Decisions Oil, propane and wood East side
Keep burning propane, or switch to a heat pump?
Keep the propane furnace or Switch to a heat pump or Heat pump with propane back-up
Compared by the people who run this site. Updated . Rebates and prices checked November 3, 2026.
Between propane and a heat pump, fuel cost per unit of heat usually favors the heat pump, going by Washington's 2024 prices. The catch is money up front: outside Tacoma we found no rebate aimed at propane homes, so your furnace's age and your electric service decide the timing.
The verdict, by situation
If your propane furnace is more than 15 years old and you want cooling too
Bid a heat pump first. More than 15 years is ENERGY STAR's prompt to evaluate, and one outdoor unit would handle both jobs. Compare it against a new furnace in the same round of bids.
If your propane furnace is relatively new and your AC just failed
Add a heat pump and keep the furnace as back-up. ENERGY STAR describes dual fuel as a modest extra cost over an AC system when a furnace is relatively new. See dual fuel or all electric.
If your furnace is sound and nothing needs replacing
Keep it for now and plan ahead. Written bids you collect in a calm season are easier to compare than ones gathered during a breakdown.
If your household income is at or below 150% of Area Median Income
Check the local HEAR administrator before buying anything. State HEAR covers heat pumps and required panel or wiring upgrades, though amounts are set locally.
If you have Tacoma Power and a non-electric furnace
Ask about the variable-speed line. Tacoma Power lists $1,000 as of November 2026, the one offer found that names non-electric heat. City Light's instant discount and PSE's distributor line show no heat-type condition on the pages found, so ask.

Side by side
| Compare | Propane furnace | Heat pump |
|---|---|---|
| Cost per million Btu of heat, our arithmetic | $27.68, assuming 95% efficiency | $14.47 at COP 2.41 |
| Price you can watch | U.S. weekly average, Oct.-March only | Your electric bill |
| Delivery | Tank fill by a supplier | None |
| Summer cooling | None by itself | Yes |
| Rebates found | None | Mostly for electric-heat homes; HEAR by income |
| Cold-weather rating | No outdoor rating found | ENERGY STAR Cold Climate: COP at least 1.75 at 5F |
| Federal credit for 2026 | None found | None |
Sources under the table: EIA 2024 Washington prices, NEEA metered COP, EIA weekly prices, ENERGY STAR criteria, IRS FAQ. The table can't show your supplier's contract price, what your electric service can carry or how far your house sits from the nearest contractor.
What would change the answer
- A locked-in propane price far below EIA's figure. That would narrow the gap, so run your own numbers.
- Electric service that needs a costly upgrade. Bring that line into the comparison, and see whether HEAR covers it for your income.
- A wood stove doing much of the heating. Then the savings shrink, as wood stove keep or replace describes.
- A very cold site. Ask each bidder what their design does on the coldest nights and in an outage.
- Rooms a single unit can't reach. BPA-backed research found ductless "does not heat back rooms as effectively as a ducted system", which matters if you'd be leaving propane altogether.
- A new local or utility offer. Check at bid time, since nearly all utility rebates found require existing electric heat.
What it costs, with dates
Prices first, with dates. EIA's weekly U.S. average for residential propane was $2.730 a gallon for the week of October 26, 2026. That's a national figure, published only October through March, and EIA's tables show no Washington row.
For a statewide comparison, EIA's 2024 Washington price for HGL, a blend that includes propane, was $26.30 per million Btu, and electricity was $34.87. Our arithmetic turns those into $27.68 per million Btu of delivered heat from a propane furnace we assumed at 95% efficient, and $14.47 from a heat pump at the COP metered in Inland Empire ductless pilot homes in 2008-09. These are 2024 statewide averages and not your supplier's price, and duct losses aren't counted. Every row is on what heat costs.
No government or utility source gives an installed price for a propane furnace or a heat pump, so we can't give you one. Ask for written bids that itemize equipment and ratings, the Manual J load calculation, electrical work, permits, duct work, removal of the old furnace, and what happens to the tank.
Who does the work
Start with L&I's contractor lookup and confirm any bidder's registration. Heat pump refrigerant work needs an EPA-certified technician. Outside city jurisdictions and Tacoma Power's service area, L&I handles electrical permits, and they're bought before work starts.
Tank, regulator and gas line questions go to your propane supplier or a contractor, not to you. Ask your supplier for its own safety instructions and keep them handy. What you can do is change the filter, keep the outdoor unit clear and check a breaker or switch. If a CO alarm goes off, everyone gets out first, then call 911 from outside.
How does back-up work on a rural property?
Keeping the propane furnace as back-up is a genuine option, and it can suit an older house that's far from town. The heat pump covers mild and moderate weather, and the furnace is there for the hardest cold. Spokane's normals give a feel for how rare the deep cold is, with 2.2 days a year at 0F or below, though your site may differ.
A ductless head in the main room is a smaller first step for a house without good ducts. Remember what the field work showed: it serves the main living area, and other heat keeps running elsewhere. It won't take a propane furnace out of service by itself. Compare with ductless or ducted.

