Operating Cost: Heat Pump vs. Propane Furnace or Boiler
Whether a heat pump costs less to run than propane depends on the current propane price, electric rate, propane-system efficiency, and the heat pump's performance at each outdoor temperature. A dual-fuel design can use whichever system makes sense under the conditions, but the changeover temperature must be based on the actual rates and equipment.
For a published statewide reference, see EIA New Hampshire fuel prices.
What changes the operating-cost comparison
- Delivered propane price: use the price charged by the homeowner's supplier.
- Electric rate: use the supply and delivery cost shown on the current bill.
- Propane-system efficiency: compare the existing equipment's actual condition and AFUE.
- Heat-pump performance: use the selected model's capacity and efficiency at different outdoor temperatures.
- Control strategy: the changeover setting determines when each heat source runs.
Use current prices instead of a frozen example
Use the current delivered propane price and utility rate. The U.S. Energy Information Administration publishes statewide references, but the homeowner's supplier price and electric bill are the right inputs for a project. Enter them in our Heat Pump Cost Comparison Calculator to see how the result changes with outdoor temperature.
Where the crossover happens
There is no fixed statewide crossover temperature. It depends on current rates, the propane equipment's efficiency, the heat pump's low-temperature performance, and the control settings.
How dual fuel fits a propane-heated home
A dual-fuel design pairs a cold-climate heat pump with a propane furnace or boiler. A well-designed system gives the controls the ability to use the appropriate heat source as conditions change. Whether it lowers total cost depends on the home and current rates.
Other factors that affect the real-world comparison
- Fuel prices: NH residential propane prices have varied in recent years, and your delivered price varies by supplier, usage tier, and tank ownership. Electricity rates also vary by utility and supply contract.
- Cooling included: the heat pump provides AC in summer. The propane furnace does not. If you would otherwise buy or own a separate AC system, that cost should be factored in.
- Rebates and incentives: the federal 25C tax credit ended December 31, 2025, but NHSaves utility rebates still apply to qualifying heat pump installations and financing can spread the upfront cost.
- Equipment lifespan: heat pumps typically last 12 to 15 years; propane furnaces and boilers often longer. Replacement frequency affects long-term cost.
- Installation cost: if you are replacing a propane furnace or boiler anyway, the incremental cost of converting to a dual-fuel system can be modest, especially with rebates.
Run the math for your specific home
Plug your current propane price and electric rate into our Heat Pump Cost Comparison Calculator to see cost per million BTU at different outdoor temperatures. The crossover temperature shown above shifts with rates; the calculator updates in real time.
Schedule a consultation
If you are running a propane furnace or boiler and want to model what a heat pump or dual-fuel setup would actually cost to operate in your NH home, contact A.J. LeBlanc Heating or call 603-623-0412. We will run the numbers with your current rates and your home's actual heat load. Serving New Hampshire families since 1928.
Frequently Asked Questions
Is a heat pump cheaper to operate than propane in New Hampshire?
It often can be, but the answer changes with current rates, equipment, and outdoor temperature. We compare the homeowner's actual propane and electric prices before recommending a changeover strategy.
What is the crossover temperature for heat pump vs propane?
There is no fixed statewide crossover temperature. It depends on current rates, the propane equipment's efficiency, the heat pump's low-temperature performance, and the control settings.
How does a dual-fuel system know when to switch?
A smart thermostat or built-in control monitors outdoor temperature. When the temperature drops below the configured changeover setpoint, the system switches from heat pump to propane backup. When it rises again, it switches back. The homeowner does not need to do anything.
Will a heat pump alone work in a NH propane home?
For well-insulated NH homes, yes. For older homes with high heat loss, a dual-fuel pairing produces better results on the coldest days. We size the heat pump and configure the changeover to fit the specific home.
What rebates and tax credits apply?
The federal 25C Energy Efficient Home Improvement Credit ended December 31, 2025 and is not available for 2026 installations. NHSaves utility rebates remain available, with amounts varying by program and household income. See our post on the 25C tax credits ending for current status, or ask us for current rebate amounts.