Below is a summary of a very in-depth analysis provided by SC&G which was originally provided as an evaluation of Natural Gas vs. electric appliances and cost of operation. We have converted it to also apply to LP gas to provide the results as noted below. This analysis is based on September rates from Palmetto Electric and LP gas prices at $2.50 per gallon. There is no natural gas provided to Hilton Head, so, hence our effort to evaluate this other alternative primarily for electric water heaters vs. propane heaters. No evaluation of the cost of installation or capital costs are included in this "Operating Cost" analysis. However, a conventional electric water heater may cost $400 to $500, and a on-demand gas water heater may be $1,100 to $1,500 for equipment only not including any difference for electrical hook-up or gas rough-ins. Also it should be noted that on-demand water heaters should be serviced and inspected annually by a qualified plumber or technician.
As you will see below the most efficient grouping of appliances is the on-demand water heater and HP HVAC with strip heat system when considering LP gas, by a slight amount. Other operational cost which should be included is the annual inspection and servicing cost of a on-demand heater, and the additional initial capital investment.
Certainly gas and electric prices are subject to volatility, however, LP prices are likely to fluctuate more significantly than the Palmetto Electric Cooperative contracted rates, although there are several on-island providers of LP gas. Other considerations not factored into this analysis is the annual inspection and cleaning of on-demand systems, increased insulation and higher efficient HVAC systems we typically install in our homes, and more specific individual user requirements of temperature and gallons per minute demand.
When factoring in all of the considerations for the Hilton Head environment, we recommend the conventional electric water heater and electric HP HVAC systems. (Other options not evaluated here are water source heat pumps, solar heating, reclamation systems, heat-pump water heaters.)
BELOW IS COMPARISON OF LP(PROPANE GAS ONLY) vs ELECTRIC
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