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Building Propane Homes: What Are the Advantages?

Date: October 2, 2018

Architect drawing blueprint

Have you heard about the Propane Energy Pod? It’s an innovative model for new-home construction that merges these five applications of propane into an integrated whole house energy package:

  • space heating
  • water heating
  • cooking
  • clothes drying
  • fireplaces

Builders use this approach to give their buyers a home that is a pleasure to live in—with gas for cooking, clothes drying and fireplaces, unlimited hot water and super-efficient space heating.

Consider these propane advantages for new construction – especially when compared to using electricity as a power source:


Propane emits less than half the greenhouse gas emissions of electricity to produce the same amount of energy. That’s because more than 40% of the electricity used in the U.S. is produced by coal-fired plants. Read more about Propane vs. Electric.


Propane-powered appliances are typically much more efficient than electric models of similar size and output. A tankless propane water heater, for example, can save as much as 60 % on water heating costs compared to standard electric water heating systems.


Propane can power just about any appliance or home comfort system, providing energy for space heaters, water heaters, cooking rangers, clothes dryers, and even fireplaces – all from a single tank.

Backup power

Having propane onsite makes installing backup power via generators much more convenient and affordable. It can also make a home more marketable and add to its value.


Energy-efficient propane furnaces heat air to a much higher temperature than electric heat pumps, making it easier to warm the home quickly and retain a comfortable temperature in colder weather. Additionally, propane hearths, space heaters and lighting all provide an inviting setting inside and outside the home – another key selling point.


Propane is stored and transported as a pressurized liquid, and the fuel is nontoxic and non-pooling. The propane industry is also regulated by codes and standards set by the National Fire Protection Association (NFPA), the Department of Energy (DOE), the Department of Transportation (DOT) and various state and local regulatory agencies. What’s more, technicians are highly skilled because of the propane industry’s voluntary Certified Employee Training Program (CETP). Read more about propane safety.


To promote the construction of Energy Pod Homes within the U.S., the Propane Construction Incentive Program offers builders and remodelers up to $1,500 for each home built or remodeled to the Propane Energy Pod model. Construction professionals are eligible to receive the incentive for up to five homes per state, for a total of up to $7,500 per year. Read more.

Flexible installations

Propane tanks can be installed just about anywhere, above or below ground. Additionally, propane water heaters take up less space than other types of water heaters. They also have more accurate temperature adjustment and offer more size and installation options.

Read more about the benefits of propane.