It being an unusually cool Sunday afternoon here in the RGV, I got thinking about the relative costs of electricity and propane for heating.
This is how I have it figured, anyone have any other thoughts?
In our present situation these are our costs:
Electricity: 15 cents per kW/h
Propane: 50 cents per lb.
(both are delivered prices)
1 kW/h = 3,412 BTU
1 lb propane = 21,600 BTU
Therefore 1lb propane is equivalent to 6.33 kW/h of electricity.
and that much electricty would cost us about 95 cents compared to the 50 cents for propane.
Our furnace efficency is not really known to me, but I guessing it is not very high, say in the 50 to 70% range.
If we apply assumed efficiency factors of 0.5, 0.6, and 0.7 to the calculation of the cost of propane, we end up with a propane cost of
50% efficiency: 1.00
60% efficiency: 0.83
70% efficiency: 0.71
I am not very optimistic about our furnace efficiency, therefore it is looking to me like there is very little difference in the cost of heating with electricity or propane.
It is long time since I had to make these kinds of calculations, am I on the right track?