Energy Efficiency and Resilience of Building and Renovating With Propane  

Exploring propane’s energy advantages for residential renovations and new construction

Sponsored by PROPANE Energy for Everyone | By Amanda C Voss, MPP

Building a Resilient Home

Power outages are becoming a more frequent fact of life. On average, U.S. electricity customers experienced approximately five and one-half hours of electricity interruptions in 2022, according to the U.S. EIA’s recently released Annual Electric Power Industry Report.7 While weather has always been a leading cause of power outages, the number of weather-related outages has escalated dramatically in recent years, increasing by approximately 78% between 2011-2021 when compared with the previous decade, according to data compiled by Climate Central. Residents in Texas, Michigan, California, North Carolina, and Pennsylvania are particularly vulnerable, as these states suffer the largest number of weather-related power outages.

Figure courtesy of Propane Education & Research Council

Propane brings exceptional clean energy benefits to the table, including distinct reductions in harmful emissions.

According to the DOE, outages are also lasting longer. A power outage can place a heavy burden on a family. Even short outages, lasting less than four hours, cost homeowners an average of $1,250. Still, only 27 percent of homeowners report having any source of backup power.

Photo courtesy of Propane Education & Research Council

Having energy on site provides reliable peace of mind for homeowners.

In areas where natural disasters occur, many builders have discovered the value of marketing more durable homes. This is certainly true for net zero or off-grid homes that may utilize multiple forms of power, including solar and wind. Propane standby generators offer a powerful, reliable way to protect homes and families, as well as buildings and businesses, from the damage a power outage can cause. A standby generator powered by propane offers definite advantages over other fuel source generators. Propane doesn’t degrade over time, unlike diesel or gasoline, making it an ideal standby power fuel. Propane produces significantly fewer greenhouse gas emissions than diesel or gasoline and is non-toxic, non-poisonous, and won’t contaminate soil or water. Propane can handle an entire home’s energy needs for days, unlike solar- or wind-powered systems. Permanently installed and supplied by an above- or below-ground tank, a propane standby generator starts automatically, the moment the power goes down, supplying supplemental electricity in as little as 10 seconds after an outage. A propane standby generator provides homeowners heating and cooling, lighting, refrigeration, and the amenities their neighbors are without after the power is knocked out. A reliable propane standby generator can be a key part of resilient, self-contained energy design, which allows a house to continue providing the primary function of a home after a disaster. On-site generators allow a home to resist hazards brought on by major disasters, such as damage to appliances or electronics, spoiled food, loss of heat or air conditioning, hotel costs, and more. Resilience through on-site power reduces the magnitude or duration of a disruptive event to a property and the impact on homeowners.

Photo courtesy of Propane Education & Research Council

Propane water heaters, furnaces, and boilers use less energy, cost less to operate, and have fewer emissions as compared to electric models.

REMODELING WITH PROPANE FOR EFFICIENCY AND ECONOMY

In the winter of 2023–2024, about 4.79 million households in the United States used heating oil (distillate fuel oil) as the primary heating fuel, and about 82% of those households were in the U.S. Northeast Census Region, according to the EIA.8

Heating oil and diesel fuel are closely related petroleum products called distillates. Heating oil is sold mainly for use in boilers and furnaces, for space heating, and in water heaters. Nearly all of the heating oil consumed in the United States is produced from crude oil, making it an expensive and carbon-heavy fuel source.

Heating oil systems can be converted to propane today and have an immediate impact on reducing emissions. Additionally, choosing a propane conversion instead of an electric conversion reduces the installation and operating cost, when compared to electrical equipment.

Conversion from heating oil to propane is easy, inexpensive, and reduces emissions. In designing new systems or replacing current heating oil boilers and furnaces, the propane HVAC equipment will have a similar footprint, but higher efficiencies and eliminate the environmental risk of spilled oil. Propane is better for the environment, with systems producing 12 percent fewer greenhouse gas emissions and 80 percent fewer NOx emissions compared with a heating oil furnace. Like heating oil, propane is stored on site, providing security and independence for homeowners. Propane systems have lower overall energy costs compared with heating oil systems. Comfortable, consistent warmth is not the only benefit of a propane heating systems. Propane gives homeowners additional flexibility, beyond home heating. It can provide exceptional energy performance in water heating, cooking, clothes drying, fireplaces, and backup power generation applications. Its versatility far exceeds the limitations of fuel oil.

