Propane vs. Electric: Comparing the Benefits & Cost for Home Heating

Choosing a home heating system is a long-term decision and a big investment. Propane and electric heat both work well on Delmarva, but the one that’s right for your home and family will depend on several factors.

Here are a few points to consider when deciding whether to heat your home with propane or electricity for the winter.

Propane furnaces or boilers burn fuel to produce heat. A propane tank on your property stores the fuel, and PepUp delivers more as you use it.

Electric systems work two main ways.

1. Resistance heaters, like non-heat-pump central heating systems and baseboard heaters, convert electricity directly into heat.
2. Heat pumps move warm air from outside into your home, even in cold weather, and reverse the process to cool your home in summer.

Delmarva Power raised electric rates twice in 2026, increasing the average residential bill by about 13 percent. Compared to local electricity rates, the price per gallon for propane has fluctuated very little in recent years.

Heating a 2,000 square foot home in Federalsburg, keeping the thermostat at the recommended winter setting of 68°F for the entire heating season, here’s what homeowners can expect to pay for heat in the winter:*

• Electric heat pump: $3,713
• Propane furnace: $5,065
• Non-heat pump electric central heat or electric baseboard: $9,284

Many older homes on Delmarva use electric baseboard heating and are the most expensive to heat. For propane users, there’s an advantage: a level payment plan, which averages the cost of propane over 11 months, means heating bills won’t look different from summertime propane bills. That helps homeowners budget, and doesn’t strain finances right around the holidays.

Propane furnaces typically deliver warmer air at the vent than electric heat pumps. Many homeowners notice the difference on the coldest days of the year.

Heat pumps lose efficiency as outdoor temperatures drop. Most rely on a backup electric resistance element during extreme cold, which increases electric usage right when rates are highest.

Power outages often follow winter storms. Electric heat, including heat pumps, stops working the moment the power goes out. Running a propane backup generator may help a homeowner restore power and heat, depending on the size of the generator.

Some propane heating options keep running without electricity. Vented and vent-free propane heaters use a standing pilot instead of a powered blower, so they still work during an outage. A central furnace with an electric blower will not work, propane or electric, unless it’s paired with a generator.

Both fuels have a real environmental footprint. Propane burns cleaner than heating oil, with fewer byproducts released at combustion.

Electric heat has no on-site emissions, but its overall footprint depends on how the electricity was generated. The regional grid still draws on a mix of sources, not all of them low-carbon.

Neither system is emissions-free. Homeowners weighing this factor should look at their specific electricity provider’s generation mix for an apples-to-apples comparison.

Propane systems need a tank, either owned or leased, plus regular delivery. PepUp visually inspects tanks at every fill and at least once a year, and maintains leased tanks as needed to keep them in optimal working condition.

Electric systems need enough electrical capacity to run the unit, and heat pumps require an outdoor compressor. No fuel storage or delivery scheduling is involved.

Up-front equipment costs vary by home and system size. A PepUp Energy Specialist can walk through options for new installations or conversions from oil or electric baseboard heating.

The right choice depends on your home’s construction, your area’s storm risk, and what you value most. Use the tool below to select what factors apply to you, and see which energy source best meets your needs.