiencyPropane prices vary widely by region and season; an 80% efficient furnace converts most of the fuel’s energy into heat, making propane competitive in many areasElectric resistance is 100% efficient; heat pumps vary, often cheaper in mild zones
Safety and ventilationRequires ventilation and CO monitoring; indoor-rated units have safety sensorsNo combustion, no CO risk; must have tip-over and overheat protection
Noise levelsPropane heaters may emit low noise from combustion and fansElectric resistance heaters operate silently, best for quiet rooms
Installation complexity and costNeeds propane tank, gas lines, and possible venting; higher upfront costPlug-in electric heaters or heat pumps require less complex installation
Lifespan and maintenancePropane furnaces last about 20 years with regular servicingElectric heat pumps last about 12 years, with less routine maintenance
Choose Propane Heaters if…
Choose propane heaters if you need high heat output for large or poorly insulated spaces, or want reliability during power outages.
Choose Electric Heaters if…
Choose electric heaters for quieter operation, simpler installation, and lower running costs in mild climates with good insulation.
Best for portable heat
Jocoevol Propane Heater Outdoor 18000 BTU

Jocoevol Propane Heater Outdoor 18000 BTU

Best for Small to medium outdoor spaces up to 450 sq.ft needing flexible heat levels
This propane heater offers three adjustable heat settings up to 18,000 BTU, which lets you tailor warmth and energy use to your space. Its cordless design runs on a standard 20 lb propane tank, so it works well where electricity isn’t available or during outages. Safety features include oxygen depletion and tip-over shutoffs, making it a solid choice for outdoor use.
Heat output 6,000/12,000/18,000 BTUCoverage area Up to 450 sq.ftNoise level Under 30 dBPower source 20 lb propane tank (not included)
Why it made the cut
Adjustable 6,000/12,000/18,000 BTU output for heat control
Multiple safety layers including low oxygen and flameout protection
Portable with durable casters for easy movement and stable placement
Good to know
Requires a separate propane tank that adds to running cost
Limited to outdoor or well-ventilated areas due to combustion exhaust
Skip it if Skip if you need indoor heating or electric-powered operation
View on AmazonPaid link · live price on Amazon
Best for whole-house hot water
Rheem RTG Series 7.0 GPM Liquid Propane Tankless Water Heater

Rheem RTG Series 7.0 GPM Liquid Propane Tankless Water Heater

Best for Homes needing continuous on-demand hot water with efficient propane heating
This Rheem tankless water heater uses 160,000 BTU per hour to supply instant hot water at 7.0 gallons per minute, enough for multiple showers simultaneously. Its high 0.82 energy factor means lower gas bills compared to electric tanks. The outdoor installation removes venting concerns indoors, but professional setup is required.
Heat output 160,000 BTU/hrFlow rate 7.0 GPM at 35°F riseEnergy factor 0.82 UEFInstallation Outdoor wall mount required
Why it made the cut
Continuous hot water on demand with 7.0 GPM flow rate
Energy-efficient 0.82 UEF reduces fuel use vs electric tanks
Safety features include freeze protection and flame failure detection
Good to know
Requires professional installation and outdoor mounting
Higher upfront complexity than plug-in electric heaters
Skip it if Skip if you only need space heating or portable units
View on AmazonPaid link · live price on Amazon

How Heat Output and Room Size Affect Your Choice

Propane heaters deliver more heat per unit than electric resistance models, making them well suited for larger or less insulated spaces like garages. A typical propane heater outputs between 10,000 and 40,000 BTU per hour. Electric resistance heaters provide 3,412 BTU per kilowatt-hour, which is 100% efficient but generally less powerful in output.

Heat pumps differ by supplying warm air at a lower temperature—around 95°F compared to propane furnaces at about 120°F—but they use electricity more efficiently by moving heat rather than creating it. This makes them ideal in mild climates or well-insulated homes.

A small propane heater, often portable, can effectively heat a garage or workshop with less insulation. Propane heaters for home use typically require venting and a fuel tank, so they suit larger spaces or whole-home systems rather than just single rooms.

Electric baseboard heaters and portable units work best as supplemental heat in smaller, insulated rooms due to their slower heat distribution and lower heat output. For example, a 1,500 W electric heater suits a 150 sq ft room but struggles in a drafty garage.

Sizing your heater depends on room volume, insulation quality, and desired temperature rise. Say your garage is 24 by 24 with 8 ft ceilings—about 4,600 cubic feet. That might need a propane heater outputting 30,000 BTU or more, while an electric heater would need multiple units to match that heat delivery.