Confronting the cost of any energy conversion is a reality. While propane is cheaper than oil for home heating, some homeowners may question the upfront costs of converting fuel sources. Switching to propane is not a small investment, but the payoffs can be big. Given current oil prices, payback for the average conversion project can be expected within 2 to 3 years. That is an expedited timeline compared with years past, when oil prices were lower. Propane suppliers also emphasize the benefits beyond space heating, once propane is onsite. Propane can be added to fuel gas stoves, dryers, backup generators, and water-heating appliances, helping curb electricity costs. Not only is propane a less expensive fuel than oil, but furnaces and boilers powered by it are more efficient than their oil-fueled counterparts and have lower annual maintenance costs. Another benefit of propane is reduced insurance costs. Most homeowner policies do not include coverage for an oil spill, forcing owners to purchase separate liability insurance to guarantee protection in the case of a toxic spill. The impact of a home heating oil spill can be devastating, with oil seeping into the soil and causing damage that can require extensive soil remediation. With propane, this risk is eliminated. A propane release is very rare, but if it does happen and propane is released into the air it can dissipate harmlessly.

Any remodeling conversation should also factor in costs avoided. When evaluating switching from oil to electricity, homeowners have to calculate transitioning from 60 to 100 amperage service up to 200 and 400 amps. That upgrade alone can cost more than $6,000, even before new equipment costs and retrofit costs are factored in. However, selecting propane as a replacement for fuel oil means avoiding the need to increase amperage while providing efficiencies of 98 percent or more. For reference, heating oil furnaces typically provide efficiencies between 60 and 80 percent.

While the ultimate goal for many homeowners is to lower utility bills and improve comfort, making the switch to propane brings several additional benefits. Many homeowners are relieved to rid their basements of a 200-plus-gallon oil tank, freeing up square footage and eliminating the potential for toxic leaks. Whether the space relies on space heating, forced air heat, or a boiler, heating with propane creates a healthier indoor environment and more comfortable heat. Oil furnaces also require considerably more maintenance due to the buildup of soot and carbon. “That’s an energy cost in my opinion,” says Tom Soukup, principal of Patriot Water Heater Co. in Lancaster County, Pennsylvania. “Gas is cleaner and easier to maintain. Overall, propane is a much better solution than using oil.” Oil furnaces can be vented only one way: up. That can present installation challenges. Propane furnaces are more flexible because they can use existing vent paths or vent out of a side wall. More homeowners are also prioritizing the environment. Compared with oil, propane for space heating is the greener option, producing 38 percent fewer greenhouse gases.

CAPTURING A RENEWABLE FUTURE WITH PROPANE

4Using propane as an energy source means harnessing an available clean technology to reduce emissions while still meeting energy needs. Propane is clean and non-toxic. Propane is abundantly available, and the growth of renewable propane means it can be used for generations to come.

Accelerated Efficiency on the Horizon: Renewable Propane

Figure courtesy of Propane Education & Research Council

Comparison of the amount of carbon dioxide (CO2) emissions produced per unit of energy of major fuel sources.

“Propane is clean today and even cleaner tomorrow.”

Renewable propane provides a truly renewable energy source because it is made by converting plant and vegetable oils, waste greases, and animal fat into fuel. This not only circumvents disposal of waste grease and oil, but it also allows for a circular energy source.9 Renewable propane has the same great features as conventional propane—reliability, portability, power, and reduced carbon emissions—but with even lower carbon emissions when compared with other energy sources.

While the most common form of renewable propane today is a byproduct of renewable diesel and sustainable aviation fuel produced from used cooking oil, more and more renewable propane is being generated from the seed oil of the camelina plant. Also known as camelina sativa or false flax, camelina is a member of the mustard family and a relative of cabbage, kale, and cauliflower. Camelina oil is a new source for renewable diesel and produces renewable propane with the lowest carbon intensity currently available. Critically, camelina is not a food crop, nor does it compete with food production. Camelina is a cover crop and is completely waste-free. The seed produces 40% oil (twice the amount yielded by soybean), the remaining meal is FDA approved for cow and chicken feed, and the husks are used for mulch. The camelina plant is beneficial for farmers because it enriches the soil and prevents erosion when fields are fallow and provides additional income without the need for new equipment.

