Case Study: Propane-to-Electric Heat Pump Conversion in a 1985 Windsor Split-Level
This case study documents a 2025 heat pump conversion from propane heating in a 2,400 square foot 1985 split-level in Windsor's Wilson neighborhood. Unlike most Hartford County homes that use natural gas or oil heating, this property used propane (LP gas) for primary heating since 1985 due to absence of natural gas service in the immediate area. The project demonstrates propane-to-electric economics, which differ substantially from oil-to-electric and gas-to-electric conversions due to propane's typically higher per-BTU cost.
Customer Situation
The homeowners had owned the 1985 split-level for 7 years before deciding to address aging propane heating:
- Existing equipment: 2014 Goodman 80% AFUE propane forced-air furnace (11 years old); 2014 Goodman 14 SEER central AC; 2014 above-ground 500-gallon propane tank (rented from propane supplier).
- Annual heating cost: $4,280 (winter 2024-2025) for propane; substantially higher than equivalent natural gas heating due to propane premium.
- Annual cooling cost: $580 (summer 2024) for central AC; typical for moderate-efficiency equipment.
- Propane supplier dependence: Customer dependent on propane supplier scheduling, pricing, and tank rental; propane prices fluctuated $2.40-$3.85/gallon during ownership; substantial unpredictable cost variation.
- Natural gas unavailability: Customer area lacks natural gas distribution; nearest natural gas main approximately 1,200 feet from property; natural gas extension cost prohibitive.
- Customer priorities: Eliminate propane heating dependence; access stable electricity pricing instead of variable propane pricing; pursue electrification with environmental benefit; reduce ongoing operating costs; long-term home retention (15+ year horizon).
- Home characteristics: 1985 split-level with reasonable envelope (R-30 attic from 2019 upgrade, R-13 walls original, double-pane windows from 2018 replacement).
- Electrical service: 200A service from original 1985 construction; adequate for heat pump installation.
Diagnostic Visit and Propane Economics Analysis
July 2025 consultation visit:
- Manual J calculations: Heat loss 62,000 BTU/hr at Hartford 4°F winter design; cooling load 32,000 BTU/hr at 88°F/73°F summer design.
- Propane economic analysis: Customer was consuming approximately 1,150 gallons propane annually at average $3.75/gallon = $4,313; substantial fuel cost. Equivalent natural gas would cost approximately $1,890 (about 56% less) if available; heat pump electricity approximately $1,100 (75% less than propane).
- Heat pump sizing: 3-ton (36,000 BTU/hr) appropriate match; cold-climate equipment selected for Hartford winter range.
- Brand consideration: Customer evaluated multiple options; Bosch IDS 2.0 selected for: competitive pricing relative to premium brands, German engineering reputation, growing Connecticut service network, equipment availability.
- Backup heating strategy: Electric resistance heat strip for extreme cold; propane equipment removed entirely (customer ready for complete propane elimination).
- Propane tank disposition: Propane supplier scheduled tank removal as part of project; ended ongoing tank rental costs.
Solution Scope and Equipment Selection
Equipment Selected
- Bosch IDS 2.0 (Inverter Ducted Split) heat pump: 3-ton (36,000 BTU/hr) cooling/heating capacity; variable-speed inverter compressor; SEER2 20.5, HSPF2 10.0; cold-climate rated for full heating to 0°F.
- Bosch IDS 2.0 air handler: Matched indoor unit; ECM variable-speed blower; integrated 10 kW electric resistance backup heat strip; located in basement utility space replacing old propane furnace.
- Bosch BCC100 thermostat: Communicating thermostat compatible with heat pump operation; programmable scheduling.
- Ductwork retention: 1985 ductwork with 2018 sealing improvements retained; minor additional sealing during installation.
- Electrical infrastructure: Dedicated 240V circuits for outdoor unit (40A) and air handler with heat strip (50A); panel adequate after assessment.
- Old equipment removal: 2014 Goodman propane furnace and AC removed; propane supply line capped and removed; chimney sealing (no longer used for furnace venting).
- Propane tank removal: 500-gallon above-ground propane tank scheduled for removal by propane supplier; final tank reading documented; rental contract terminated.
Installation Process
Project completed September 2025 over 4 working days:
- Day 1: Old equipment removal (furnace and AC); propane supply line removal; basement preparation; coordination with propane supplier for tank removal.
- Day 2: Electrical work; dedicated circuit installation; outdoor unit pad placement; refrigerant lineset routing.
- Day 3: Bosch outdoor unit placement and refrigerant connections; indoor air handler installation; backup heat strip integration; ductwork connections.
- Day 4: System fill and refrigerant charging; thermostat installation and configuration; commissioning at heating and cooling modes; customer walkthrough.
- Coordinated tank removal: Propane supplier removed 500-gallon tank 1 week after HVAC installation; concrete pad remained in place for future use.
Performance Through 2025-2026 Annual Cycle
System operating since October 2025. Performance documented:
Winter 2025-2026 (Heating Performance)
- Mild weather (35-50°F): Heat pump operates efficiently at low capacity; minimal electricity consumption.