Running Costs of Propane Heaters Compared to Electric

propane heaters for garages: Running Costs of Propane Heaters Compared to Electric

Propane contains about 91,500 BTU per gallon and costs vary, but say $3.50 per gallon as a baseline. An 80% efficient propane furnace converts roughly 73,200 BTU of that into usable heat. Electric resistance heaters run on electricity at roughly 100% efficiency, delivering 3,412 BTU per kWh, with electricity priced around $0.17 per kWh on average.

Running costs depend on fuel prices and heater efficiency. For propane, burning one gallon costs $3.50 and yields 73,200 BTU useful heat. That’s about 21 cents per 1,000 BTU. Electric resistance heat costs roughly 5 cents per 1,000 BTU (17 cents ÷ 3.412). Propane can be cheaper if electricity rates are high.

Heat pumps operate differently, with a coefficient of performance (COP) that varies by outdoor temperature. At 47°F, a heat pump might have a COP of 3, meaning it delivers 3 units of heat per unit of electricity used, cutting cost to about 1.7 cents per 1,000 BTU. However, as temperatures fall below freezing, COP drops and propane may regain cost advantage.

Regional variation matters: electricity costs can range from 10 to 40 cents per kWh, propane prices swing by location and season. In colder northern states with high electricity rates, propane often wins on cost; in warmer or low-rate regions, electric heat pumps lead.

For patio heaters, propane models produce higher BTU output but cost roughly $0.80 per hour to run, while electric patio heaters use about 1.5 kW and cost around $0.20 per hour at $0.17 per kWh. Efficiency and comfort needs guide the choice here.

Newer propane furnaces reach about 80% efficiency, while modern heat pumps can exceed 300% efficiency under ideal conditions. Your running cost depends on which technology suits your climate and fuel prices best.

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Propane Heater Safety Compared to Electric

Propane heater safety hinges on proper ventilation and carbon monoxide (CO) monitoring, while electric heaters avoid combustion risks but require tip-over protection.

You can use propane heaters indoors only if the model is rated for indoor use and the room is well ventilated. Without ventilation, propane combustion produces CO, which is a deadly, odorless gas. That’s why a working CO alarm is essential when running any propane heater inside.

Vented propane heaters exhaust combustion gases outdoors through a flue or vent pipe, removing CO from the living space. These units are safer indoors but need professional installation and adequate venting.

Vent-free or ventless propane heaters burn fuel directly in the room without exhausting gases outside. They rely on oxygen depletion sensors (ODS) that shut off the heater if oxygen levels drop too low, plus flame failure devices that cut fuel if the flame goes out. Still, these heaters must be used with caution and proper CO alarms, and they may be restricted or banned in some areas.

Electric heaters skip combustion entirely, so they don’t produce CO. Their main safety features are tip-over switches that shut off power if the heater falls and overheat protection to prevent fires. Still, you should never plug them into extension cords or power strips, and keep them three feet from combustibles.

Noise and Comfort Levels of Propane and Electric Heaters

Electric resistance heaters are silent because they produce heat without a flame or fan, making them ideal for quiet rooms.

propane heaters for garages: Noise and Comfort Levels of Propane and Electric Heaters

Propane heaters have a pilot light or electronic ignition that can cause a faint clicking or hissing noise. Larger propane furnaces produce hotter air—about 120°F compared to electric heat pumps’ roughly 95°F—but they may generate some blower noise during operation.

Heat pumps use fans to move warm air, producing a consistent hum that varies by model and setting. While noisier than electric baseboards, they offer better efficiency in mild climates.

Patio propane heaters run quietly with just the gentle sound of the flame, making them comfortable for outdoor use where noise matters.

Installation Costs and Complexity for Propane vs Electric

Installing a propane heater involves more than just setting the unit down—it requires a propane tank, supply lines, and sometimes venting. Propane heaters often need a licensed professional to set up the tank and piping safely, especially for permanent indoor units. Some models, like portable propane heaters, skip complex venting but still rely on the tank connection.

You might wonder, do propane heaters need electricity? Many models do use a small amount of electricity to power fans or electronic ignitions, but not all. That means in a power outage, a basic propane heater without electric components can still run, offering a reliability edge over electric-only heaters.

Electric heaters usually keep installation simple. Plug-in electric resistance heaters require no setup beyond a standard 120-volt outlet. Larger electric units, such as baseboard heaters or electric heat pumps, might demand dedicated circuits or 240-volt wiring, adding to electrical work costs.

