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Propane vs. Electricity in Michigan: What’s the Better Deal?

Posted: January 27, 2017

Do the electric appliances in your home outnumber your propane gas appliances? You may be shocked to find out how much money you could start saving if you pulled the cord completely on your electric appliances and plugged into propane instead.

Your electric utility may like to sing the praises of what “a great value” electricity is, but the fact is, electricity is the most expensive energy source in Michigan. When you do an “apples-to-apples” comparison (see chart), propane turns out to be more than one-third less expensive than electricity. What’s more, Michigan propane prices recently reached a 12-year low!

Electricity costs a lot more than propane

Propane vs. Electricity

Costs based on $1.80 per gallon for propane and 11 cents per kilowatt hour for electricity. Source: Energy Information Administration.

Take propane water heaters as one example. They generally cost 30% less to operate than electric ones—or 60% less if you use a tankless propane water heater. And don’t forget comfort! Propane water heaters can produce about twice as much hot water as electric units–in the same amount of time. If you’re tired of your electric water heater leaving you in a cold shower, contact your local propane company about converting to a propane water heater. It’s a lot easier than you may think.

But don’t stop with water heaters! People are warming up to propane—and saving money—in many other ways too.

  • Avoid the limitations of cooking with an electric stove. Propane ovens and ranges cost significantly less to operate than their electric counterparts and provide a higher degree of control because of precise temperatures. Plus, a gas stove will continue to work during a power outage.
  • A propane clothes dryer gets laundry dry 25% faster than the typical electric model.
  • Propane heaters for the garage and other cold spaces are a great option because they’re much less expensive to operate than electric garage heaters. Vented propane gas space heaters are easy to install, incredible efficient and extremely safe.
  • On a cold Michigan night, propane-heated homes are much warmer than those that rely solely on electric heat. With a clean-burning, high-efficiency propane furnace, less than 10% of fuel is wasted in the combustion process. In comparison, more than two-thirds of the energy used by a power plant to generate and transmit electricity is wasted.

Read more about why propane is the hands-down winner for efficiency and cost-savings when compared to electricity. And remember to contact your local propane company about the many ways you can save money by pulling the cord on electric appliances and plugging into propane.