Renewable propane delivers a high-energy conversion so that BTUs aren’t wasted, and it is price competitive. At the point of combustion, renewable propane is carbon neutral, meaning that no new carbon is added to the atmosphere when renewable propane is burned. Renewable propane has an ultra-low carbon intensity; as low as 19, or 7 with a meal credit. Under a meal credit, the seed oil is used for fuel and the remaining plant fiber is used for feedstock. By comparison, the average carbon intensity score for electricity in the U.S. is 130. Because renewable propane’s chemical structure and physical properties are the same as conventional propane, renewable propane can be used for all the same applications without needing any system or equipment changes.

U.S. fuel processors are making renewable propane today, and the push for cleaner liquid fuels such as sustainable aviation fuel and renewable diesel fuel, will lead to a sharp increase in renewable propane production.

SUMMARY

Choosing propane for a residential project secures forward-thinking environmental benefits, including reduced greenhouse gas and NOx emissions, as well as lowered energy costs. The energy density of propane allows home equipment and appliances to perform more efficiently. Since propane is designed to be safely delivered and stored on site, it offers energy security. The security, efficiency, and environmental profile of propane provide it with unique advantages when compared against other energy sources, like electricity or heating oil. With its flexibility, propane provides a good match for renovation projects seeking greater efficiency. Propane is ultimately an adaptable and high-performance energy source for any home’s portfolio, capable of contributing to net zero energy homes and environmental qualifications, including LEED for Homes (LEED H v4) and the 2015 National Green Building Standard (NGBS).

 

END NOTES


1GREET 2021. https://www.energy.gov/eere/greet.
2GTI Report.
3Carbon Dioxide Emissions Coefficients. U.S. Energy Information Administration. September 7, 2023. https://www.eia.gov/environment/emissions/co2_vol_mass.php. Accessed July 24, 2024.
4(2021) EPA - CHP Benefit. https://www.epa.gov/chp/chp- benefits
5https://www.axiom-energy.com/_files/ugd/7a0ad4_a74da8efef054a6e9030649827b90169.pdf?index=true. Accessed August 8, 2024.
6“U.S. electricity customers averaged five and one-half hours of power interruptions in 2022.” Today in Energy. U.S. Energy Information Administration. January 25, 2024. https://www.eia.gov/todayinenergy/detail.php?id=61303#:~:text=On%20average%2C%20U.S.%20electricity%20customers,in%202022%20compared%20with%202021. Accessed July 25, 2024.
7“Heating oil explained.” U.S. Energy Information Administration (EIA). https://www.eia.gov/energyexplained/heating-oil/use-of-heating-oil.php#:~:text=Who%20uses%20heating%20oil%3F,the%20U.S.%20Northeast%20Census%20Region. Accessed July 30, 2024.
8(2021) Renewable Propane as a Sustainable Fuel Solution in California. https://www.gladstein.org/renewable-propane- sustainable-fuel-solution-california/.

 

Amanda C Voss, MPP, is an author, editor, and policy analyst. Writing for multiple publications, she has also served as the managing editor for Energy Design Update.

LEARNING OBJECTIVES

Evaluate the environmental benefits provided to a project by propane, including reduced greenhouse gas and NOx emissions and lowered energy costs. Conduct a thorough comparative analysis of propane-fueled systems through the lens of energy and performance. Outline the profile of environmental and cost advantages for a renovation project when converting from heating oil to propane. Validate why propane is both an adaptable and renewable energy source, as well as demonstrate how this fuel contributes to net zero energy homes and environmental qualifications, including LEED for Homes (LEED H v4) and the 2015 National Green Building Standard (NGBS).

ALL CREDITS

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Approved for structured learning

This course can be self-reported for Learning Units to the Architectural Institute of British Columbia

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Course may qualify for Learning Hours with NWTAA

Course eligible for OAA Learning Hours

This course is approved as a core course

Originally published in Architectural Record

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Originally published in September 2024