Heat Pump vs Propane Heat in Upstate NY & Vermont: Cost, Comfort, Reliability
A Mitsubishi heat pump typically saves about $855 per year compared with propane in Upstate NY and Vermont, and it removes price swings and delivery runs. You can keep propane for cooking or a generator, or as hybrid backup.
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The short comparison
| Mitsubishi heat pump | Propane | |
|---|---|---|
| Energy source | Electricity, moving heat from outdoor air | Delivered fuel, burned |
| Typical annual savings | About $855 per year versus propane (estimate) | Baseline |
| Price stability | Utility electric rates, regulated and more stable | Market price, changes by delivery |
| Cooling | Included | Needs separate AC |
| Fuel deliveries | None | Scheduled or on call |
| Performance in deep cold | Hyper-Heat: 100% Capacity to -13°F, operates down to -35°F | Strong |
Savings depend on your propane price, your house and how much of the heating the heat pump carries. The figures here are typical estimates. The only way to know your own number is to enter it in the Heating Cost Calculator.
Propane price volatility
Propane is a commodity. Its price shifts with the energy market, regional supply and the season, and it tends to rise when you need it most, in January and February. Many homeowners pay by the delivery, so a cold snap can mean a surprise bill, or a conversation with the supplier about a minimum purchase.
Electricity is not immune to increases, but it is regulated and moves slowly. NY residential electricity is about $0.27 per kWh. Because a heat pump delivers more than one unit of heat for each unit of electricity, the gap in cost per unit of delivered heat usually widens in the heat pump's favor when propane spikes.
That is the real benefit for many families: not just a lower average, but a bill you can predict. Budget billing from your utility smooths it further.
The BTU math, in plain words
Propane contains a fixed amount of heat per gallon, and a furnace or boiler captures most of it. If you burn the fuel, you get at most one unit of heat per unit of fuel energy, less whatever goes up the flue.
A heat pump works differently. It uses electricity to move heat from outside air into your house. One unit of electrical energy can bring in several units of heat. That multiple is called the coefficient of performance (COP), and it is why a heat pump can heat for less even when electricity looks more expensive per unit than propane.
How to compare for your home
- Find the price per gallon on your latest delivery slip.
- Enter it, your gallons used and your electric rate in the calculator.
- Compare at the current propane prices entered in the calculator, not last year's.
The calculator does the unit conversion and the efficiency assumptions so you don't have to.
Comfort and reliability
Comfort. A heat pump delivers steady, modulated heat instead of on-off blasts, and each zone is set independently. Indoor units can be as quiet as 19 dB. Propane furnaces blow hot air in cycles; some rooms run warm and others cool.
Reliability. Propane relies on deliveries, tank levels, regulators and an ignition system. Heat pumps rely on electricity. In a power outage a heat pump stops unless you have a generator, while a propane furnace with an electric blower often stops too.
Safety. No combustion in the living space and no fuel storage tank for the heat pump itself.
Cold-climate performance. Hyper-Heat holds 100% Capacity to -13°F and operates down to -35°F.
If your propane furnace is aging, compare repair costs against a replacement; our furnace repair and heat pump vs furnace pages explain the tradeoffs.
Keep propane where it makes sense
You don't have to give up propane entirely.
- Cooking. Many people prefer a gas range. A small cylinder or a modest tank lasts a long time.
- A standby generator. If you run a propane generator, you still have a reason to keep the tank.
- Hybrid backup. The heat pump runs as the primary source. The propane furnace remains for the rare deep-cold night or an extended outage if you have a generator.
- Fireplaces and water heating. These can stay as is for now.
Using less propane can mean fewer deliveries. Ask your supplier whether a lower annual use changes your account terms. We keep your options open by sizing the heat pump to carry the house when possible, and by telling you if backup is worth keeping.
What it costs to switch
Mitsubishi single-zone systems are $10,000 to $15,000 installed. Whole-home multi-zone systems start at $15,000, with larger homes costing more. Installation takes about a day for a single zone and two to three days for a whole-home system, with one 3-inch wall hole per ductless indoor unit.
