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REBATE GUIDE
Comparison Guide

Heat Pump vs Propane Heat in Hawaii

How Hawaii's rebates, electricity rates, and propane costs compare — and what to calculate before switching from propane to a heat pump.

High confidenceLast checked: 2026-05-282 official sources
Quick Answer

Is a heat pump better than propane heat in Hawaii?

For many Hawaii propane users, switching to a heat pump meaningfully reduces annual heating costs. Propane is among the most expensive heating fuels per BTU. A heat pump with a COP of 2–3+ delivers the same heat for roughly half the operating cost or less, depending on electricity rates. Hawaii Energy Rebate Program rebates (estimated $100–$550) further reduce the net cost of switching.

Savings are not guaranteed. Verify your utility's electricity rate and current propane price before calculating payback.

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Heat pump vs. propane — key comparison factors

FactorPropane heatHeat pump
Fuel sourcePropane (delivered or tank)Electricity
Cost per BTUHigh — among most expensive fuelsLower with COP 2–3+
Price volatilityHigh — global commodityLower — utility rate changes
Upfront costLow (replace furnace)Higher, but Hawaii Energy Rebate Program rebates reduce it
Hawaii Energy Rebate Program rebateNot applicable$100–$550
Also cools in summer?No — separate AC neededYes — same system
Carbon footprintModerate-highLower with clean electricity
Tank ownershipTank rental or ownership requiredNo tank needed

What to calculate before switching from propane in Hawaii

Your current annual propane spend (gallons/year × current propane price per gallon).
Your utility's electricity rate ($/kWh) — compare this to the heat pump's expected COP.
The installed cost of the heat pump system after the expected Hawaii Energy Rebate Program rebate.
Whether weatherization (insulation, air sealing) is required or recommended first.
Payback period: installed cost after rebate ÷ estimated annual savings.
Whether you own or lease the propane tank — removal and cleanup costs vary.
Whether your electrical panel needs an upgrade for the heat pump.
Frequently Asked Questions

Is a heat pump better than propane heat in Hawaii?

For most Hawaii propane users, a heat pump lowers annual heating costs. Propane is among the most expensive heating fuels per BTU, and a heat pump with COP 2–3+ delivers the same heat for significantly less. Hawaii Energy Rebate Program rebates further reduce installation costs. Run the numbers with your actual rates.

What rebate does Hawaii offer for switching from propane?

Propane homes typically qualify for the highest heat pump rebate tiers through Hawaii Energy Rebate Program. Estimated range: $100–$550. Exact amounts depend on your utility and equipment. Verify with Hawaii Energy Rebate Program.

Related
Heat Pump vs OilRebate CalculatorHVAC Rebates 2025
Official Sources
2026-05-28