Which Fuel Is Cheapest?

mdshunk

I just ran these numbers (my local prices) for a user on another site. It was a pain in the neck to derive, so I thought I'd post them here as well. I'll break the prices down in terms of therms, which is 100,000 BTU's. (prices in my chart include distribution and taxes)

Natural gas - $0.0145 / ft³, 1ft³ of natural gas is 1,031 BTU, that makes natural gas $1.40 per therm.

LP gas - $1.45 / gal, 1 gal of LP gas is 91,500 BTU, that makes LP gas $1.59 per therm

Heating oil - $2.30 / gal, 1 gal of heating oil is 138, 690 BTU, that makes heating oil $1.69 per therm

Electric resistance- $0.09 / Kw/h, 1 Kw/h is 3,412 BTU, that makes electric $2.64 per therm

Plug into that some common efficiencies for heating equipment, and you'll get your net price per therm.

Consider a modern Natural Gas or LP gas furnace to be around 90%, an oil furnace 85%, and electric resistance is 100%. That gives you typical net operating prices, per therm, as follows:

Natural gas, $1.55/therm
LP Gas, $1.76/therm
Oil, $1.99/therm
Electric resistance, $2.64/therm


EDIT... I just ran the current numbers for PA hard coal and several of the more popular central PA fuel wood species, if anyone cares for that data as well.

georgia dawg

In my mixed climate and warmer areas, we see a lot of heat pumps. Since they basically just transfer heat instead of generating it, they run about 40-50% cheaper than electrical resistance and are used as A/C as well. With no flues, they're also the cheapest central system to install. Auxiliary electric coils kick in when it dips below freezing, but the brief spike in $ is more than offset by the efficiencies in the rest of the year. We still have a lot of natural gas and propane systems, too. Don't see much coal or oil, though. I guess it all depends on local environmental conditions and location to fuel sources.

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"How much per sq.ft? Well.. gimme $1K and I can build a shed. Gimme $1M and I can build the same size shed with gold plating and encrusted diamonds."

PIPES

Hey MD , nat. gas is measured in cubic feet not square feet.

Glasshousebltr

My natural gas and my feet are measured in Nasal Units.

Bob

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Bob

mdshunk

Thanks. Fixed it.

31b

MD, are those numbers still pretty much the same? obviously the different in burning power doesn't change between LP or NG, but what you calculated also used the price per cubic foot of NG at the time and price per gallon of LP I guess too. Not sure if one or the other's pricing has changed significantly since.

I'm about to switch over to one of those utilities, just ripped out my old oil system, and was quoted $3300 to get a NG line and meter brought to the house. Propane isn't going to cost me much at all to get installed, so now I'm trying to run some numbers on whether it's going to be justified to spend a few grand and how quickly will it be saved in the end, or on resale of the house, etc.

beenthere

What MD didn't post. is what it cost to rent the LP tank.
If you rent the tank, you are charged a rental fee on each gallon delivered. Todat, that rental fee can be as cjeap as 25 cents per gallon, to over 1 dollar a gallon.

So, are you going to buy your own LP tank, or rent it?

If renting it. Fine out how much they charge.

Bestheating

31b,
Add into the equation, the cost of replacing the equipment sooner if you use LP. It is hard on furnaces and their failure rate is often sooner. I have removed furnaces as young as 7 years old, which were just burned out. In some cases, the heat exchangers are plugged from running out of fuel and the customers wanted the quickest way to heat, which was replacement.
Larry

beenthere

LP installs sgould have a LP cut switch installed to protect them from being operated like that.

They will last much longer

Bestheating

Yes on the cutoff switches but that has not always been the case. Either way, I would pay to have natural gas brought to my home if possible before installing an LP unit if at all possible.
Larry

beenthere

The most trouble from LP systems. Comes fdrom those that were not installed properly.
No LPS. Didn't use the SS burners. Didn't bother to set up combustion.

If installed properly. Never had any go out any faster then a NG one installed in the same way.

MechAcc

You can down load a Microsoft XL program from the DOE that will calculate costs for natural, propane, wood, corn pellets, coal, etc. at
www.eia.doe.gov/neic/experts/heatcalc.xls

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