Rebates through NYS Clean Heat (National Grid and NYSEG) in New York and Efficiency Vermont and Green Mountain Power in Vermont can reduce the net price. We confirm exactly what you qualify for at the free estimate and handle the entire rebate application. Rebates are expected to shrink or end in 2027, so it will never cost less than it does today.
Financing is 18 months interest-free, or up to 11 years at 9.99% APR through our financing partner. See rebates and savings and financing. Moving from oil? Read the oil conversion guide.
Run your numbers
Two minutes with the Heating Cost Calculator beats any rule of thumb. Enter your fuel, your recent spend and your home size, then see propane against Mitsubishi options side by side. Homeowners who complete it before the estimate get $250 off through the savings code on the report.
At the free in-home estimate we check the result against your actual house. We perform a load calculation, look at your panel and give a written proposal. See what a heat pump costs to run per month for how bills look through the season.
Frequently asked questions
Is a heat pump cheaper than propane?
Superior CO-OP HVAC estimates that switching from propane saves about $855 per year on average. The exact number depends on the propane price you pay, your electric rate and your home. The Heating Cost Calculator at /calculate/ compares both using current propane prices entered by you.
What happens to my propane when propane prices spike?
Superior CO-OP HVAC notes propane is a market-priced commodity, so costs can jump in winter when demand is highest. Heat pump electricity is utility-regulated and moves more slowly, which makes monthly bills easier to predict. Budget billing from the utility can smooth them further.
Can I keep propane for cooking or a generator?
Yes. Superior CO-OP HVAC often leaves propane in place for cooking, a standby generator or hybrid backup while the heat pump carries the heating. Using less propane can reduce delivery frequency. Ask your supplier whether lower use changes your account terms. Any savings figure should be treated as an estimate until your own numbers are entered.
Will a heat pump heat my house at -15°F?
Superior CO-OP HVAC installs Mitsubishi Hyper-Heat units, which deliver 100% Capacity to -13°F and operate down to -35°F. With a proper load calculation and zoning, they handle Upstate NY and Vermont cold. Some homeowners keep propane as backup for rare extreme nights.
How much does it cost to replace propane heat with a heat pump?
Superior CO-OP HVAC installs Mitsubishi single-zone systems for $10,000 to $15,000, and whole-home multi-zone systems start at $15,000. Rebates and financing lower the net cost. We confirm what you qualify for at the free estimate and handle the application. Financing and rebates are covered in the written proposal, which you receive for free.
Do I need to remove my propane tank?
Superior CO-OP HVAC does not require removal if you keep propane for cooking, a generator or backup. If you retire propane completely, tank ownership and pickup depend on your supplier, so check with them first. We discuss the options at the free estimate.
See propane against Mitsubishi for your house. The Heating Cost Calculator takes two minutes, and finishing it before your estimate earns $250 off. Book your free estimate when you're ready.
Rebates Available
New York homeowners switching from oil, propane or electric baseboard to a Mitsubishi cold-climate heat pump qualify for National Grid or NYSEG rebates, and Vermont homes qualify through Efficiency Vermont plus utility bonuses. Rebate amounts change by program and tier — we tell you exactly what your home qualifies for at the free in-home estimate and handle the entire application for you.
Don't take our word for it
“This company operates like a functional family. Everyone is skilled, knowledgeable, and has a healthy attitude and work ethic. They were here when they said they'd be and did what they said they'd do with total attention to detail. There's no substitute for peace of mind.”
“Great interaction all around with the company. Had them install a mini split system. Excellent customer service — from the estimate on site visit to the install, each individual was kind and professional.”
“Superior CO-OP HVAC installed my Mitsubishi mini split and did a great job. It's so quiet and cools my place quickly. I highly recommend them.”
What is your oil, propane or gas heat really costing you?
Enter your ZIP, home size and current fuel. See your real annual cost, what a Mitsubishi heat pump would cost to run instead, and your 5-year cost of doing nothing.
- Your number, not an average. Modeled on your ZIP's climate, your fuel price and your system's age.
- Three paths compared. Single-zone, hybrid with your existing furnace, or whole-home Hyper-Heat.
- Rebates confirmed for you. We tell you exactly what you qualify for at the free estimate and handle the application.
- Emailed to you. Keep the report. Nobody calls unless you ask us to.