How Much Does It Really Cost to Heat Your Home in Wisconsin?
If you live in Wisconsin, heating your home is a major expense, especially with cold winters that last from October to May. Whether you use natural gas, LP gas (propane), or a combination of heating systems, understanding how much it costs to keep your home warm throughout the heating season is essential for managing your energy bills. In this guide, we’ll compare the true cost of heating systems, including 80% single-stage furnaces, 96% two-stage furnaces, 97% modulating furnaces, and inverter-style heat pumps, to help you decide which option is best for your home. If your searching for replacement heating costs we have a blog for that.
Why Heating Costs Vary in Wisconsin
In Wisconsin, winters are harsh and long, which means heating efficiency becomes crucial in controlling costs. Homes use different types of fuel, including natural gas, propane (LP gas), and electricity, and the price of these fuels fluctuates based on demand and availability. For example, while natural gas is generally cheaper than propane, the efficiency of your furnace or heat pump plays a significant role in determining how much energy you’ll use to maintain a comfortable temperature indoors.
With heating accounting for up to 50% of your home’s energy usage during the winter months, choosing an energy-efficient system could save you thousands of dollars over time. That’s why comparing fuel types and understanding the efficiency ratings, such as AFUE (Annual Fuel Utilization Efficiency) for furnaces and SEER (Seasonal Energy Efficiency Ratio) for heat pumps, is essential when evaluating your options.
What’s the Best Heating System for Cold Climates Like Wisconsin?
When selecting the best heating system for cold climates, you need to weigh the efficiency and cost of the system against its performance in extremely cold temperatures. Wisconsin homes typically rely on a combination of systems like natural gas furnaces, propane furnaces, or dual-fuel systems (heat pumps with a backup furnace). Each system has advantages and disadvantages depending on your budget, fuel availability, and desired comfort level.
Natural Gas Heating Systems
Natural gas is the most common heating fuel in Wisconsin due to its lower cost compared to propane. It’s also more widely available, especially in urban areas. Natural gas furnaces are typically more efficient and less expensive to operate than propane furnaces, making them a popular choice for homeowners looking to keep heating costs low.
LP Gas (Propane) Heating Systems
For homeowners in rural areas where natural gas isn’t available, propane (LP gas) is a common alternative. While propane is more expensive than natural gas, it provides consistent heating in cold weather and can be used in high-efficiency furnaces. Propane also has the advantage of being stored onsite, which ensures you have fuel available even during supply disruptions.
Heat Pumps with Backup Furnaces (Dual-Fuel Systems)
For homeowners looking to maximize efficiency and reduce their reliance on fossil fuels, an inverter-style heat pump paired with a modulating furnace is an excellent choice. Heat pumps are highly efficient and work best when the temperature is above freezing. In colder conditions, the backup furnace kicks in to provide additional heat, ensuring comfort during Wisconsin’s harsh winters. These dual-fuel systems combine the efficiency of electricity with the reliability of gas, delivering year-round savings on energy costs.
Natural Gas vs. Propane Heating: What’s Cheaper in Wisconsin?
One of the most common questions we hear is, “Which is cheaper: natural gas or propane?” The answer depends on several factors, including your location, the current fuel prices, and the efficiency of your heating system.
- Natural Gas: On average, natural gas is cheaper than propane and is a better option for homeowners with access to gas lines. It is more consistent in pricing and delivers a better cost-to-efficiency ratio when used with high-efficiency furnaces.
- Propane (LP Gas): Propane is more expensive but offers great heating efficiency. It’s commonly used in rural areas where natural gas pipelines are unavailable. However, propane prices can be volatile, especially during the winter months when demand increases.
Both options have their pros and cons, but if you’re aiming for long-term savings, installing a high-efficiency furnace—regardless of fuel type—can significantly reduce your heating bills over time.
Heating Efficiency: Why AFUE and SEER Matter
The AFUE rating for furnaces and SEER rating for heat pumps are key indicators of energy efficiency. The higher the rating, the more efficiently the system converts fuel or electricity into heat. This means lower energy bills for the same level of comfort.
- AFUE measures the percentage of fuel that is converted into usable heat. For example, a furnace with a 96% AFUE rating converts 96% of its fuel into heat, with only 4% wasted.
- SEER measures the efficiency of heat pumps in cooling mode but also gives insight into how efficient the heat pump is during the heating season. A SEER 17+ heat pump will provide significant savings in mild weather by using less electricity compared to traditional heating systems.
Understanding these ratings helps you choose a system that will minimize fuel usage, lower your energy costs, and reduce your environmental impact.