- Cold weather (15-35°F): Heat pump capacity adequate; setpoint maintained.
- Severe cold (5-15°F): Heat pump operating at higher capacity; brief backup heat strip activation during morning warm-up periods.
- Extreme cold (below 5°F): Backup heat strip activated more frequently; heat pump continues providing substantial heating contribution.
- Backup heat strip usage: Total approximately 48 hours across winter; moderate use with adequately sized equipment.
- Winter 2025-2026 electricity for heating: Estimated 5,180 kWh @ $0.22/kWh = $1,140.
Summer 2026 (Cooling Performance)
- Cooling-season electricity: Estimated $385 for cooling (vs. $580 previous year); 34% reduction.
Energy Cost Comparison
- Total heating cost 2025-2026: $1,140 (vs. $4,280 propane heating previous year) — 73% reduction.
- Cooling cost 2026: $385 (vs. $580 previous year) — 34% reduction.
- Combined annual energy savings: $3,335 first year actual.
- Tank rental eliminated: $180/year previously paid for tank rental; now eliminated.
- Total annual operational savings: $3,515.
Investment and Rebate Summary
- Bosch IDS 2.0 outdoor unit: $5,400
- Bosch IDS 2.0 air handler: $2,840
- 10 kW backup electric heat strip: $640
- Bosch BCC100 thermostat: $440
- Refrigerant linesets, insulation, fittings: $1,240
- Electrical work (2 dedicated 240V circuits): $1,840
- Old equipment removal (furnace and AC): $640
- Propane supply line removal and chimney sealing: $640
- Installation labor (4 days, 2 technicians): $5,200
- Permit and inspection coordination: $385
- Outdoor unit pad and miscellaneous: $440
- Total project cost: $19,705
- Eversource cold-climate heat pump rebate: −$2,500
- Federal IRA 25C tax credit (30% capped at $2,000): −$2,000
- Net customer investment: $15,205
Long-Term Economics Projection
- Combined annual operational savings: $3,515 (first year actual)
- Simple payback period: $15,205 / $3,515 = approximately 4.3 years
- Propane elimination value: No more dependence on propane supplier scheduling or pricing volatility; substantial peace-of-mind benefit beyond direct cost savings.
- Equipment lifespan: Bosch equipment typical 15-20 year service life; substantial value capture beyond payback.
- Long-term electrification: Property now positioned for future EV charger addition, heat pump water heater conversion, and other electrification.
Lessons Applicable to Other Propane-Heated Homes
- Propane-to-electric economics often very favorable: Propane typically 30-50% more expensive per BTU than natural gas; heat pump electricity substantially cheaper than propane equivalent; payback typically 4-7 years for propane-heated homes vs. 6-12 years for gas-heated.
- Propane supply chain dependence eliminated: No more propane supplier scheduling, delivery coordination, or tank monitoring; substantial lifestyle improvement beyond cost savings.
- Tank rental costs eliminated: $150-$300+ annual tank rental costs eliminated; modest but ongoing savings.
- Natural gas distribution unavailability common: Many homes in rural Windsor, Suffield, Granby, and other Hartford County communities lack natural gas distribution; propane is alternative heating fuel; heat pump conversion economically attractive.
- Existing ductwork usually adequate: Homes built since 1980s typically have adequate ductwork for heat pump operation; substantial cost savings vs. ductwork installation.
- Backup heating capacity essential: Even with cold-climate heat pump capability, backup capacity required for extreme cold; usually electric resistance heat strip.
- Propane tank removal coordination: Propane supplier handles tank removal; coordinate timing with HVAC installation.
Frequently Asked Questions
- Why is propane heating more expensive than natural gas?
- Multiple factors contribute to propane premium. (1) Production: propane is a byproduct of natural gas processing and crude oil refining; substantial production but distinct supply chain from natural gas. (2) Distribution: propane delivered by truck to individual tanks; natural gas delivered via pipeline distribution; pipeline distribution substantially less expensive per BTU. (3) Storage requirements: propane requires on-site storage tanks (rented or owned); natural gas delivered continuously via pipeline; tank infrastructure adds cost. (4) Energy density: propane higher energy density per cubic foot than natural gas (2,500 BTU/cubic foot vs. 1,030 BTU/cubic foot); but per gallon vs. per therm comparison: natural gas $1.20/therm = $1.20/100,000 BTU; propane $3.75/gallon = $3.75/91,500 BTU = $4.10/100,000 BTU. (5) Market pricing: propane prices respond to crude oil and natural gas market conditions; can be substantially volatile during heating season. (6) Supplier competition: limited propane suppliers in some areas reduce price competition. (7) Service costs: propane delivery requires truck-based logistics; smaller suppliers have higher per-gallon overhead. Net result: propane typically 30-50% more expensive than natural gas for equivalent heating output; heat pump electricity substantially less than both for moderate climate conditions.
- How does propane-to-electric heat pump conversion compare economically?
