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Competition heats up
July 1, 2009 By: Tom Jaenicke LPGas
Propane marketers will finally have credible information to use when competing against heat pumps and geothermal and fuel oil systems.
In a recently completed Propane Education & Research Council (PERC) project, propane-fueled forced air and hydronic heating systems were objectively compared with a variety of other heating systems in a virtual home analysis in different climate zones across the United States.
The study comparisons, performed by Newport Partners LLC, included air source heat pumps, ground source heat pumps (geothermal) and fuel oil and propane forced air and hydronic heating systems. Standard, high-efficiency and even dual fuel system comparisons were made. Each system also was examined to see how “green” it is, especially in terms of its carbon emissions.
Here are some key findings to talk about with builders, heating and cooling contractors and consumers in your marketing area.
• Propane-fueled, high-efficiency heating systems are an affordable choice for consumers. The installed cost of propane heating systems can be less than half the cost of more exotic systems such as geothermal. When you add the installed cost and the annual energy cost together, the promise of lower monthly energy bills with geothermal systems can’t always overcome those high system costs. In today’s economy, consumers are looking for affordable ways to gain efficiency, and propane heating systems offer great value at a price that fits many more pocketbooks.
• Installing or upgrading to a high-efficiency propane furnace system usually offers the fastest, simple payback for consumers. Spending extra money to go from a standard-efficiency heating system to a high-efficiency propane model pays for itself quickly. In most cases, this payback is less than one year. Don’t forget about the generous federal tax credits and state incentives currently available to make such upgrades even more affordable. You could grumble about losing those extra gallons of propane usage as the efficiency is increased, but it sure beats losing the heating load to another form of energy.
• Propane-fueled heating systems generally create much lower CO2 emissions than electric-based heating systems such as heat pumps. A growing number of consumers will consider this when making energy-choice decisions. Pending carbon (coal) tax legislation will only accelerate consumer awareness of CO2 emission sources. The National Propane Gas Association, PERC and the American Gas Association need to work hard to raise consumer awareness of the site-to-source CO2 emissions produced at coal-fired power plants, the dominant source of electricity in this country. Hopefully, the National Energy Conversation project that is currently under way will help.
• Air source heat pumps combined with high-efficiency propane heating systems offers good performance in moderate to warmer weather climates. These dual fuel systems offer consumers high-efficiency heating performance and economy of operation in varying weather conditions and in times of fluctuating energy costs. Sophisticated computer controls now allow the heating system to change from one energy source to another based on peak operating efficiency and can even take into consideration the energy cost comparison of electricity and propane. Yes, that means consumers will be able to hedge against energy price spikes by easily choosing the best energy cost option to heat their homes and switch back and forth at will.
• Heating equipment manufacturers are finally recognizing the advantages of coupling high-efficiency gas equipment with electric heat pumps instead of using traditional electric strip heat as a backup for cold weather heating performance. This will put propane energy on site for more homes, and that opens the door for propane marketers to sell the benefits of the many other uses of propane in the home.
An early review of the findings from the heating analysis study indicates that installed cost, monthly operating cost, emissions and comfort all matter to consumers. Propane heating equipment is well positioned to produce in all of these areas. Expect PERC to use this information and other good news from the study to communicate with builders, other construction professionals and consumers. Don’t expect PERC can make this happen effectively without the partnership of propane marketers in the effort.
The complete heating analysis report will be available for review this month. Study it and seek out ways to communicate the benefits of propane heating equipment to builders, heating and cooling contractors and present and future propane customers at the local level.
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