Are there any propane conversion rebates in Washington?
Few turned up, and you should plan as if you won't get one. PSE's rebate pages showed no oil or propane conversion rebate (archived copy, July 2026), so confirm with the utility. Snohomish County PUD and Clark Public Utilities tie theirs to electric heat. Avista's page shows no heat pump amount at all (archived copy, June 2026), so confirm with the utility as well.
Seattle's Clean Heat program is for oil, not propane. The state's federally funded HARP and HOMES rebates haven't launched and aren't retroactive, so don't budget for them. Details and timing are on rebate or wait, and other rural choices are on the east side starting page.
What people ask next
Why is there no weekly propane price for Washington?
EIA's weekly tables list regions through the Rocky Mountains but show no Washington or West Coast row. Your supplier's quote is the number that counts.
Can I replace a propane furnace with a ductless head alone?
Not as a whole-house plan. Metered ductless homes kept other heat running, and back rooms are the weak spot. Plan for several heads, ducts, or back-up.
Does propane count as natural gas for gas utility rebates?
Don't assume so. PSE's fuel-switching offer is written for income-qualified PSE gas customers (archived copy, May 2026), so confirm with the utility.
Decide next
Dual fuel or all electric: which heat pump setup fits your house?
- Dual fuel (heat pump plus furnace)
- Houses with a gas furnace that is still relatively new
- All electric (heat pump plus electric back-up)
- Houses with no gas, or a furnace at the end of its life

Stay on heating oil, or switch to a heat pump?
- Stay on oil for now
- A sound newer furnace and no tank trouble
- Switch to a heat pump
- Seattle homes eligible for Clean Heat, and homes with worn oil furnaces

Should a Spokane house have a furnace or a heat pump?
- Gas furnace
- Gas homes replacing a failed furnace, with little interest in summer cooling
- Heat pump with back-up
- Electric-heat homes, and gas homes that also want cooling

Where this came from
- EIA: heating oil and propane weekly prices, checked November 3, 2026.
- EIA: Washington residential energy prices, 2024, checked November 3, 2026.
- Northwest Energy Efficiency Alliance: ductless field metering report, checked November 3, 2026.
- Bonneville Power Administration: ductless with electric forced-air furnaces, checked November 3, 2026.
- ENERGY STAR: when to replace, checked November 3, 2026.
- ENERGY STAR: air-source heat pumps, checked November 3, 2026.
- ENERGY STAR: heat pump key criteria, checked November 3, 2026.
- NOAA NCEI: Spokane annual normals, checked November 3, 2026.
- Washington Commerce: HEAR, checked November 3, 2026.
- Washington Commerce: IRA Home Energy Rebates, checked November 3, 2026.
- Tacoma Power: heat pump rebates, checked November 3, 2026.
- Puget Sound Energy: heating rebates (archived copy, July 2026), checked November 3, 2026.
- Puget Sound Energy: fuel switching rebate (archived copy, May 2026), checked November 3, 2026.
- Snohomish County PUD: heating rebates, checked November 3, 2026.
- Clark Public Utilities: ductless heat pump program, checked November 3, 2026.
- Avista: Washington single-family rebates (archived copy, June 2026), checked November 3, 2026.
- IRS: FAQs on sections 25C and 25D under Public Law 119-21, checked November 3, 2026.
- L&I: verify a contractor, checked November 3, 2026.
- L&I: electrical permits, fees and inspections, checked November 3, 2026.
- EPA: Section 608 technician certification, checked November 3, 2026.