As a household heating solution, propane is generally more costly than natural gas. Whereas propane costs on average $2,119 to heat a home during the cold season, natural gas costs an average of just $936, according to UGI EnergyLink in 2015, citing figures from the Energy Information Administration. While prices for propane heating were reported to be 20 percent lower in 2015 than they were in 2013, the cost of natural gas heating was substantially lower, despite remaining at comparable rates to the previous year.
Another issue with propane heating is that the prices are unpredictable and liable to spike more often those of natural gas, notes UGI EnergyLink. It can also be difficult to resupply during the peak season for household heating. The comparative safety of natural gas also makes it a more desirable option. Unlike dense propane, the lightness of natural gas means that it dissipates more quickly following a leak.
Despite the benefits, however, switching from propane to natural gas is not without substantial associated costs. One of the most significant of these is the cost of removing or at least emptying underground propane tanks. Often, propane tanks are not owned by their users and the gas provider will need to be paid to remove it.