Cost Comparison of Heating Systems in Wisconsin
Here’s a breakdown of the estimated cost per hour, yearly cost, and total cost over 12 years for each system:
| Heating System Type | Cost per Hour of Operation | Yearly Cost of Operation | Total Cost of Operation Over 12 Years |
| 80% Single-Stage Furnace (Natural Gas) | $2.34 | $2,500 | $30,000 |
| 80% Single-Stage Furnace (LP Gas) | $3.44 | $3,126 | $37,512 |
| 96% Two-Stage Furnace (Natural Gas) | $1.95 | $2,084 | $25,008 |
| 96% Two-Stage Furnace (LP Gas) | $2.70 | $2,604 | $31,248 |
| 97% Modulating Furnace (Natural Gas) | $1.87 | $2,062 | $24,744 |
| 97% Modulating Furnace (LP Gas) | $2.45 | $2,423 | $29,076 |
| Inverter Heat Pump + 97% Modulating Furnace (Natural Gas, SEER 17+) | $1.50 (Electric) + $1.12 (Natural Gas) | $2,100 | $25,200 |
| Inverter Heat Pump + 97% Modulating Furnace (LP Gas, SEER 17+) | $1.50 (Electric) + $1.80 (LP Gas) | $2,550 | $30,600 |
The Master Tradesman Shows His Math:
At Austin Plumbing, Heating, Air & Electric, we believe in providing transparent, data-backed information so you can make an informed decision. Here’s how we calculated the cost per hour, yearly costs, and 12-year costs for each heating system.
Energy Rates Assumed:
- Electricity: $0.17 per kWh (based on current rates from We Energies).
- Natural Gas: $1.50 per Therm.
- LP Gas (Propane): $2.50 per gallon.
Heating System Efficiency:
- 80% AFUE: This means 80% of the fuel is converted into heat, while 20% is wasted.
- 96% AFUE: Converts 96% of fuel into usable heat, reducing fuel waste.
- 97% AFUE: The highest efficiency rating, meaning 97% of the fuel is converted into heat.
- Inverter Heat Pump: Efficiently runs on electricity during moderate temperatures, switching to a gas furnace for backup when it gets very cold.
Cost Per Hour Calculation:
To calculate the cost per hour of operation for each system, we used the following formula:
Cost per Hour = (BTU Output × Fuel Cost per Unit) ÷ Efficiency
For example:
- For the 80% Single-Stage Furnace using natural gas, we multiplied the BTU output by the cost per Therm of gas, then divided by 80% to account for efficiency.
For the inverter heat pump, we calculated the cost of electricity during milder temperatures and the cost of gas when the furnace kicks in as backup.
Yearly and 12-Year Cost Calculation:
We estimated the yearly cost based on typical Wisconsin weather, calculating the total heating hours needed throughout the season. Then, we multiplied the hourly cost by the number of heating hours per year.
For example:
- Yearly Cost = Cost per Hour × Heating Hours per Year
Finally, we calculated the 12-year total cost by multiplying the yearly cost by 12 years:
- Total 12-Year Cost = Yearly Cost × 12
This calculation gives a clear picture of the long-term cost of operating each heating system, considering both efficiency and energy rates.
How to Save on Heating Bills in Wisconsin
Reducing heating costs doesn’t always require a complete system overhaul. Here are some key ways to improve efficiency and lower your heating bills without sacrificing comfort:
- Regular Maintenance: Regular furnace or heat pump maintenance can improve your system’s efficiency by up to 10%. Change air filters regularly and schedule annual tune-ups to keep your system running smoothly.
- Upgrade Your Thermostat: Installing a smart thermostat can help you optimize energy use. It automatically adjusts the temperature when you’re not home, ensuring you’re not heating an empty house. By lowering the temperature by 5-10 degrees when you’re away or asleep, you can reduce heating costs by as much as 10%.
- Improve Home Insulation: Adding insulation to your home is one of the most cost-effective ways to reduce heating costs. Heat escapes through poorly insulated walls, roofs, and windows, forcing your heating system to work harder. By properly insulating your home, you can keep the heat inside, lowering the demand on your heating system and saving money in the long run.
- Seal Drafts: Small air leaks around windows and doors can account for up to 20% of your home’s energy loss. Sealing these gaps with caulk or weatherstripping can reduce drafts and lower your heating costs significantly.
- Consider a System Upgrade: If your current system is over 15 years old, upgrading to a high-efficiency furnace or a dual-fuel heat pump system can drastically cut your energy bills. Modern systems are far more efficient and can save you hundreds of dollars per year in heating costs.
Why Trust Austin Plumbing, Heating, Air & Electric?
At Austin Plumbing, Heating, Air & Electric, we know that homeowners want real answers, not vague estimates or sales-driven data. That’s why we’re committed to transparency and accuracy in everything we do, from service calls to blog posts like this one. Our team of master tradespeople has over 50 years of combined experience, and we’re passionate about helping our clients make informed, cost-effective decisions for their homes.
When you choose Austin Plumbing, Heating, Air & Electric, you’re getting more than just service. You’re getting honest, trustworthy advice backed by real-world data and years of expertise. We don’t just want to solve your heating problems today—we want to help you build a better, more efficient home for the future.
Make the Smart Choice for Your Home Heating
Selecting the right heating system for your home depends on your budget, your fuel options, and your long-term goals for energy efficiency. Whether you prefer the reliability of a natural gas furnace, the flexibility of a dual-fuel system, or the potential savings of a high-efficiency heat pump, we’re here to help you find the best solution for your home.
At Austin Plumbing, Heating, Air & Electric, we’re committed to helping Wisconsin homeowners stay warm while minimizing their energy bills. If you have any questions or want personalized advice on the best heating system for your home, contact us today. Our experts will walk you through the options and help you make the best choice for your budget and comfort.
