Note: the following is an updated version of some very important information regarding the recent LP gas shortages and related high propane prices. Are you heating your home with propane (LP) gas? Considering the high propane prices in Central Indiana, you need to read this to save some serious money. The price of LP gas in Hamilton County, Indiana, was previously around $2.50 per gallon. This was creating heating costs of $2000 per year. But now with the recent LP gas shortage the costs could be double! Imagine how far ahead you would be if you could keep $1500 to $3000 of this expense every year?
Propane heat is one of the most expensive ways to heat your home. But what alternatives do you have? Here is an easy way to make a quick comparison between different heating systems and fuels. From your past heating bills we can estimate how much heat your home needed last winter. The unit of heat we use is called a BTU. (A BTU is a very small amount of heat so you need several million of these BTUs each winter.)
Let’s say your home needed 65 million BTUs last winter. Your 90% LP gas furnace can make one million BTUs for $30.86 if the gas cost is $2.50 per gallon. So your winter fuel bill ends up being about $2000 because 65 million X $30.86 = $2006. But the current high propane prices could double this cost to $4000 per winter! Does this unreasonably high propane bill sound familiar for your home?
Geothermal saves $1000 to $2000 per year!
A geothermal heat pump in your home will not change the amount of heat you need. But the geo system can make (actually, move) the same one million BTUs for a mere $7.53 if the cost of electricity is $.09 per kWh. So now your winter heating bill is 65 X $7.53 or $489. Do some quick rounding and you can see about $1500 per year in geothermal energy savings! In a more extreme example, your furnace may only be 80% efficient and your electricity may only cost $.075 per kWh. Now your geothermal heating savings is over $1800 per winter!
Note: The above prices were listed before the recent LP gas shortage. With the current high propane prices, you could easily save $3000 per winter.
And the geothermal air conditioning savings are added to the winter savings!
Precision Comfort Systems will help you with all your options and even update you on the 30% geothermal federal tax credit. We can help you decide if your next propane furnace repair is a wise decision. Maybe it’s better seen as a good opportunity to invest in a new system. Before you spend more money on your next propane tank refill, or your next furnace repair, or even your next air conditioner service, call the heating and cooling specialists at Precision Comfort Systems. 317-867-2665.