Tankless propane water heaters and electric tankless models both call for professional installation. Gas piping, venting, and strict code compliance add to the upfront cost for propane tankless units, while electric versions often need an upgraded electrical panel or wiring to handle the load.

Installation expenses vary widely by region and model. Expect propane systems with tanks and venting to cost several hundred to a few thousand dollars installed. Electric heaters can range from plug-and-play options under $100 to thousands for full heat pump systems with ductwork or panel upgrades.

Installation tip
Check if your local code requires permits or licensed installers for propane tank and vent setup. This can affect both cost and timeline.

Lifespan and Maintenance Costs: Propane vs Electric Heaters

A propane furnace typically lasts about 20 years, outpacing the average 12-year lifespan of an electric heat pump. The longer service life can spread out replacement costs but assumes regular upkeep.

Electric resistance heaters have fewer moving parts and simpler designs, which usually means fewer repairs and lower maintenance expenses. They mainly need periodic cleaning and inspection, keeping maintenance costs low.

Heat pumps require annual servicing to maintain efficiency. This service includes checking refrigerant levels, cleaning coils, and inspecting electrical connections. Skipping this can reduce efficiency and shorten lifespan, pushing up long-term costs.

Propane heaters need safety checks to ensure ventilation, gas lines, and combustion components are in good shape. Occasional repairs might involve replacing igniters or valves, which add to maintenance costs but typically occur less frequently than heat pump servicing.

Comparing maintenance costs, propane systems generally involve more complex checks and potential repairs due to combustion parts and fuel handling. Electric resistance heaters cost less to maintain, while heat pumps fall in between, with regular servicing essential for keeping running costs down.

If you want to extend your propane furnace’s life, annual inspections and timely repairs are key. Electric heat pumps demand a similar commitment for servicing but might need replacement sooner, impacting total ownership cost.

Maintenance reality
Neither propane nor electric heating lasts forever; budgeting for periodic service and eventual replacement keeps surprises off your coldest nights.
Rheem RTG Series 7.0 GPM Liquid Propane Tankless Water Heater Outdoor
Maintenance ease
Rheem RTG Series 7.0 GPM Liquid Propane Tankless Water Heater Outdoor
The Rheem RTG Series tankless propane water heater features straightforward maintenance steps, making upkeep manageable for homeowners willing to follow the manual.
View on Amazon

More Questions, Answered

Are propane heaters safe to use indoors without ventilation?
Propane heaters should never be used indoors without proper ventilation because they produce carbon monoxide, a dangerous, odorless gas. Indoor-rated propane heaters include oxygen depletion sensors that shut off the unit if oxygen levels drop. Always follow manufacturer guidelines and have a working carbon monoxide alarm in rooms where propane heaters operate.
How much does it cost to run a propane patio heater per hour?
Running a propane patio heater typically costs around 80 cents per hour based on a standard 18,000 BTU output and propane priced at $3.50 per gallon. This compares with about 20 cents per hour for an electric patio heater at 1.5 kW. Propane heaters produce more heat but at a higher fuel cost per hour.
Do electric heat pumps always cost less to operate than propane furnaces?
Electric heat pumps usually cost less to operate in mild climates because their efficiency can exceed 300%, moving more heat per unit of electricity. However, in colder climates where heat pump efficiency drops, propane furnaces may cost less due to their consistent heat output and fuel price. Local energy rates and climate determine the better operating cost.
What installation is needed for a propane heater in a garage?
Installing a propane heater in a garage requires a propane tank supply, gas lines, and often venting for indoor-rated models. The unit must be placed to maintain clearances and ensure safe combustion air supply. Professional installation is recommended to meet code and safety standards.
Can propane heaters work during a power outage?
Many propane heaters can operate without electricity, making them reliable during power outages. Models without electric ignition or fans run on a simple gas valve and pilot light. This is a key advantage over electric heaters, which need power to function.
How does home insulation affect the cost efficiency of propane vs electric heating?
Better home insulation reduces heat loss, which lowers overall heating costs for both propane and electric systems. Propane heaters that deliver higher temperature air may perform better in poorly insulated spaces by warming quickly. Electric heat pumps benefit more from insulation because they work best maintaining steady temperatures rather than rapid warm-up.

Joye Editor

HeaterGuides covers home heating, water heating and HVAC: how the equipment works, what it costs to run, and how to use it safely.

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