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Comparison Guide

Heat Pump vs Propane Heat in Utah

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

High confidenceLast checked: 2026-05-287 official sources
Quick Answer

Is a heat pump better than propane heat in Utah?

For many Utah 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. Rocky Mountain Power Wattsmart rebates (estimated $450–$1,700) 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 Rocky Mountain Power Wattsmart rebates reduce it
Rocky Mountain Power Wattsmart rebateNot applicable$450–$1,700
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 Utah

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 Rocky Mountain Power Wattsmart 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 Utah?

For most Utah 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. Rocky Mountain Power Wattsmart rebates further reduce installation costs. Run the numbers with your actual rates.

What rebate does Utah offer for switching from propane?

Propane homes typically qualify for the highest heat pump rebate tiers through Rocky Mountain Power Wattsmart. Estimated range: $450–$1,700. Exact amounts depend on your utility and equipment. Verify with Rocky Mountain Power Wattsmart.

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Heat Pump vs OilRebate CalculatorHVAC Rebates 2025
Official Sources