- Substantial savings typical from propane-to-electric conversion. (1) Fuel cost differential: propane typically $3.50-$4.50/gallon ($4.00-$5.10 per 100,000 BTU); electricity for heat pump operation typically $0.20-$0.25/kWh ($0.65-$0.80 per 100,000 BTU equivalent). (2) Efficiency improvement: propane furnaces 80-95% AFUE; modern heat pumps 250-400% effective efficiency (COP 2.5-4); heat pump produces 2.5-4 BTU of heat per BTU of electricity. (3) Combined effects: typical 70-80% heating cost reduction. (4) Conversion costs: $14,000-$22,000 typical project cost; depends on home characteristics. (5) Tank rental elimination: $150-$300+ annually. (6) Supplier dependence elimination: no propane delivery scheduling, payment processing, or supply chain risk. (7) Eversource rebates plus federal IRA credit: typically $2,500-$5,500 combined incentives. (8) Payback period: typical 4-7 years for propane-heated homes; substantially faster than gas-heated homes due to fuel cost differential. (9) Customer experience: substantial lifestyle improvement from propane independence; particularly valued by remote rural property owners.
- What about homes that need to retain propane for other uses (cooking, water heating)?
- Multiple approaches possible. (1) Complete propane elimination: heat pump for HVAC; heat pump water heater for hot water; electric range/cooktop for cooking; complete electrification. (2) Partial propane retention: heat pump for HVAC only; retain propane for water heater and cooking; smaller propane tank possible; reduced supplier dependence but not eliminated. (3) Cooking conversion: induction cooktop or electric range substantially better than older electric resistance ranges; substantially cheaper than continued propane cooking. (4) Water heating conversion: heat pump water heater $2,800-$4,800 installation; substantial efficiency gain; federal IRA credit $2,000 plus Eversource rebate $1,500 reduces effective cost; quick payback typically 3-7 years. (5) Customer preference: some customers prefer gas cooking; others prefer electric induction; personal preference factor. (6) Tank size reduction: smaller propane tank for retained equipment; typically lower rental cost; less storage requirement. (7) Phased approach: heat pump first, water heater later, cooking later; allows budget pacing. (8) Complete elimination benefit: ending all propane use eliminates supplier dependence entirely; substantial peace-of-mind benefit. Each situation has individual considerations; consultation visit identifies optimal approach for specific home and customer.
- How does Bosch IDS 2.0 compare to other heat pump brands?
- Bosch IDS 2.0 is a competitive premium brand with growing Connecticut market presence. (1) Engineering quality: German engineering reputation; substantial development investment; modern features standard. (2) Efficiency: SEER2 20.5, HSPF2 10.0 competitive with Mitsubishi, Daikin, Trane premium brands. (3) Cold-climate performance: full heating to 0°F; adequate for Hartford winters but Mitsubishi Hyper-Heat (rated to −13°F) somewhat better. (4) Pricing: typically priced 5-10% below equivalent Mitsubishi or Daikin equipment; better value for moderate Hartford winters. (5) Service network: smaller Connecticut service network than Mitsubishi or Carrier; growing presence but not as widespread. (6) Warranty: 10-year limited parts warranty; competitive with other premium brands. (7) Specific advantages: variable-speed inverter compressor; sophisticated controls; sometimes preferred by customers seeking competitive premium positioning. (8) Specific limitations: smaller service network in some areas; equipment availability sometimes longer lead times than dominant brands. For this case study, Bosch was selected based on customer preference and competitive pricing; would have produced equivalent results with Mitsubishi, Daikin, Trane, or other premium brands.
- What if I'm in a rural area without natural gas distribution?
- Multiple options for rural HVAC. (1) Propane heating: traditional rural alternative; substantial fuel cost premium vs. natural gas; supplier dependency. (2) Heat pump electric heating (this case study's approach): substantial fuel cost reduction; supplier independence; modern reliable equipment. (3) Oil heating: another rural option; declining market share due to environmental concerns and operating costs. (4) Geothermal heat pump: substantial premium ($55,000-$95,000+) but exceptional efficiency; appropriate for properties with adequate land. (5) Combined approaches: propane retention with heat pump primary; flexibility but ongoing fuel costs. Rural Windsor characteristics. (1) Many properties lack natural gas; propane and oil are common; heat pump conversion increasingly attractive. (2) Larger lots support geothermal sometimes. (3) Electric service availability variable; some properties have substantial service, others limited. (4) Heat pump operation requires reliable electric service; consider service reliability in selection. (5) Solar PV pairs well with heat pumps; substantial electricity generation potential. (6) EV transition supports continued electrification investment. The consultation visit identifies which approach best matches specific rural property characteristics and customer priorities.
Contact Biozura Heating and Air
For heat pump consultation in Windsor and surrounding rural areas, contact us. Tomás Reyes leads heat pump installations. Eversource Participating Contractor #CT-EVS-22-04612. Connecticut DCP Unlimited HVAC License #S1-0414829.
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