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Lower Energy Costs for Your Homebuyers

A Smart Choice for Builders and Buyers

Energy efficiency isn’t just a buzzword—it’s a selling point that can make or break a home sale. Today’s homebuyers are more cost-conscious than ever, scrutinizing not only mortgage payments but also long-term operating expenses. Builders who integrate propane into their designs can offer a tangible financial advantage: lower utility bills, greater energy independence, and a home that stays warm even when the grid goes dark.

From high-performance furnaces to on-demand water heaters, propane-powered homes are more efficient and cost-effective than their all-electric counterparts. For builders, that means an opportunity to differentiate projects in a competitive market while delivering real, measurable savings to buyers.

Efficiency That Adds Up

Propane’s efficiency isn’t just theoretical—it translates directly to lower energy bills. Whether it’s home heating, water heating, cooking, or backup power, propane appliances outperform electric alternatives in both efficiency and cost savings.

Furnaces That Deliver More Heat for Less Money

A high-efficiency propane furnace operates at up to 98% efficiency, heating air to 115-125 degrees Fahrenheit—far warmer than the lukewarm air produced by electric heat pumps. This translates to a cozier indoor environment and reduced energy costs.

Research from Newport Partners, LLC, shows that homeowners using propane furnaces save up to 10% on heating costs compared to those with standard air-source heat pumps and up to 14% compared to heating oil furnaces.

For builders working in regions with variable climates, hybrid heat pump systems provide an even smarter option. These solutions use a propane tankless water heater to supplement an electric heat pump, lowering operating costs by 35% compared to all-electric systems while ensuring consistent warmth.

Water Heating Without the Sticker Shock

Water heating is a major energy expense in any home, but propane offers a more efficient, cost-effective solution. Propane tankless water heaters outperform electric models in every measurable category, delivering on-demand hot water with superior efficiency.


In colder climates, propane tankless water heaters have the lowest annual cost of ownership compared to electric, heat pump, and heating oil models. A typical family can save $100 per year compared to an electric heat pump water heater—all while benefiting from a flow rate more than three times higher than electric models.

The Fireplace Buyers Actually Use

Wood-burning fireplaces may be picturesque, but they’re notorious for inefficiency. Traditional fireplaces lose as much as 85% of their heat up the chimney, while a propane fireplace operates at over 90% efficiency—producing more heat while consuming less fuel.

Propane fireplaces also have a lighter environmental footprint than wood-burning units, emitting fewer particulates and producing less carbon monoxide. Even compared to electric fireplaces, which rely on coal-generated power in many regions, propane provides a cleaner and more efficient alternative.

Propane-Powered Appliances Mean Greater Efficiency

Builders who include propane appliances in their homes aren’t just offering a premium feature—they’re giving buyers a long-term financial advantage.

  • Clothes Dryers: Propane models dry clothes faster, use 20% less energy than electric models, and produce less wear and tear on fabrics.

  • Cooking Ranges & Ovens: Propane stoves heat more precisely than electric, reducing peak load strain on the grid while offering the performance preferred by professional chefs.

Reliable Power, No Matter the Weather

The Texas freeze of 2021 and other extreme weather events have reinforced a hard truth: grid power isn’t always reliable. A propane standby generator ensures that essential systems—including heating, refrigeration, and medical equipment—keep running when the grid goes down.

Unlike diesel, propane doesn’t degrade over time, making it an ideal long-term energy source for backup power. For homebuyers concerned about resilience and rising electricity costs, a propane generator is an investment in peace of mind.

A Long-Term Investment in Stability

Propane offers more than just lower energy bills. It provides homebuyers with financial stability and reliability in an unpredictable energy market.

  • Lower Maintenance Costs: Propane appliances last longer and require less maintenance than electric alternatives. A propane furnace, for instance, has an expected lifespan up to 50% longer than an electric heat pump.

  • Energy Independence: Buyers can store propane on-site, insulating them from fluctuating utility prices and grid instability.

  • Available Incentives: Many states, local governments, and utilities offer rebates for propane appliances, reducing the upfront costs for buyers.

Build Smarter, Sell Faster

For builders, energy efficiency isn’t just about meeting code—it’s about giving buyers a reason to say yes. Propane-powered homes offer lower operating costs, better comfort, and energy resilience, making them a compelling option in today’s market.

By incorporating propane heating, water heating, cooking, and backup power solutions into your projects, you’re not just building houses—you’re building homes that are smarter, more efficient, and more valuable to buyers.

Inspired by an article by the Propane Education & Research Council.

 

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