In the Northeast United States, heating options are quite limited. However, natural gas is increasing in popularity. It’s cost-effective and reliable, making it an excellent choice to heat with! However, unlike the two titans of the industry, Heating Oil and Propane, it can’t be installed in a pre-existing home or neighborhood. This makes it unavailable to most of the general public.
But in small apartments, condos, and places with mild winters, you’ll see electric heat and heat pumps being more common. Electric heat can be expensive, but in places where winters are milder or with smaller spaces, it won’t be as bad. Otherwise, your options are left to Heating Oil and Propane.
Heating oil and Propane are the most popular forms of heating across the East Coast. They’re both fuels that get delivered to your home in a liquid state before it’s converted to heat and pushed throughout your home. Despite these two having some similarities, there are some differences. But what are they exactly? I’ll be covering exactly what you need to know below!
Switching: When you Should Make it
When it comes to making the switch to either Heating Oil or Propane, it boils down to when your home needs a new boiler or furnace. The most expensive component tends to be the system. When changing out your current system for the other, here are some things that you’ll need to know.
- Tank: The tank is the most important component of your system. Regardless of whether you own it or are renting it, you should know where it is and what its capacity is.
- BTUs per Gallon and System Efficiency: Knowing the difference between the two fuels, BTUs and System Efficiency, is important for functionality. For example, propane tends to be more efficient. However, it produces fewer BTUs per gallon than heating oil.
- Shopping Flexibility: If you like to be in control of when you receive your delivery, then this is important. You don’t want to run out while waiting for a delivery!
What are the Differences?
The biggest difference between the two types of tanks is the cost. Propane tanks are often much more expensive than heating oil tanks if you buy them outright. At the time of writing, you can buy a standard heating oil tank at Home Depot for around $1k, depending on the model. However, propane tanks tend to be a bit pricier at $1.5k for an average tank. While the prices are similar, a heating oil tank is the cheaper option.
How they’re stored is another major difference. Heating oil tanks can be placed indoors or outdoors. They also tend to be more compact, preventing them from taking up a lot of room. However, propane tanks tend to be big and bulky. Plus, if you’re renting them, then you’re required to have them installed above ground, outside. But if you own them, you can install them underground without posing a threat to the environment.
The Owner of the Tank
Tank ownership is a big part of owning a heating oil or propane tank. When it comes to heating oil, you’ll typically own your tank. Meanwhile, with propane, the provider tends to own it. This means that they’re in control of when you get a delivery!
When making the switch from heating oil to propane, the provider will tell you that it’ll save you money, but that’s just not true! Renting the tank from the provider will prevent you from ordering from anyone else! You’ll have no freedom when it comes to ordering! In most states, it’s illegal to fill another provider’s tank. This means in an emergency situation, you won’t be able to order from someone else if you need to! If you want to change providers, you’ll either have to buy out your tank, buy your own, or contact another provider to put their tank in!
However, when it comes to heating oil, you’ll always own your tank! You can buy it directly from the manufacturer or a storefront such as Home Depot or Lowe’s. But you get the added benefit of having the freedom to order from whoever you want! So it’s best to own your tank regardless of whether you heat with heating oil or propane!
Which is More Efficient?
With how current prices are for heating oil, it might seem that propane is the better option to go with. However, just by looking at the price per gallon, you’re omitting two of the most important factors. These factors are BTUs (British Thermal Units) and Efficiency. BTUs determine how much heat is produced by a gallon of the desired fuel. For example, heating oil produces 138,000 BTUs per gallon! However, propane will only produce 91,000 BTUs per gallon. That is significantly less than what heating oil produces!
While BTUs are a major factor when it comes to heating, efficiency is important as well. Most modern-day boilers and furnaces tend to be 95% more efficient when compared to older furnaces. Propane furnaces will convert 95% of the propane into heat. Meanwhile, heating oil will only produce 85-90% heat from the boiler/furnace. Using 85% in our calculation below, we’ll get the following:
Propane: 91,000 x .85 = 77,350 Effective BTUs per gallon
Heating Oil: 117,300 x .85 = 117,300 BTUs per gallon
If we’re doing a comparison side by side, you’ll want to take a look at how many gallons of propane it takes to produce the same amount of heat as heating oil. This will be based on one gallon of heating oil. Heating oil produces 117, 300 effective BTUs per gallon, while propane only produces 77,350 effective BTUs per gallon. Using the following, you’ll be able to determine how many gallons of propane it takes to produce the same amount of BTUs as a gallon of heating oil.
117,300 / 77,350 =1.51 gallons of propane
As you can see, heating oil produces more BTUs per gallon than one gallon of propane! You’ll need a gallon and a half of propane to match the amount of heat that Heating Oil Produces!
Flexibility to Order From Who You Want
The nice thing about heating oil is that you have the freedom to order from whom and where you want to. Signing up for automatic delivery is a start. However, note that when you sign up for automatic delivery, you’ll end up paying a premium price per gallon. Call-by is much better in terms of placing orders. There are no hidden fees, and using reliable websites such as FuelSnap, you’ll end up getting some great prices!
Price shopping when it comes to propane is VERY hard. This is because most of the time, a propane tank is going to be rented from the provider. There’s a small percentage of propane tank owners who own their tanks. If you’re one of them, congratulations! But unfortunately, you won’t be able to do much shopping around.
However, with heating oil, the market is much more competitive. Due to this, prices tend to be a bit more sporadic than with propane. Dealers are constantly competing with each other to get customers on their schedule, so it’s advantageous to have the best price in the area. This gets them more orders and more new customers! Heating Oil tanks also get the bonus of utilizing the Smart Oil Gauge!
The Bottom Line
When it comes to which is better, heating oil is the clear answer. It burns much hotter, and you own your tank, which makes shopping around a breeze! Plus, with cheaper tanks and competitive pricing, you’ll be able to get a fill-up for a good price and not be restricted by the dealer!
However, that’s not to say that propane is without its merits. It’s versatile and is often used for more than just heating! If you find yourself needing to use propane for cooking, electric, and more, then this is your answer! Just be aware that you’ll likely have to rent from your provider!
At the end of the day, which you choose to use to heat with is up to you. They both have their positives and negatives and will both provide you with ample warmth and will be effective long-term heating solutions.
Happy Heating!
Hunter
